4. INVESTORS GUIDE HN - 2021 PUBLIC–PRIVATE PARTNERSHIPS

4. PUBLIC – PRIVATE PARTNERSHIPS (PPP)

HONDURAS INVESTOR´S GUIDE 2020-2021

4.1.4 DISTRIBUTION OF RISKS According to Article 9 of the PPP Law, the distribution between the parties of the inherent risks and costs must be agreed in accordance with what is most appropriate to the specific needs of the Public-Private Partnership (PPP). Those may be the extraordinary financial risks, attributable to unforeseen and commercial causes of the operations, among others. The conflicts by both parties must be clearly defined and the participation of the State in the Public-Private Partnership (PPP) should always be limited to its contributions to the Partnership. 4.1.5 AWARDING FORMULA According to Article 25 of the PPP regulation, the Public-Private Partnership shall be awarded to the holder of the most appropriate technical and economic proposal, according to the evaluation system set out in the bid specifications. In accordance with Article 10 of the Law, the economic qualification shall be limited to assessing the following aspects: a. The presentation of the service in better economic conditions for users without sacrificing quality and efficiency, in accordance with bid specifications and/or in the draft Public-Private Partnership Contract. b. The offering of greater economic benefits to the State. c. The requirement for less co-financing, guarantees or State contribution in the case of works, services and/or projects requiring co-financing or State contribution. The bid specifications shall lay down the criteria, time limits and the formalities to be followed in the evaluation of proposals in each case. According to Article 10 of the PPP Law, the awarding formula must be simple and consider only two components: economic and technical.

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