Panama poised to enact law to facilitate PPPs

Panama’s government has submitted a bill to govern the creation of public-private partnerships (PPPs) that is expected to “provide a much-needed regulatory and institutional framework to allow for the development of major projects without requiring substantial short-term disbursement of public funds”, according to Ramón Varela, a partner at law firm Morgan & Morgan in Panama City. 

The law will provide an option for developing major infrastructure projects without compromising the government’s indebtedness, encourage private investment and job creation, and strengthen Panama’s competitive position with other Latin American countries, he added.

The PPP bill was submited to the National Assembly in July by President Laurentino Cortizo, and which passed the legislation on September 11, and the bill now only requires the signature of the president and publication in the Official Gazette in order to be enacted into law.

The new legislation seeks to attract capital from private investors who, at the same time, will bring forth their experience, know-how, equipment, technologies and technical and financial capabilities to the fore, and which will be used to create, develop, improve, operate and/or maintain public infrastructure for the provision of public services, according to the legislation’s wording.

“The new law is an important milestone in bringing Panama’s PPP regulatory framework in line with those of other Latin American countries, and which will hopefully usher in a new era of success in major infrastructure investment,” Varela (pictured) said.