Enactment of the Law for the Promotion of Investment in Strategic Infrastructure for Development with Wellbeing
The new Law establishes a framework for structuring, financing and implementing strategic infrastructure projects through public, private and social sector participation.
The new Law establishes the legal framework applicable to the planning, structuring, development, financing and implementation of strategic infrastructure projects in sectors including communications, transportation, water, environment and sustainability, energy, health, education, industrial parks and national competitiveness.
Key elements include public, private and social sector participation through long-term contracting and mixed investment schemes; the use of special purpose vehicles to concentrate project investment, financing and execution; and an eligibility process based on technical, legal, economic and financial viability, as well as alignment with the National Development Plan.
The Law also creates the Strategic Planning Council for Infrastructure Investment, which will evaluate and coordinate projects, and establishes public tender as the general rule for their award. Strategic investment contracts may have terms ranging from four to forty years and may include financing mechanisms, risk allocation, performance standards and dispute resolution provisions.
In the energy sector, this new framework is intended to complement, rather than replace, the specific mechanisms established under the legislation applicable to hydrocarbons and electricity.
