4. PUBLIC – PRIVATE PARTNERSHIPS (PPP)
HONDURAS INVESTOR´S GUIDE 2020-2021
4.1.7 ADMISSIBILITY OF AN INITIATIVE According to Article 19 of the PPP Law; the Ministry of Finance, through the Fiscal Contingency Unit (UCF, for its acronym in Spanish), based on the evaluation of the technical studies, must select and determine which projects can be implemented under public-private participation schemes. These projects, as previously contemplated within the Public Investment System, must be authorized by the Minister of Finance. PROCEDURE According to article 18 of the PPP Law; projects must be incorporated into the National System of Public Investment under public-private participation models. They must present a previous feasibility inspection including cost-benefit analysis and viable financing schemes to ensure the execution of the project, work and/or delegable service. These analyses must be carried out by the Superior Council for the Public-Private Partnership with the Specialized Technical Unit for PPP Projects (UTEP-APP, for its acronym in Spanish). The Ministry of Finance is instructed to participate in the entire project cycle of the Public-Private Partnership initiatives. Its participation includes: all matters relating to the processes of presentation, socio-economic evaluation, assessment of budgetary capacity, declaration of eligibility and selection, structuring and awarding of projects under public-private partnership models, whether the initiative is of public or private origin, including those projects that have a trust approved by Decree of the National Congress and that are still in the process of structuring by the trustee and UTEP-APP. Based on Technical Studies carried out during the entire cycle of the Public-Private Partnership (PPP) project, the Fiscal Contingency Unit (UCF, for its acronym in Spanish) of the Ministry of Finance must issue an opinion authorizing or disallowing on the start or continuation of each of the projects under public-private participation models.
The Economic component should be limited to assessing one of the following aspects: a. The one who provides the service in better economic conditions without sacrificing quality and efficiency in accordance with what is specified in the pre-established terms of employment; b. The one who offers greater benefits to the State; and, c. The one who requires less co-financing or State contribution. 4.1.6 PRIVATE INITIATIVE PRESENTATIONT According to Article 36 of the Regulations of the Promotion Law for the PPP, for the presentation of the private initiative of investment projects must meet the following minimum requirements: a. Legal existence of the proposer. b. Financial capacity of the proposer. c. Background evidence of the experience of the author of the initiative. d. Appropriate management capacity, reliability and experience for projects of equal or similar size. e. Detailed identification and description of the project and its nature. f. Presentation of the baseline studies of the economic, financial and technical feasibility of the project, works, service or concerned delegable activity. g. Estimated total investment amount and investment breakdown by year, as well as the methodology used for its calculation. h. Declare, if the project does not involve investment, the savings generated, the improvement of the quality, the safety, the time of the goods or services to be provided. i. Indication of the resources source and the type of financing, including whether the project involves State co-financing and in what form. j. Whether the project involves the use of public property or State property and its identification. k. Environmental pre-feasibility study for projects that would have to undergo the environmental impact assessment process in
accordance with current regulations. l. Identification of the public interest.
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