Argentina's government has passed into law a public-private partnership (PPP) bill, which regulates contracts between the state as the employer and the private sector as contractor for the development of projects under this format.
The bill covers commitments between the public and private sectors, where a long-term partnership is built, with both agreeing to meet set goals and both benefitting, state news service Télam reported.
The objective of the PPP contract outlined in the bill is the design, construction, maintenance and financing of a certain infrastructure asset for the provision of public services.
The law was passed by decree 1203/2016, signed by President Mauricio Macri and chief of staff Marcos Peña, and was published in the official government gazette this Wednesday.
The bill was rubber-stamped by the senate on November 16, and it is intended to cover projects in infrastructure, housing, services, productive investments, applied research and technological innovation.
The mandate includes environmental controls and contractor responsibility, as well as sets the obligatory minimum proportion of domestic goods and services in public works at 33%. It also includes the creation of a bicameral commission for the control of contracts.
As outlined in a BNamericas Intelligent Series report , the PPP law comes at a strategically important time, bearing in mind that, in September, Argentina presented a national transport infrastructure plan worth about US$35bn, considered by authorities to be the most challenging in the country's history.