The General Directorate of Public-Private Partnerships (Dgapp) reported this Wednesday that it presented to sectors of national life a proposal to modify the Law 47-20 of Public-Private Alliances (APP), with the objective of modernizing the legal framework and expediting the execution of strategic projects for the development of the country.
The initiative was presented at a meeting with directors of business entities and of the public officials linked to the matter, indicates a press release.
The event was led by the executive director of the Dgapp, Andrés Lugo Riskwho explained that the modification responds to the lessons learned during the first almost six years of application of the PPP regime.
“A good law It must not only protect the public interestmust also allow projects to be executed in reasonable times, with clear rules and with a State that can act with agility, without losing control or transparency“he stated Lugo Risk.
The official pointed out that, although the Law 47-20 meant a historic step to institutionalize public-private alliances in the Dominican Republic, experience has shown that the current framework It is complex and not very adaptable to the diversity of projects, which has delayed the materialization of initiatives that could be generating employment, investment and better services for the population.
“Many projects that could be transforming communities and improving services take too long to advance. Not because they are not good initiatives, but because the regulatory framework current is complex and not very flexible“explained the executive director of the Dgapp.
Reduce structuring times
The modification proposal seeks to reduce structuring and adjudication times, strengthen technical capacity of public institutions, and improve the bankability and financial attractiveness of projects for investors and financial entities, so that they can be executed more quickly and solidly.
Among the main axes are the introduction of more agile and differentiated procedures according to the complexity of the projects; the creation of APP technical teams within the executing entities; and the establishment of a Specialized Fund for the structuring of projects, which will allow pre-investment studies to be financed and accelerate the step from idea to bidding.
Likewise, the initiative strengthens the governance of the system by formalizing the Technical Committee of the National Council of Public-Private Partnerships, and modernizes the economic regime of the PPPs to facilitate financial closing, including adjustments to the tax treatment and the risk scheme.
- Lugo Risk He emphasized that the draft does not imply a relaxation of controls, but rather an elimination of procedures that do not add value.
