The recent amendment to the Public-Private Partnership (PPP) Law Regulation will greatly reduce bidding processes, while better defining and empowering the role of Peru's Private Investment Promotion Agency (ProInversion).
In past ventures, the average term for tenders (from the project structuring to the call for tenders) was four years, ProInversion Executive Director Alvaro Quijandria informed.
"But our goal is to cut this period to international standards. World-class institutions carry out that process in periods of 18 months —and two years at most— including everything: feasibility and engineering studies," he told El Peruano official gazette.
To this end, terms from the call for bids to the financial close and signing of the agreement will also be cut.
The ProInversion head noted new proceedings will apply to all new projects.
Roles
On the other hand, Quijandria highlighted the new regulation spells out the deadlines and roles of PPP agents.
"I think that's the most relevant change in the new legal framework. Moreover, this new regulation adds transparency by defining the role of each actor in the process."
In this sense, he stressed the measure clarifies the role of the Economy and Finance Ministry as governing body that sets PPP system policies, as well as ProInversion's role as specialized technical institution that implements PPP processes.
Similarly, regulation for the Works for Taxes mechanism expedites processes and establishes agents' roles, thus reinforcing transparency.
Decentralization
Lastly, Quijandria noted the Agency aims to create a decentralized network to support regions across the country. To date, ProInversion has only two offices in interior regions: Arequipa and Piura.
"We will add four offices over the next two years […]. This way, we will be in a closer and more direct position to support regional governments in preparing their projects," he concluded.
(END) DOP/CNA/DHT/MVB