Eligibility Criteria
In accordance with Article 27 of Law No. 93 of September 19, 2019, for an initiative to be considered for implementation as a PPP project, in its planning, programming and structuring stage it must have, among others, economic studies, cost-benefit analysis and the comparative opinions that demonstrate that it is an efficient and/or necessary modality for its execution.
SNAPP will analyze the proposals submitted by the Contracting Public Entities (CPE), which must be accompanied by a technical report, which must comply with the eligibility criteria detailed below. SNAPP will then prepare and submit a report with recommendations to the Governing Body, which will determine their suitability and eligibility.
1. General Social Analysis
It must include at least a preliminary analysis of the direct and indirect social benefits that the project may represent to the population, an estimate of the number of people that may benefit from the project, identifying the areas of greatest beneficial impact, and the temporary and permanent effects that the execution of the project may cause to populations, transportation routes, access roads, easements, existing infrastructure, businesses, among others.
2. Cost-Benefit Analysis
It must include a preliminary analysis comparing the economic benefits and costs in relation to the execution of the project by a private party through a PPP contract with the execution of the project by the State. The Governing Body will determine the necessary tools to ensure the objectivity of this analysis.
3. Risk Sharing Proposal
It should include an initial proposal for the distribution of project risks, including, but not limited to, construction, financial, commercial, and other risks in the different stages of design, construction, operation, and maintenance of the project, among others.
4. Service Indicators
It must include an initial proposal of the project’s service indicators to ensure compliance with its purpose, detailing how they are to be determined, measured, interpreted, and monitored, among others.
5. Sustainability and Feasibility Study
It must include a preliminary study to determine whether the PPP project is self-sustainable or co-financed, including at least the identification of the project’s sources of income, an estimate of total project costs, the project’s cost and income flow schedule, financial obligations, contingencies, profits, project execution times with the determination of the different phases, assuming reasonable financial and economic conditions at all times.
6. Analysis of Legal Aspects
It should include an analysis of the legal aspects that the execution of the project could reasonably face, including, but not limited to, acquisitions or forced easements, expropriations, easements, roadways, access roads, obtaining permits, among others.
7. Preliminary Environmental Analysis
It must include a basic environmental analysis that determines the environmental impact studies that the project will require to be executed, as well as the expected environmental impact, mitigation mechanisms, among others.