Peru: The PPP Law has been amended

03 Oct 2024    2 minute read

In brief

On 2 October 2024, Legislative Decree No. 1691 was published, amending the Public-Private Partnership (PPP) Law (Legislative Decree No. 1362) and Legislative Decree No. 1543 (Legislative Decree that establishes measures to improve project management and private investment promotion processes).

Contents

Below, we share four key points about Legislative Decree No. 1691 and the changes it introduces.

  1. It strengthens the position of ProInversion, which, among others, assumes an active role in the following aspects: executing the acquisition or expropriation of land and clearing obstacles in the projects; issuing reports on the content, support and application of clauses in PPP contracts; executing agreements to provide technical assistance to public entities during the execution of the contracts; and, when serving as OPIP, proposing modifications to the Technical Solution of the projects, as long as the changes are based on further studies and aim to comply with the service levels, with the favorable opinion of the entity that owns the project.
  2. Regarding contractual modifications, subject to the Regulations, it establishes the possibility of executing addenda that apply special rules or procedures, considering differentiated criteria applicable in emergency situations declared by the entity in charge of the respective Project.
  3. It made the binding nature of the opinions issued by the Ministry of Economy and Finance (through the General Directorate of Private Investment Promotion Policy) official for all phases of the promotion process, except for the Planning and Programming phase.
  4. It modified the definition of PPP to specify the link between the payment of the agreed remuneration and the fulfillment of the service levels or the availability of the infrastructure (availability payments). The scope of this provision will be developed in the Regulations.

Finally, the Ministry of Economy and Finance and Proinversion must respectively approve and/or issue amendments to the Regulations of the PPP Law and update the guidelines and methodologies for the promotion and development of private investment in PPP and asset projects, the guidelines for the allocation and quantification of risks in PPP contracts and the Financial Structuring and Standard Contract Guide.

We invite you to review the comparative table of the amendments to the aforementioned law at the following link.

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We hope this information is of relevance to you and your company. Please do not hesitate to contact us if you require any advice in this regard.

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