Countries: Concept, Characteristics and
Mechanisms for Implementation in Colombia
Public Private Associations (PPAs),
are a mechanism by which the private
sector delivers a public service (utilities,
infrastructure, etc.) in alliance with the
public sector, interested in fulfilling its
goals by sharing risks, responsibilities
and benefits.
Nevertheless the term "shared risks"
usually means the risk is passed to the
private sector rather than shared. To this
point, one must bear in mind that the
public sector in developing countries has,
among other things, limited resources,
unqualified human personnel and
inefficient management systems. On the
other hand, the private sector has know-
how, experience, competence, innovation,
and well-trained people.
In summary, PPPs are considered a
useful tool to integrate and help the public
sector fulfill its social functions and to
attract foreign investment, thus improving
the economy in developing countries.
Peter Snelson
follows:
Delivery by the private sector is
designed to maximize efficiency and
innovation as well as minimize costs
and time overrun.
balance-sheet financing: Allows the
reduction of public sector borrowing
and enables the procurement of services
that are consistent with policies to
drive economic development; in this
case construction or reconstruction of
infrastructure triggers economic growth,
which is a tool for poverty reduction.
public utilities: This can be achieved
by providing services that would not
otherwise be available within existing
public budgets of developing countries.
Becomes a suitable tool to finance their
mechanisms to secure the correct use of
resources, whether public or private, to
be invested in infrastructure, housing
and utilities systems projects.
regulated by National Decree 1467 of
2012 and modified through Act 1682 of
2013.
Public Private Partnerships are
defined, in Article 1° of Act 1508 of
2012, as follows: "The Public Private
Associations are an instrument to bind
private equity, that materialize in a
contract between a public/state entity and
a natural person or legal private entity,
for the provision of public goods and its
related services, that involves the retention
and transfer of risks between the parties
and the mechanisms of payment, related to
the availability and level of service of the
infrastructure and/or service."
possible to say that PPPs in Colombia are
of corporate law for Pinilla, Gonzalez & Prieto. His main area of
practice is related to civil and commercial law.
& Prieto Abogados, where he focuses his practice on civil law,
commercial contracts, real estate transactions, business and
corporate law.
Av calle 72 no - 6-30 piso 14
Bogota, Colombia
jalzate@pgplegal.com
pgplegal.com
Rodriguez