Public-Private Partnerships (PPP)

Public-Private Partnerships (PPP) are agreements between the government and private companies to build or improve infrastructures such as roads, bridges, hospitals, schools and others. Pursuant to this economic model, the private company finances, builds, operates, and maintains the project for a set period of time.

PPP Law in Panama

In Panama, PPP are subject to by Law 93 of 2019, which establishes the legal framework by which they are regulated. This law aims to promote investment in public infrastructure by creating clear guidelines for collaboration between the public and private sectors. It ensures that these partnerships are transparent and beneficial for both the government and private companies, helping to drive national development.

How do PPPs work

The government identifies a need and collaborates with a private company that finances and executes the project. In return, the company receives payment based on the success of the project, ensuring that it meets quality standards.

Benefits of PPPs

• Shared financing: The private company provides resources, easing the financial burden on the government.
• Increased efficiency: Private companies tend to be quicker and more effective in project execution.
• Shared risks: The risks are distributed between the parties, reducing the government's load.

PPPs are an excellent tool for improving public infrastructure, allowing the government to leverage private investment and enhance services for the community.

Need help in dealing with legal issues related to the PPP, contact ANORCO today for expert legal advice.