Description

According to Section 29 of the Regulations of Legislative Decree No. 1362, Public Private Parentships (PPPs) in Peru constitute one of the forms of private investment participation, in which the risks of the project are appropriately distributed and resources are preferably allocated from the private sector for the implementation of projects, thus guaranteeing optimal service levels for users.

This form is implemented through long-term Contracts, in which the ownership of the executed investments is maintained, reversed or transferred to the State, based on the nature and scope of the project and the provisions of each Contract. These forms may include concession, operation and maintenance, management, as well as any other contractual form permitted by law.

The current definition of PPP is based on the previous legal framework and the best practices at the international level, which consider elements such as a proper allocation of risks between the public and private sectors, and the value for money principle is considered in all stages of the development of a PPP, which seeks the best combination between costs and the quality of the public service provided to the users, throughout the life of the project
 

ORIGIN: STATE INITIATIVE vs UNSOLICITED PROPOSALS

PPPs are created at the initiative of the public entities that own the projects or by the private sector through the presentation of Unsolicited Proposals (IPs, for its acronym in Spanish)

1. State Initiative

It refers to the PPPs that are created at the initiative of the public entities referred to in section 6 of Legislative Decree No. 1362, that is, the Ministries, Regional Governments, Local Governments or other public entities authorized by law. PPP projects created at state initiative result from the planning of each entity, which identifies the needs of the population and the projects that may respond to such needs.

2. Unsolicited Proposals

Section 45 of the Regulations of Legislative Decree No. 1362 establishes that IPs are a mechanism through which legal entities of the private sector, national or foreign, consortia of said entities, or consortia of individuals with legal entities of the private sector, national or foreign, present initiatives for the execution of projects under the PPP form.

Self-financed Private Initiatives (IPA, for its acronym in Spanish) of national jurisdiction and of the entities authorized by law, as well as the Co-financed Private Initiatives (IPC, for its acronym in Spanish) of all public entities that own projects, are presented to PROINVERSIÓN, which acts as a Private Investment Promotion Agency (OPIP, for its acronym in Spanish).

On the other hand, the IPAs of regional or local jurisdiction are presented before the OPIPs of the Regional Governments or Local Governments, as appropriate 1/ .
1/ The IPs are classified as grace requests, pursuant to the provisions of Section 121 of the Consolidated Text of Law No. 27444, General Administrative Procedure Act, approved by Supreme Decree No. 006-2017-JUS, when relevant. Consequently, the right of the proponent ends with the presentation of the IP before the OPIP, with no further possibility of questioning or objecting the decision in administrative or judicial office

Difference of PPP according to their origin

PROJECTS ASSIGNED TO PROINVERSIÓN

As indicated in paragraph 13.1, Section 13 of the Regulations of Legislative Decree No. 1362, those projects meeting any of the following criteria are assigned to PROINVERSIÓN in its capacity as OPIP:

  • • PPP projects of national jurisdiction originated by state initiative that are multisectoral.
    • PPP projects of national jurisdiction originated by state initiative with a Total Investment Cost or a Total Project Cost, in the absence of investment component, amounting to more forty thousand (40,000) UIT.
    • PPP projects of national jurisdiction originated by IPA.
    • PPP projects of jurisdiction of public entities authorized by law originated by IPA.
    • Projects of all Government levels and public entities authorized by law originated by IPC.
    • Projects executed through a Competitive Dialogue form.
    • The PAs of national jurisdiction originated by state initiative with an investment amounting to more than forty thousand (40,000) UIT.
    • The PAs of national jurisdiction and public entities authorized by law originated by IP.
    • Projects that are assigned to PROINVERSIÓN by express legal provision

PROJECT PORFOLIO

 

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