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New Rules for the Procurement, Evaluation, Selection, Negotiation and Award of Participatory Public-Private Partnership Contracts in Puerto Rico

The Government of Puerto Rico recently announced a new set of rules to establish the guidelines and procedures for the adjudication of projects with the private sector through the Public-Private Partnerships (PPPs) model.

The PPPs are contractual agreements between a government agency and a private entity to provide for public works or services required in Puerto Rico during an established period of time. Depending on private sector innovation, there are models of PPPs that include one or more stages, including design, construction, operation, financing, and maintenance.

The new Puerto Rico PPPs Initiative seeks to:

  • Provide greater support to the economic development of the Island by promoting job creation and growth of local businesses.

  • Improve the infrastructure of the Island to increase the reliability of services, reduce congestion, provide routine maintenance and generally enhance the value of assets.

  • Improve safety and environmental performance.

  • Make infrastructure projects viable when the funds needed for development are not available in the treasury. 

This new process to establish PPPs will encourage and support programs that provide a consistent, transparent and stable environment for innovation and investment from the private sector.

The PPPs will be lined with a high degree of public interest; that is to say, the Government neither resigns nor yields its rights to receive efficient services, nor does it resign to the ownership of the public assets included in the Partnership Contract.

SOURCES: Puerto Rico Public-Private Partnerships Authority

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