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Public-Private Partnerships, commonly referred to as PPPs, are collaborative agreements between government entities and private sector companies to finance, construct, operate, or maintain public infrastructure and services. In Lima, Peru, PPPs play a vital role in addressing infrastructure needs such as transportation, healthcare, sanitation, education, and energy. The primary aim is to leverage private sector efficiency and capital while delivering public goods and services. Peru has established a comprehensive legal and regulatory framework to ensure that these projects bring value to the public while protecting both public and private interests.
Engaging in a PPP project in Lima involves navigating complex legal, regulatory, and contractual requirements. A lawyer with expertise in PPPs can be invaluable in various situations, including:
Having legal support ensures that your interests are protected, your project meets all legal standards, and you can effectively navigate the often-overwhelming PPP process in Lima.
Peru’s PPP framework is primarily governed by the “Legislative Decree No. 1362” and its associated regulations, as well as guidelines from the Agency for the Promotion of Private Investment (PROINVERSIÓN). Some key aspects of the PPP legal landscape in Lima include:
A PPP is an agreement where a private company and a government entity collaborate to finance, build, operate, or maintain public infrastructure or services. In Lima, PPPs are used for projects like highways, water treatment plants, hospitals, and schools. The law sets out the process for selection, contracting, and oversight of these partnerships.
The Agency for the Promotion of Private Investment (PROINVERSIÓN) is the main institution in charge of promoting and overseeing PPP projects in Lima and throughout Peru.
Yes, foreign companies are allowed to participate in PPP projects in Lima, either directly or through joint ventures with local firms, provided they comply with Peruvian law and the specific project requirements.
Common sectors for PPPs include transportation (roads, airports, ports), energy, water and sanitation, health, education, and telecommunications.
PPP projects usually go through these stages: project identification and prioritization, feasibility studies, structuring and risk allocation, bidding and selection, contract negotiation, financial closure, execution, and monitoring.
Risks are allocated based on which party is best able to manage them. Typical risks include construction, financing, operation, demand, regulatory changes, and force majeure events. The contract will specify how each risk is handled.
Yes, Peruvian law requires transparency in PPP projects. Contracts and bidding documents are generally available to the public, unless they contain sensitive commercial information.
PPP projects in Lima must comply with Peruvian environmental laws, including conducting impact assessments and implementing mitigation measures. Social obligations often include stakeholder engagement and ensuring the project benefits local communities.
PPP contracts usually provide for arbitration, either within Peru or internationally, as the main method for dispute resolution. Some cases may go to Peruvian courts, depending on the nature of the dispute.
Required documents may include company incorporation certificates, technical and financial capacity evidence, power of attorney, draft agreements or consortia arrangements, and bids conforming to the specific requirements set by PROINVERSIÓN and relevant authorities.
Here are some key resources and organizations for those seeking information or assistance with PPPs in Lima, Peru:
If you are considering entering a PPP or have encountered an issue related to PPPs in Lima, here is how you can proceed:
Taking proactive legal steps early will help you avoid costly mistakes, ensure regulatory compliance, and protect your interests throughout the lifecycle of a PPP project in Lima.
