Public-Private Participation Regime

Benefits

Decree 045/013 establishes that the Executive Branch may grant the tax benefits provided for by the Investment Promotion Law (Law 16,906) to Public Private Participation (PPP) contracts.

Activities

One of the first applications developed based on this regime were construction, rehabilitation and maintenance works on routes, thus aiming to improve land connectivity in Uruguay.

Public-private administration contracts

Public Private Participation contracts are those in which a Public Administration entrusts a private person, for a period of time, a task that includes any of the following services: design, construction, maintenance, operation of infrastructure.

The following are examples where this regime can be applied:

– Road, railway, port and airport works;
– Energy infrastructure works;
– Waste disposal and treatment works;
– Social infrastructure works, (example: prisons, health centers, education centers, social housing, sports complexes and urban improvement, equipment and development works).

Main actors of the Public Sector:

Contracting Public Administration: it is the public body interested in the project.

Public-Private Participation Projects Unit of the Ministry of Economy and Finance (MEF): it is the office responsible for the registration, study, control and monitoring of projects.

National Corporation for Development (CND): non-state public legal entity in charge of advising at the stage of drafting contracts and promoting projects.

Office of Planning and Budget (OPP): Unit of the Presidency of the Republic in charge of the national public investment system that acts by coordinating public sector investment.

Court of Auditors (TC): control body in charge of monitoring the execution of budgets.

Hiring procedure:

Initiative that can be Public or Private.
2. Assessment.
3. Approval of evaluation studies (the Planning and Budget Office and the Ministry of Economy and Finance are involved).
4. Public call to interested parties through competitive methods.
5. Submission of offers according to pre-established requirements.
6. Study of offers.
7. Awarding of offers.

Guarantee.

Bidders must provide a guarantee of the maintenance of their offer prior to the opening of offers by deposit in cash or public securities, bond or bank guarantee, in national or foreign currency that the Administration must expressly determine in the specifications.
The successful bidder may apply the amount of the bid maintenance guarantee to the contract performance guarantee or proceed to a new constitution of the latter.

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