Uruguay's Parliament recently approved the Public-Private Partnership Act (PPP) which establishes a new kind of link between private entities and the State.
"This is a new tool that does not replace the prior regulatory framework for privatestate relationships, but does gives the investor added security," said Adriana Rodriguez, President of the Corporacion Nacional para el Desarrollo (CND). The CND is a public agency whose mission is to facilitate the implementation of development-friendly policies. The "PPP" Act assigned the CND the role of advisor, promoter and educator for all operational aspects of the submitted projects.
"It was modeled on Spain. The decision was to make it a law because that way it provides greater security. It cannot be changed by a president or minister. Only Parliament can modify it, which offers a greater sense of validity," Rodriguez noted.
"Uruguay has an urgent need for new infrastructure, for instance, to support the growth of its production activities, and it lacks the resources to meet those needs in the short term. This tool allows commitments to be assumed that can be paid for in the mid and long term. This is a law to resolve the emergencies that we have today," said Rodriguez.
"Public agencies will not be the only ones who can submit projects within the Public-Private Partnership Act. The corporation can receive private initiatives. We are going to be a service window with promotion and...