FOR PUBLIC INVESTMENT IN PANAMA
INTRODUCTION
This chapter sets out the purpose of the Act, which is to establish the institutional framework and processes for the development of public initiative investment projects amounting to $15 million or more (except for municipalities, which may be smaller) under the Public-Private Partnership modalities. It describes the scope of application in the State that includes the Central Government, non-financial public entities, municipalities and State-controlled corporations, excluding several important sectors such as the Panama Canal, water, health, education, public safety and non-metallic mineral extraction.
This chapter includes the official definition of Panama's PPPs, highlighting that the private sector legal entity that is part of the contract may commit to the design, construction, repair, expansion, financing, exploitation, operation, maintenance, administration and/or supply of a good or service to the contracting public entity and/or to the end users of a public service. It is clear that the PPP contractor is wholly or partly responsible for the financing, while the payments for the investment made and the expenses may be wholly borne by the public entity or shared with the end users. In order to comply with the social benefit, the payment received by the APP contractor may be conditioned upon compliance with specific standards of service quality levels.
La moratoria no es más que la ampliación del tiempo que se concede para hacer una cosa, especialmente para cumplir una obligación o pagar una deuda.
Multas por presentaciones de declaraciones e informes presentados antes de la entrada en vigencia de la Ley (15 de octubre de 2019
En este capítulo la Ley establece doce principios que son de obligatoria aplicación en todas las etapas de preparación y ejecución de proyectos APP.
A manera de ejemplo mencionamos tres: “Interés superior del Estado”, el cual debe ser garantizado por el contratista; “No delegación de funciones públicas”, en base al cual las actividades de exclusiva competencia del Estado, no pueden ser transferidas al contratista; y, finalmente, “Valor por dinero”, según el cual el proyecto APP debe combinar de forma óptima costos y calidad de servicio, de tal manera que esta modalidad de contratación ofrezca más beneficios al Estado que otras modalidades.
Se contempla aquí el entramado burocrático dentro del Estado encargado de ejercer la iniciativa, selección, implementación y supervisión de los Proyectos APP.
En primer lugar, aparece un Ente Rector conformado por 5 Ministros, que lleva el liderazgo del tema, luego sigue la Secretaría Nacional de APP, adjunta al Ministerio de la Presidencia, que es la unidad de apoyo técnico y operativo para el ente rector. Igualmente se define el rol de la unidad técnica contratante, del Ministerio Economía y Finanzas y de un ente denominado Comité Consultivo, conformado por gremios empresariales, de trabajadores y del sector académico, que recomiendan políticas del tema APP al ente rector.
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Registro Nacional no podrá emitir certificaciones de personería jurídica o inscripción de documentos a favor de quienes incumplan con el suministro de información
PUBLIC-PRIVATE PARTNERSHIPS (PPP) SCHEME
The Government of Panama recently approved Law 93 of 2019, "Which creates the Public-Private Partnership Regime for development as an incentive for private investment, social development and job creation". With this law, the Republic of Panama catches up with other countries in the region by having a first-level legal framework that orders and formalizes the formula for the private sector to invest, with the prospect of reasonable profitability, in public initiative projects, expanding the State's options to meet social needs.
A few days ago the Government of Panama appointed the National Secretary of Public-Private Partnership, an entity attached to the Ministry of the Presidency, which demonstrates the interest in implementing the provisions of the Act. The regulation of Law 93 is still pending, but we anticipate that it will be issued soon.
In the following sections we summarize, chapter by chapter, the aforementioned Law 93 of 2019, which is a fairly extensive body of law, composed of 88 articles and 16 chapters.
Chapter I: General provisions
¿Qué es MORATORIA TRIBUTARIA?
Multas por Tasa Única que fueran captadas antes de la entrada en vigencia de la Ley
Informes de cumplimiento obligatorios con fecha de vencimiento posterior al 30 de junio 2019
Declaraciones de períodos especiales con vencimiento posterior al 30 de junio de 2019
Capítulo 4: Marco Presupuestario para Contratos de APP
Se contempla aquí el entramado burocrático dentro del Estado encargado de ejercer la iniciativa, selección, implementación y supervisión de los Proyectos APP.
En primer lugar, aparece un Ente Rector conformado por 5 Ministros, que lleva el liderazgo del tema, luego sigue la Secretaría Nacional de APP, adjunta al Ministerio de la Presidencia, que es la unidad de apoyo técnico y operativo para el ente rector. Igualmente se define el rol de la unidad técnica contratante, del Ministerio Economía y Finanzas y de un ente denominado Comité Consultivo, conformado por gremios empresariales, de trabajadores y del sector académico, que recomiendan políticas del tema APP al ente rector.
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Tasas
Definitions of the most important terms of the Law, such as the concepts of "Shadow Tolls", "Risk Allocation Matrix" or "Reference Value", are contained in this chapter. In the same way, the classification of PPPs is included in, on the one hand, the "self-financing" PPPs, referring to those where all costs and adequate profitability to the risk assumed are recovered with the income received by the PPP contractor, while, on the other hand, there are the "co-financed" PPPs, in which the sustainability of the project requires financial resources from the State in the form of transfers, guarantees or both.
In this chapter, the Law establishes twelve principles that are mandatory at all stages of preparation and execution of PPP projects.
By way of example, we mention three: "Superior interest of the State", which must be guaranteed by the contractor; "No delegation of public functions", on the basis of which activities of exclusive competence of the State cannot be transferred to the contractor; and, finally, "Value for money", according to which the PPP project must combine optimum costs and quality of service, in such a way that this contracting modality offers more benefits to the State than other modalities.
Chapter 3: Institutional Framework of the PPP Programme
In this section of the Law we find regulations of vital importance such as the budgetary limits that apply to the contracting public entity, the municipalities and the governing body to contract and authorize PPP projects. It also includes rules on budget availability and on the means by which the contributions of the contracting entities may be made, in the latter case we are talking about cash or in kind, in addition to the granting of exploitation rights. It also includes a cap on state bank financing of PPP projects, which may not exceed 25% of the value of the project.
This includes the bureaucratic framework within the State responsible for the initiative, selection, implementation and supervision of PPP Projects.
Firstly, there is a Governing Body made up of 5 ministers, who lead the issue, then follows the National PPP Secretariat, attached to the Ministry of the Presidency, which is the technical and operational support unit for the governing body. It also defines the role of the contracting technical unit, the Ministry of Economy and Finance and an entity called the Consultative Committee, made up of business associations, workers' associations and the academic sector, which recommend PPP policies to the governing body.
This chapter deals with the identification of risks and their distribution between the PPP contractor and the contracting entity. The parameters of the financial guarantees and contingent commitments of the PPP contractor are also established.
Chapter 5: Allocation of Risks, Guarantees, Commitments and Registration
As explained in this chapter, for PPP projects to be eligible they must be supported by studies that must include general social analysis, cost-benefit analysis, proposed risk distribution, service indicators, sustainability and feasibility study, analysis of legal aspects, and preliminary environmental analysis.
The other big issue in this chapter is the special procurement rules for PPP project tenders and the minimum content of PPP contracts.
The gaps in these special public contracting rules of the PPPs will be filled in addition by the provisions of Law 22 of 2006 on public contracting, except that the "PanamaCompra" portal will not be used but a special portal that will have the governing body of the PPPs.
Chapter 6: Eligibility and Approval of PPP Projects, Tenders and Contracts
The proposal and performance bonds of the PPP contract are regulated, as well as the insurances that the company holding the PPP contract must contract.
Chapter 7: Bonds and Insurance
CHAPTER 8
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CHAPTER 2: PrincipLES
Chapter 4: Budgetary Framework for PPP Contracts"
Chapter 8: Modification of Contracts
The guidelines for modifying PPP contracts can be found in this chapter, protecting the interest of the State, taking into account evaluations and percentages of the value of the contract.
It also regulates amendments to the contract at the request of the PPP contractor, financial compensation following amendments to the contract and the formalization of amendments.
This chapter also provides for the definition of the ensuing acts and the compensation for the PPP contractor resulting from these contracts.
Chapter 9: Acquisition, Expropriation and Limitations of Private Property
Personas jurídicas obligadas al suministro de información
Sociedades Anónimas
Sociedades de Responsabilidad Limitada
Sociedad en Nombre Colectivo
Sociedades en Comandita
Sucursales de Sociedades Extranjeras
Empresas Individuales de Responsabilidad Limitada
3016 Sociedades Civiles
Representante Legal
Presidente
Gerente o Subgerente
Administrador
Gerente
Apoderado Generalísimo
Gerente
Administradores
Chapter 10: Powers of the Administration
This chapter establishes the Administration's powers with respect to authorizations for the commissioning of the PPP project, the penalties applicable to contractual breaches, which must be included in the RFP of the public act where the PPP contractor was selected, serious breaches of the contract, intervention of the contract for serious breach.
Three issues are included here: it is announced that the Executive Branch will regulate the Law, without prejudice to certain regulatory powers granted to the governing entity; the clarification that concessions previously granted to this Law are not applied to this Law; and, finally, the effective date of the Law that began with its enactment in Official Gazette No. 28864-B of September 19, 2019.
CONTÁCTENOS
The first rule in this chapter is that assets and rights acquired by the PPP contractor in connection with the project may not be disposed of or mortgaged without the authorization of the contracting entity.
The second refers to the necessary expropriations to be carried out at the head of public entities.
The third refers to the public easements affected by the project, which must be re-established within a period of time.
This mainly regulates the responsibilities of the PPP contractor for the construction of infrastructure, with contractors, sub-contractors and employees.
The same includes a very broad rule on the obligation of the PPP contractor to maintain the conditions of service, e.g. access and signaling.
Chapter 11: Rights and Obligations of the Company Holder of the PPP Contract
In this chapter we can find rules about the terms of the contract, its temporary suspension and the causes for the termination of the PPP contract. It also includes the procedure for termination for breach of contract by the company holding the PPP contract and the rules for the disqualification of contractors.
Three additional issues of importance are also addressed here: administrative rescue of the PPP contract and related compensation; abandonment of work or unjustified interruption of service; and the declaration of insolvency of the company holding the PPP contract.
Chapter 12: Term, Suspension and Termination of the PPP Contract
In the PPP scheme, after the contract is awarded, the contracting entity has supervisory and oversight powers.
This chapter regulates the levels of service quality that the PPP contractor must meet and the penalties for non-compliance; the information required to verify compliance; and the duty of the PPP contractor to report relevant facts that may affect the development of works or the provision of services.
Chapter X13: Inspection and Surveillance of the Administration
In the event of a dispute, a stage of direct contact between the entity and the contractor must be exhausted, seeking an amicable solution. If there is no agreement, the disputes will be submitted to a Technical Panel or directly to Arbitration.
Chapter 14: Dispute Settlement
This chapter regulates diverse topics such as: related rights such as the use of the subsoil; ownership of the contract vis-à-vis third parties; the Special Pledge of the PPP contract without displacement of the rights and pledged goods; transfer rules of the PPP contract and mechanisms for citizen access to information.
CHAPTER 15: OTHER PROVISIONS
CHAPTER 16: FINAL PROVISIONS
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