Law No. 47-20 on Public-Private Partnerships (PPP)

For several decades now, the Dominican Republic has formalized agreements between public and private institutions in order to provide, manage, or operate goods or services of public interest. Such is the case of the signing in 2001 of the Administrative Concession Contract under a Toll Regime for the Santo Domingo – Cruce Rincón de Molinillos Highway, between the Ministry of Public Works and Communications (MOPC), representing the Dominican State (ED), and the company Autopistas del Nordeste, C. por A. (AdN). In this agreement, the latter received a toll concession for 30 years for the construction of the Santo Domingo-Samaná highway, having contributed 80% of the funds for its construction, with the State providing the remaining 20%.

It is noted that the 106 kilometers of the highway were completed by mid-2008, and expanded in 2011 through another public-private partnership with the company Boulevard Turístico del Atlántico (BTA).

Currently, and specifically on February 20 of this year, Law number 47-20 was enacted to regulate public-private partnerships as a solution to the need for clear regulations governing this type of relationship, resulting from a competitive process to provide, manage, or operate goods or services of public interest. Thus, the General Directorate of Public-Private Partnerships was established, attached to the Ministry of the Presidency.

In the same vein, on September 1, 2020, the implementing regulation of Law number 47-20 was signed, aiming to prioritize private investments in the Dominican Republic.

All this entails the effective application of the necessary protocols for public-private partnerships; it offers confidence to the private sector to invest and innovate efficiently and effectively; and it enables access to more advanced technologies provided by the private sector, representing progress for the development and economy of our country.

Currently, the General Directorate of Public-Private Partnerships is composed of a collegiate body called the National Council of Public-Private Partnerships, and an executive official appointed by the President of the Republic. Among the functions of this directorate are regulating the initiation, selection, award, contracting, execution, monitoring, and termination of public-private partnerships, ensuring that such partnerships result from a competitive and transparent process and achieve an adequate distribution of risks.

The responsibility of these partnerships grants the State the prerogative to handle the risks of the private party, while also allowing it to earn revenue under its supervision and oversight. The private party receives remuneration from the State, accepts its supervision, and participates in the control of its performance.