Summary.
The draft bill amends Article 2 of Law 93 of September 19, 2019, concerning the scope of the public-private partnership framework. The amended article covers the Central Government (Gobierno Central), autonomous and semi-autonomous entities in the non-financial public sector, municipalities, and commercial companies in which the State owns at least 51 % of the share capital. It also provides that the framework would apply to contracts entered into by those bodies and by commercial companies in which the State owns at least 51 % of the shares.
The amended article excludes the Panama Canal Authority (Autoridad del Canal de Panama), Social Security Fund (Caja de Seguro Social), National Bank of Panama (Banco Nacional de Panama), Savings Bank (Caja de Ahorros), Agricultural Development Bank (Banco de Desarrollo Agropecuario), National Mortgage Bank (Banco Hipotecario Nacional), Agricultural Insurance Institute (Instituto de Seguro Agropecuario), and Superintendency of Banks of Panama (Superintedencia de Bancos de Panama). It also excludes public security, medical health and official education services, along with concessions for the extraction of metallic minerals.
Within that general scope, the draft bill expressly authorizes the National Institute of Aqueducts and Sewers (Instituto de Acueductos y Alcantarillados Nacionales) to structure, award and carry out public-private partnership projects for drinking water production, conveyance, treatment, storage and transmission systems, as well as wastewater collection and treatment systems. The authorization requires the contractual purpose to be strictly limited to the design, financing, construction, expansion, rehabilitation, technological equipment and comprehensive maintenance of physical and hydraulic infrastructure.
The contractual purpose may also include the supply, management, calibration and operational replacement of automation, bulk metering, concealed-leak detection and telemetry technologies. It further covers specialized technical operation of auxiliary pumping systems, energy optimization of drinking water treatment plants, and operational sludge management. Contracts made under this special authorization would not transfer original ownership of public assets or title to rights over water resources.
The National Public Services Authority (Autoridad Nacional de los Servicios Públicos, ASEP) would retain its powers to regulate, exercise higher-level oversight and set the tariff structure applicable to end users. To be completed and valid, contracts under this investment arrangement would require countersignature by the Office of the Comptroller General (Contralorla General), in accordance with the Public Procurement Law (Ley de Contrataciones Publicas). Article 2 of the draft bill reiterates the amendment to Article 2 of Law 93 of September 19, 2019; Article 3 provides for the law to take effect on the day following its publication in the Official Gazette (Gaceta Oficial).
The public bodies named in the draft bill and the drinking water supply, sanitation, hydraulic infrastructure, metering and automation technology, and private investment sectors have a connection to its proposed provisions.
What it proposes.
- Scope of the public-private partnership framework.
- Drinking water and wastewater projects of the National Institute of Aqueducts and Sewers.
- Permitted purposes and conditions of contracts under this arrangement.
Who it would affect.
- The Central Government, autonomous and semi-autonomous non-financial public sector entities, and municipalities.
- Commercial companies with State ownership of at least 51 %.
- The National Institute of Aqueducts and Sewers and contractors for authorized projects.
- End users of the services covered.
Key points.
- The framework would cover the Central Government, specified public entities, municipalities and commercial companies with State ownership of at least 51 %.Art. 1
- The amended article retains the listed exclusions for institutions, services and concessions.Art. 1
- The National Institute of Aqueducts and Sewers would be authorized to undertake public-private partnership projects for drinking water and wastewater systems.Art. 1
- Contracts would be limited to physical and hydraulic infrastructure, metering and automation technologies, and specified specialized technical operations.Art. 1
- Contracts would not transfer original ownership of public assets or rights over water resources.Art. 1
- The National Public Services Authority would retain its regulatory and tariff powers, and contracts would require the Comptroller General’s countersignature.Art. 1
- The draft bill reiterates the amendment to Article 2 of Law 93 of September 19, 2019, and sets the effective date as the day after publication.Arts. 2-3