Bill 721.

Summary.

Article 1 proposes adding Article 124-A to the Consolidated Text of Law 22 of June 27, 2006, which governs public procurement and was organized by Law 153 of 2020. The provision creates an exception to the twenty percent (20%) advance payment limit and the requirement to provide an advance payment bond. It would apply to contracts or agreements entered into by ministries, autonomous or semi-autonomous entities, or local governments with concessionaires of regulated electricity and drinking water public services.

To qualify for the exception, the contract or agreement would have to concern the extension of lines, networks and infrastructure serving a public interest and a social purpose. The projects would have to be intended to expand coverage of those public services in communities that lack them or have a verified deficit in access. The exception thus depends on the type of company involved as well as the purpose and intended beneficiaries of the works.

In those cases, the proposed article authorizes an advance payment of up to one hundred percent of the value of the works. The concessionaire would have to certify that the payment is indispensable to carrying out the project. That certification must be accompanied by prior technical justification issued by the contracting entity. The bill therefore conditions the advance on a technical explanation from the public entity and a certification from the concessionaire addressing why the payment is necessary for execution.

Performance of the works and protection of state funds would be guaranteed by the obligations inherent in the company's concession contract. The arrangement would also be subject to the oversight and sanctions regime of the National Public Services Authority (Autoridad Nacional de los Servicios Públicos). Every payment made under this arrangement would require prior control and endorsement by the Office of the Comptroller General of the Republic (Contraloría General de la República). These provisions accompany the exception to the advance payment limit and bond requirement with controls arising from the concession, public service regulation and prior review of payment.

Article 2 restates that the amendment consists of adding Article 124-A to the Consolidated Text of Law 22 of June 27, 2006, as organized by Law 153 of 2020. Article 3 declares the proposed law to be a matter of public order and social interest and provides that it would take effect on the day following its promulgation. The bill concerns the National Public Services Authority and the Office of the Comptroller General of the Republic, as well as ministries, autonomous and semi-autonomous entities, local governments, electricity and drinking water concessionaires, and communities designated to receive the works.