{"id":2191,"date":"2021-10-05T14:48:47","date_gmt":"2021-10-05T14:48:47","guid":{"rendered":"http:\/\/snapp.gob.pa\/?page_id=2191"},"modified":"2026-03-03T11:42:34","modified_gmt":"2026-03-03T16:42:34","slug":"about-ppps","status":"publish","type":"page","link":"https:\/\/snapp.gob.pa\/english\/about-ppps\/","title":{"rendered":"About PPPs"},"content":{"rendered":"\t\t
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About PPPs<\/strong><\/h1><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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What is a PPP?<\/h2>\r\n <\/div>\r\n\r\n
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\r\n Long-term contracts between the public and private sectors to create, improve, and maintain infrastructure and public services.\r\n <\/p>\r\n

\r\n Under this partnership, objectives and risks<\/strong> are shared. The contractor's compensation is linked to strict compliance with service standards, taking full or partial responsibility for the financing, operation, and maintenance of the asset.\r\n <\/p>\r\n <\/div>\r\n\r\n

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\r\n Origin<\/span>\r\n

It emerged in the United Kingdom<\/strong> (1990s) as a tool for renewal. In Panama, it was adopted through Law No. 93 of 2019<\/strong> to encourage social development.<\/p>\r\n <\/div>\r\n

\r\n Regulatory Framework<\/span>\r\n

Based on international best practices<\/strong> and lessons learned from nearly a decade of regulations across Latin America.<\/p>\r\n <\/div>\r\n <\/div>\r\n <\/div>\r\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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\r\n Why a PPP Framework in Panama?<\/span>\r\n <\/h3>\r\n <\/div>\r\n\r\n

\r\n Driving strategic development to transform the country's infrastructure and services.\r\n <\/p>\r\n \r\n

\r\n This framework allows for the execution of projects in key areas such as energy, transportation, logistics, and social development<\/strong>. The goal is to balance the expectations of all stakeholders\u2014from the State and citizens to private developers and financiers\u2014guaranteeing sustainable benefits for users.\r\n <\/p>\r\n <\/div>\r\n\r\n

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How does it work?<\/h3>\r\n <\/div>\r\n\r\n

\r\n PPP projects arise from public initiatives presented by Contracting Public Entities (CPEs)<\/strong>. To be considered, they must meet strategic requirements:\r\n <\/p>\r\n\r\n

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\r\n Requirement A<\/span>\r\n

Must be part of the Five-Year Investment Plan<\/strong>.<\/p>\r\n <\/div>\r\n

\r\n Requirement B<\/span>\r\n

Investment exceeding USD 15 million<\/strong> or under Law No. 93.<\/p>\r\n <\/div>\r\n <\/div>\r\n\r\n

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\r\n Want to learn more? Explore the eligibility elements<\/strong> here<\/a>.\r\n <\/p>\r\n <\/div>\r\n\r\n

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Process Phases<\/h4>\r\n <\/div>\r\n
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\r\n 1 & 2: Pre-feasibility and Feasibility<\/strong>
\r\n Verified by the MEF and SNAPP.\r\n <\/p>\r\n

\r\n 3 & 4: Tendering and Execution<\/strong>
\r\n With final approval from the Regulatory Body.\r\n <\/p>\r\n <\/div>\r\n <\/div>\r\n

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The success of a PPP project lies in its proper structuring and maturation period.<\/strong> Experience in Peru, Colombia, and Chile<\/strong> shows that a project may take between six months and one year to be prepared; complex processes could require up to three years.<\/p>\r\n\r\n

\r\n\r\nDownload Executive Decree No. 439 (Regulation of Law 93)\r\n<\/a><\/div>\r\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Benefits and Advantages<\/h3>\r\n<\/div>\r\n
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Structuring of the project aimed at encouraging the PPP Contractor to comply with the deadlines to start the service<\/strong>, thus avoiding cost overruns due to longer permanence.<\/p>\r\n\r\n<\/div>\r\n

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The goal is to provide quality services to users<\/strong>, with measurement criteria based on indicators to measure the PPP Contractor\u2019s performance.<\/p>\r\n\r\n<\/div>\r\n

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Remuneration is conditioned to infrastructure availability<\/strong>, service levels and quality standards at each stage of the PPP project.<\/p>\r\n\r\n<\/div>\r\n

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The PPP Contractor executes the work with the goal of recovering the invested capital. Therefore, it will have the interest of not delaying its construction and entry into operation.<\/strong><\/p>\r\n\r\n<\/div>\r\n

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The PPP Contractor is responsible for maintaining the project in optimal condition and operation<\/strong>, resulting in the execution of quality works, ensuring the maintenance of these during the term of the contract and guaranteeing that the public purpose of providing the services is fulfilled.<\/p>\r\n\r\n<\/div>\r\n

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Each risk is assigned to whoever can best manage it, either to the Contracting Public Entity and\/or the PPP Contractor<\/strong>, unlike other traditional contracting alternatives. This risk allocation translates into benefits for the State in the development and execution of infrastructure, as well as public service in the country.<\/p>\r\n\r\n<\/div>\r\n<\/div>\r\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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\r\n\r\n\"Logo\"\r\n
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Comparison of Contracting Models<\/h3>\r\n

Based on the current legal framework of the Republic of Panama<\/p>\r\n\r\n<\/div>\r\n<\/div>\r\n

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Contractual provisions<\/th>\r\nPPP contracting model<\/th>\r\nTraditional public procurement<\/th>\r\n<\/tr>\r\n<\/thead>\r\n
Legal framework<\/td>\r\nLaw No. 93 of September 19, 2019 and Executive Decree No. 840 of December 31, 2020, which regulates Law 93 of September 19, 2019, amended by Executive Decree No. 119 of April 27, 2023.<\/td>\r\nConsolidated Text of Law No. 22 of June 27, 2006, as organized by Law No. 153 of 2020 and Executive Decree 439 of September 10, 2020, which regulates Law No. 22 of 2006.<\/td>\r\n<\/tr>\r\n
Types of contractor selection procedures for infrastructure works, goods and services<\/td>\r\nTender process. Contracts exceeding B\/.5,000,000.00. The proposal is evaluated in two stages: compliance with technical requirements and, in the second stage, opening of economic proposals that met the technical requirements.<\/td>\r\nAs a general rule, two types of procedures apply: Best Value Tender (BVT), contracts exceeding B\/. 500,000.00. The aspects requested in the bidding documents are weighted in a single stage. Public Tender (PT). Contracts exceeding B\/. 500,000.00. Price is the determining factor, provided all technical requirements are met.<\/td>\r\n<\/tr>\r\n
Award<\/td>\r\nThe contract is awarded to the bidder that meets the technical requirements and presents the most advantageous economic offer.<\/td>\r\nIn BVT, the contract is awarded to the bidder with the highest score according to the weighting methodology, provided requirements are met. In PT, the contract is awarded to the bidder that meets all requirements and offers the lowest price.<\/td>\r\n<\/tr>\r\n
Claims<\/td>\r\nClaims may be filed before the General Directorate of Public Procurement and appealed before the Administrative Tribunal of Public Procurement.<\/td>\r\nClaims may be filed before the General Directorate of Public Procurement and appealed before the Administrative Tribunal of Public Procurement.<\/td>\r\n<\/tr>\r\n
Contracts<\/td>\r\nBoth are public contracts signed between a State Entity and a Private Party, endorsed by the Comptroller General, creating rights and obligations for both parties and serving a public purpose.<\/td>\r\nBoth are public contracts signed between a State Entity and a Private Party, endorsed by the Comptroller General, creating rights and obligations for both parties and serving a public purpose.<\/td>\r\n<\/tr>\r\n
Objectives<\/td>\r\nTheir purpose is the provision of public goods (infrastructure) and related services.<\/td>\r\nTheir purpose is the provision of public goods (infrastructure) and related services.<\/td>\r\n<\/tr>\r\n
Initiatives<\/td>\r\nBoth must originate from public sector initiative.<\/td>\r\nBoth must originate from public sector initiative.<\/td>\r\n<\/tr>\r\n
Resources<\/td>\r\nManaged through a trust structure.<\/td>\r\nUsually administered by the contractor through progress payments or interim financing.<\/td>\r\n<\/tr>\r\n
Financing<\/td>\r\nThe Entity does not require budget availability, as the private party undertakes the project and recovers costs through user payments (self-financed), except in co-financed projects where the State contributes.<\/td>\r\nThe Entity pays the contractor through its budget.<\/td>\r\n<\/tr>\r\n
Terms<\/td>\r\nLong-term contractual relationship, with a maximum of 30 years extendable for an additional maximum period of 10 years.<\/td>\r\nDuration is limited to the construction period and\/or service provision period.<\/td>\r\n<\/tr>\r\n
Oversight<\/td>\r\nIn both cases, contracts are overseen by the Office of the Comptroller General of the Republic.<\/td>\r\nIn both cases, contracts are overseen by the Office of the Comptroller General of the Republic.<\/td>\r\n<\/tr>\r\n
Approach<\/td>\r\nResults-oriented approach with the central objective of providing and maintaining a high-quality service for users in the long term.<\/td>\r\nApproach focused on compliance with technical specifications.<\/td>\r\n<\/tr>\r\n
Risk allocation<\/td>\r\nA substantial portion of risk is transferred to the private sector.<\/td>\r\nThe State shares risks with the private party.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/div>\r\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Legal Frameworks<\/span><\/h3>\r\n

Consult and download the regulatory base governing the PPP model in the Republic of Panama.<\/p>\r\n <\/div>\r\n\r\n

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\r\n <\/path><\/svg>\r\n Laws (Core Framework)<\/span>\r\n <\/div>\r\n \r\n
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\r\n Law No. 93 (2019)<\/strong>\r\n PPP Regime in Panama<\/span>\r\n <\/div>\r\n PDF<\/a>\r\n <\/div>\r\n
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\r\n Law No. 22 (2006)<\/strong>\r\n Public Procurement (Ordered)<\/span>\r\n <\/div>\r\n PDF<\/a>\r\n <\/div>\r\n <\/div>\r\n <\/div>\r\n\r\n
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\r\n <\/path><\/svg>\r\n Executive Decrees<\/span>\r\n <\/div>\r\n \r\n
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\r\n E.D. 840 (2020)<\/strong>\r\n

Regulation of Law 93<\/p>\r\n View Document \u2192<\/a>\r\n <\/div>\r\n

\r\n E.D. 119 (2023)<\/strong>\r\n

Amendment to E.D. 840<\/p>\r\n View Document \u2192<\/a>\r\n <\/div>\r\n

\r\n E.D. 439 (2020)<\/strong>\r\n

Regulation of Law 22<\/p>\r\n View Document \u2192<\/a>\r\n <\/div>\r\n

\r\n E.D. 58 (2025)<\/strong>\r\n

Latest Amendment<\/p>\r\n View Document \u2192<\/a>\r\n <\/div>\r\n <\/div>\r\n <\/div>\r\n <\/div>\r\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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