Private-Public Partnerships Projects Are Being Developed In Honduras

Lawyers J. Humberto Medina-Alva and Claribel Medina with the support of Guadalupe Martinez Casas, have advised clients in PPP projects regarding infrastructure in Honduras. In this note they resume about de PPP process in Honduras and applicable law.

"The Law for the Promotion of the Public -Private Alliance (PPP Law) has been in force in Honduras since September 2010 and its bylaws since February 2011. It replaces the concessions law and introduces a much more expedite procurement for the management, development and execution of public works and services through PPP contracts entered between the State and a private entity.

This law ensures an assertive legal framework to national and foreign investors who wish to invest in infrastructure and/or services in the country.

The law creates an independent and autonomous entity (Coalianza) which is in charge of managing and executing the PPP projects, aided by a monitoring and supervisor entity called Superintendencia of PPPs.

The form in which a private public partnership may be executed allows different legal settings, which may be structured through participation contracts; joint ventures; trusts; etc. And the procurement process may be under a local or international bid or contest or through any other competent process.

The law also offers investors an arbitration procedure to solve any conflict deriving from the law itself or resulting from the award of the PPP contract.

A great advantage of this law is that private public initiatives may come either from the public or private sectors. Meaning that, initiative and proposals of PPPs for services or public works may be brought up to Coalianza by both private enterprise and the government. Potential...