Law on the Promotion of Public-Private Partnership

This Law is of public order and social interest. Its purpose is to manage and regulate the contracting processes that allow public-private participation in the execution, development and administration of public works and services, enhancing the country's investment capacity in order to achieve the integral development of the population.

For the purposes of this Law, the following terms shall be understood as follows:

• 1)

  RISK ALLOCATION: Determination of which of the parties must bear the consequences of certain facts occurring that have been defined as a risk of the delegable project, work or service;

• 2)

  COMMISSION FOR THE PROMOTION OF PUBLIC-PRIVATE ALLIANCE (COALIANZA): A State institution responsible for managing and promoting projects and processes to carry out the Public-Private Alliance (APP);

• 3)

  REGULATORY ENTITIES: The branches of public administration responsible, based on their functions and legal competencies, for the control and oversight in the provision of public services and execution of infrastructure referred to in this Law;

• 4)

  SECTORAL ENTITIES: The entities of public administration whose functions and competencies include formulating, planning and/or establishing policies in relation to a specific sector of Public Administration;

• 5)

  SOCIAL FUNCTION: The function fulfilled by the State through the Public-Private Alliance (APP) by developing economic and social activities that contribute directly or indirectly to the welfare of the population; framed within this Law;

• 6)

  PRIVATE INITIATIVE: Models of public-private participation, in which private parties may propose projects of public interest to the Public Administration, to be executed and financed, in whole or in part, by the private sector and under the supervision of the Public Administration;

• 7)

  PUBLIC-PRIVATE ALLIANCE (APP): A scheme of collaboration or common effort between the public and private sectors, national and international, that adopts multiple models, establishing rights and obligations, determining and distributing risks among the parties; and,

• 8)

  NATIONAL PUBLIC INVESTMENT SYSTEM: A system that consolidates information on public investment projects, under the administration of the Commission for the Promotion of Public-Private Alliance (COALIANZA).

Public-private participation contracts must be subject to the following principles:

• 1)

  Legal security as a principle that recognizes the purpose of Law in the public-private relations that arise as a product of this Law;

• 2)

  Efficiency and/or effectiveness in public investment processes; Fiscal responsibility in the execution and administration of contracts perfected on the basis of this Law, attention to the State's or Municipalities' capacity to pay to assume the financial commitments derived from their execution, without compromising the sustainability of public finances, nor affecting the provision of services that are rendered on a regular basis; Optimization of resource use, by which a public service must be provided by the supplier that can offer higher quality at a given cost or the same quality results at a lower cost, while maximizing user satisfaction with the service; Promotion of competition seeking to ensure effectiveness, efficiency and lower costs in the provision of infrastructure and public services, as well as to prevent any anti-competitive and/or collusive act; All activities of the Public-Private Alliance are public and subject to strict accountability, as well as acts that imply fiscal commitments for the State and effects on users; Economic and financial sustainability of public-private participation projects; Balanced distribution of benefits and risks in contracts; Implementation of processes that allow the participation and strengthening of municipal governments in the design, evaluation and oversight of projects with regional and local inference, making use of any of the community participation mechanisms established in the Municipalities Law; 9) Respect for the interests and rights of the beneficiaries of public works and services, as well as the public and private entities involved in the execution of the projects; and, 11) Private participants must incorporate and maintain during all phases of execution of Public-Private Alliance (APP) contracts, the best practices of social and corporate responsibility and in strict compliance with current environmental laws.

Public-private participation may adopt the following modalities:

• 1)

  Construction, and/or operation, and/or transfer, and/or maintenance of public works and/or services;

• 2)

  Expansion of existing public works and/or services;

• 3)

  Total or partial provision of a public service, preceded or not by the execution of a public work;

• 4)

  Execution of a public work, with or without provision of public service, for leasing or rental by the State;

• 5)

  Administration as a fiduciary of assets, services, accounting systems, computer systems, programs or development projects, credit contracts, among others; and,

• 6)

  Any other modality that allows carrying out a Public-Private Alliance (APP) within the framework of this Law. Natural or legal persons, national or foreign, who intend to be part of a Public-Private Alliance (APP) for large-scale projects must prove to be of recognized prestige, experience, technical and financial capacity for their development.

The parties, within a Public-Private Alliance model, may organize themselves as joint venture, legal entities with or without profit purposes, participation contracts, management contracts, trusts or any other form or modality that proves suitable for the execution of works and/or provision of required services.

For the purposes of this Law, any of the following procedures may be used:

• 1)

  National or international public bidding;

• 2)

  National or international public competition; and,

• 3)

  Any other procedure that guarantees free competition. The procedures shall be developed in the specific terms and conditions established in the corresponding Conditions of Tender, which shall respect the principles of transparency, objectivity and publicity. The Conditions of Tender shall determine, among other matters, the requirements that bidders must offer, the type and amount of guarantees required of interested parties, the criteria for evaluation of technical, economic and material proposals and service provision conditions, the materials, equipment and services that the State offers, which must be expressed in the Conditions of Tender, with their respective budgeted values and the conditions of service provision. The execution of the work must be completed in the shortest time possible.

Within the Public-Private Alliance (APP) regime, the State and, in its case, the Municipalities may assume firm commitments, provided that such commitments are of certain and known amount, and their contributions within the Public-Private Alliance (APP) model that the parties choose may be made by the following means:

• 1)

  Cash contributions;

• 2)

  Technical studies;

• 3)

  Subscription of shares or purchases of other negotiable securities in the financial market;

• 4)

  Granting of certain public domain assets, which may consist of concessions, without transfer of ownership over them, including assets that may have been subject to expropriation for reasons of public utility and/or in accordance with Article 32 of this same Law;

• 5)

  Granting of permits and licenses for the performance of activities authorized as Public-Private Alliance (APP);

• 6)

  Temporary granting of rights over patrimonial assets of the State and, in its case, the Municipalities;

• 7)

  Contribution of services corresponding to the State; and,

• 8)

  Other forms of contributions legally authorized, which are strictly framed within the purposes, principles and main objectives of this Law. The State and the Municipalities shall not commit public funds to finance private investors, nor shall they grant guarantees for this purpose; however, the Contract may provide for contributions of State or municipal funds, for reasons of public interest and for the benefit of the State, the Municipalities or the user.

Without prejudice to what may eventually be specified in each specific case, Public-Private Alliance (APP) contracts must observe the following basic contents:

• 1)

  Object of the contract and general conditions;

• 2)

  Term of validity of the alliance;

• 3)

  Schedule for project execution;

• 4)

  Rights and obligations of the parties;

• 5)

  Allocation of risks for the contracting parties, such as financial risks, general risks, operation risks and extraordinary risks attributable to unforeseen or supervening causes;

• 6)

  Guarantees required, when necessary;

• 7)

  Quality standards of the service, and/or of the work, and/or of the product and management indicators;

• 8)

  Right to subcontract;

• 9)

  Economic rebalancing clause, when necessary;

• 10)

  Stipulation of assumptions and grounds for extinction of the associative contractual relationship, before the expiration of the term of validity of the Alliance, attributable either to the private party and/or to the Public Administration;

• 11)

  Clause of fiscal stability and right to convertibility; and, 13) Arbitration Clause. Likewise, when necessary, contracts shall include:

  • 1)

    Legal protection of the contract, services and assets involved; attachments, seizures and insolvencies;

  • 2)

    Nature of ownership of assets and rights involved in the contract, their handling and transfer;

  • 3)

    Civil liability of the Contractor with respect to third parties and users of services, and mechanisms for resolution of these disputes;

  • 4)

    Consequences, allocation of political risks, legislative changes, macroeconomic behavior, suspension of operations;

  • 5)

    Interpretive clauses and definitions of terms;

  • 6)

    Assignment of rights, debt subrogation, compensatory actions, and division of contracts;

  • 7)

    Obligation to facilitate inspection, supervision and the work of the Superintendency in accounting records, operations and works;

  • 8)

    Obligations of accounting and corporate audits, quality certifications, operationality and environmental impacts and the consequences of these audits and certifications;

  • 9)

    Logical criteria to determine rates, prices and determination of acceptable costs, escalation clauses, payment conditions and delivery of works and/or services; and,

  • 10)

    Payment of taxes, fees and other fiscal charges.

The distribution between the parties of the risks and costs inherent therein must be agreed in accordance with what best suits the specific needs of the Public-Private Alliance (APP), which may include, among others, financial risks, commercial risks, operation risks and extraordinary risks attributable to unforeseen causes. In any case, the risks for both parties must be clearly defined and the participation of the State in the Public-Private Alliance (APP) must always be of limited responsibility to its contributions to the Alliance.

The award formula must be simple and consider only two components: one economic and one technical. The Economic Component must be limited to evaluating one of the following aspects: Who will provide the service in the best economic conditions without sacrificing the quality and efficiency in accordance with what is specified in the pre-established contracting conditions; Who offers greater benefits to the State; and, Who requires less co-financing or contribution from the State. The Technical Component must be limited to determining whether the technical proposal meets or does not meet the evident technical requirements determined in the contracting conditions. The Technical Component must include a re-evaluation, prior to the opening of economic proposals in Public Hearing, and the proposal of best convenience for the State must be selected. The Regulation of this Law and the Conditions of Tender must determine the manner in which the processes of reception, evaluation and the method of competitive selection of initiatives that have a public or private origin shall be carried out.

The Commission for the Promotion of Public-Private Alliance (COALIANZA) is hereby created as a Decentralized Entity of the Presidency of the Republic, with legal personality and its own assets, responsible for managing and promoting the projects and processes of Public-Private Alliances (APP). The Commission is made up of three (3) Commissioners elected by the National Congress, who shall serve for seven (7) years, and may be reelected for equal periods. The Commissioners shall be selected following the holding of Public Hearings from among a list of nine (9) candidates presented by the President of the Republic. To be a Commissioner, the following requirements must be met:

• 1)

  Be Honduran;

• 2)

  Be in the enjoyment of civil and political rights;

• 3)

  Be a university professional with extensive experience in managerial management and entrepreneurship, preferably with a Doctorate degree;

• 4)

  Have a minimum of ten (10) years of professional experience; and,

• 5)

  Not have outstanding accounts with the State and other requirements established in Article 250 of the Constitution. The Commissioners shall designate from among themselves who shall exercise the Presidency of the Commission for the Promotion of Public-Private Alliance (COALIANZA), which shall be rotated annually. The President of the Commission for the Promotion of Public-Private Alliance (COALIANZA) shall exercise its legal representation and is authorized to sign the contracts resulting from the award procedures, prior approval of their content by the President of the Republic in Cabinet. When required in accordance with Article 205, numeral 19) of the Constitution of the Republic, once signed, the contracts must be approved by the National Congress of the Republic.

The Commissioners shall cease in their functions by any of the following circumstances:

• 1)

  By resignation;

• 2)

  By removal made by the National Congress of the Republic by simple majority, with just cause and guaranteeing due process if applicable;

• 3)

  By warrant of arrest or declaration of convicted defendant becoming final; and,

• 4)

  By physical or mental incapacity.

The Commission for the Promotion of Public-Private Alliance (COALIANZA) has the following functions:

• 1)

  Manage exclusively the contracting processes that allow public-private participation in the execution, development and administration of public works and services of interest to the State, both at national and local level;

• 2)

  Coordinate with State Secretariats, autonomous institutions, Regional Development Councils, municipalities, decentralized entities or organs and other State agencies, the management of all authorizations, permits, licenses and other requirements to make the execution of projects viable technically, operatively and financially;

• 3)

  Coordinate with other internal instances of Public Administration, the necessary actions so that within public investment projects those that qualify within prioritized areas are selected;

• 4)

  Collaborate with municipalities in the evaluation of projects submitted for programming for incorporation into the National Public Investment System;

• 5)

  Monitor the projects, works or services provided through Public-Private Alliance (APP) models, in coordination with regulatory entities;

• 6)

  Provide advisory services and collaboration to Local Governments and other State entities, in matters of promotion of private investment, prior to the submission of projects for viability analysis;

• 7)

  Ensure that Public-Private Alliances (APP) are in harmony with the Objectives and Goals of the Country Vision and the Plan of the Nation;

• 8)

  Guarantee the implementation of the activities included in the relationships that give rise to the alliances;

• 9)

  Approve the internal regulations that are necessary for the better functioning of the Commission;

• 10)

  Propose to the Executive Branch the draft regulations necessary for the application of this Law;

• 11)

  Approve the Budget and Annual Operating Plan;

• 12)

  Authorize the contracting of audits, and must examine and approve the reports generated by such audits;

• 13)

  Examine and rule on the reports requested or submitted to it by the Executive Secretariat;

• 14)

  Approve the appointment, contracting and termination of Commission personnel;

• 15)

  Set appropriate directives and guidelines for the Executive Secretariat;

• 16)

  Adopt within the sphere of its powers, all measures deemed pertinent to fulfill its objectives and resolve all matters that do not expressly correspond to the Executive Secretariat to resolve; and,

• 17)

  The other functions that may be assigned to it by current legislation or the regulations that are issued. The Commission shall inform the National Congress semiannually of the progress in the development of its activities.

The Executive Secretariat of the Commission is hereby created, which shall assist the Commission and is responsible for all administrative matters assigned to it. The Secretariat must be headed by an Executive Secretary who must meet as a minimum the same requirements as the Commissioners. The Executive Secretary shall be selected from among a slate of three proposed through a public competition conducted by a national or international company of recognized prestige, whose contracting process shall be carried out by the Commission. The Executive Secretary shall act as Secretary of the Commission with voice but without vote.

In addition to those specifically designated in this Law, the following are attributions of the Executive Secretary:

• 1)

  Act as Secretary of the Commission;

• 2)

  Plan, control and direct the activities of work teams integrated for the fulfillment of the Commission's functions;

• 3)

  Administer the assets assigned to the Commission for the Promotion of Public-Private Alliance (COALIANZA);

• 4)

  Provide the Commission with the information requested of it regarding the legal relationships and other matters authorized by the Commission for the Promotion of Public-Private Alliance (COALIANZA);

• 5)

  Submit to the consideration of the Commission the draft proposals of Public-Private Alliance (APP), for its approval or disapproval;

• 6)

  Submit to the consideration of the Commission the draft proposals of the Annual Operating Plan and Budget; and likewise detail the Work Plans and corresponding implementation, as well as the Monitoring and Evaluation Plan;

• 7)

  Ensure that accounting records are maintained in accordance with the requirements of the Court of Accounts and the laws of the Republic;

• 8)

  Manage purchases and acquisitions that are permitted by the Commission; framed within this Law;

• 9)

  Authorize and sign contracts for the acquisition of goods and services, in accordance with the amounts authorized by the Commission;

• 10)

  Appoint and remove office personnel in accordance with applicable regulations;

• 11)

  Develop and implement the measures as well as the practices that are necessary for the Commission to be able to fulfill the functions assigned to it by this Law;

• 12)

  Comply with the goals set by the Commission in its Annual Operating Plan; and,

• 13)

  The other matters that, according to the Commission, are necessary to adequately fulfill its functions.

The position of Executive Secretary of the Commission for the Promotion of Public-Private Alliance (COALIANZA) shall be freely removable by the Commissioners by agreement of the majority. CHAPTER IV OF THE PROJECT CYCLE

Public-Private Alliance (APP) initiatives may originate from both public and private sources. In the public sphere, the following may act as initiators: State Secretariats, Autonomous Entities, Municipalities, Municipal Associations, Regional Development Councils, and the Commission for the Promotion of Public-Private Alliance (COALIANZA).

FEASIBILITY ANALYSIS OF PUBLIC INITIATIVE PROJECTS: Projects to be incorporated into the National Public Investment System under public-private participation models must undergo a prior viability examination, which includes cost-benefit analyses and feasible financing schemes, to ensure the execution of the delegable project, work, and/or service. These analyses must be conducted by the Commission for the Promotion of Public-Private Alliance (COALIANZA). Public Administration entities or bodies that constitute themselves as initiators of Public-Private Participation projects must request collaboration from the Commission for the Promotion of Public-Private Alliance (COALIANZA) in their formulation prior to their incorporation into the National Public Investment System.

SELECTION OF PUBLIC-PRIVATE PARTICIPATION PROJECTS: The Commission for the Promotion of Public-Private Alliance (COALIANZA) shall determine which public initiative projects may be executed under public-private participation schemes, from among those that form part of the planned National Public Investment System.

The presentation, evaluation, declaration of admissibility, and selection of public and/or private initiative projects shall be carried out through the special provisions and general principles contained in this Law and developed in its Regulations. CHAPTER V OF REGULATORY ENTITIES

SCOPE: The Superintendence of Public-Private Alliance (APP) is hereby created as a collegial entity, attached to the Superior Audit Tribunal, with respect to which it shall function with technical, administrative, and financial independence. The regulation, control, and monitoring of the performance of works and provision of services through Public-Private Alliance (APP) is the responsibility of the sectoral regulatory entities created by special laws for such purpose. In the event there is no specialized Regulatory Entity for the performance of a specific work or the provision of a particular public service, its regulation, control, and monitoring shall be the responsibility of the Superintendence of Public-Private Alliance.

The Superintendence of Public-Private Alliances is directed and administered by three (3) Superintendents. Their appointment corresponds to the Legislative Branch prior to the holding of a Public Hearing. The Superintendents are elected from a list of nine (9) candidates proposed by the President of the Republic, who selects them in consultation with different sectors of Civil Society. To be a Superintendent, one must meet the same requirements as those required to be a Commissioner of the Commission for the Promotion of Public-Private Alliance (COALIANZA). The Superintendents shall serve for five (5) years, and may be re-elected and shall be attached to the Superior Audit Tribunal (TSC).

The Superintendence of Public-Private Alliances has the following powers:

• 1)

  To control the provision and management of public services and infrastructure and the compliance with contracts and licenses to operate Public-Private Alliances;

• 2)

  To supervise the application of the standards concerning safety and technical procedures for measuring and billing, control and use regarding service interruption and restoration, as well as the quality thereof, to which service managers and providers must conform;

• 3)

  To prevent, insofar as applicable, anticompetitive, monopolistic, or discriminatory conduct among participants;

• 4)

  To supervise the quality of services provided through Public-Private Alliance (APP), in accordance with the standards defined in the respective contracts;

• 5)

  To apply the sanctions provided for in the contracts and/or in the applicable standards for services under licensing regime, respecting at all times the principles of due process;

• 6)

  To manage that administrative, civil, or criminal actions, including precautionary measures necessary to ensure compliance with the obligations of service providers in accordance with the provisions of this Law and the respective contracts or licenses, are promoted before the corresponding authority;

• 7)

  To issue regulations and procedures for the application of sanctions that correspond for violation of legal, regulatory, or contractual provisions, ensuring the principle of due process;

• 8)

  To request from service providers the documents and information necessary to verify compliance with this Law and its regulations, guaranteeing, where appropriate, the adequate protection of the confidentiality of information;

• 9)

  To submit annually to the National Congress a report on the activities of the year; and,

• 10)

  Such other functions as this Law and its Regulation may assign.

Financial and non-financial risks, guarantees, future commitments, and fiscal contingencies are determined by the State Secretariat in the Office of Finance (SEFIN), based on the evaluations and recommendations regarding the Fiscal Risk Analysis conducted by the National Public Credit Commission.

REGISTRATION AND DISCLOSURE OF STATE COMMITMENTS: The State Secretariat in the Office of Finance (SEFIN) is empowered to issue the corresponding provisions for the adequate registration of firm and quantifiable contingent commitments and guarantees executed under the Public-Private Alliance (APP) modality, in accordance with the normative framework of the Organic Budget Law and the Technical Standards of Public Credit. All guarantees and commitments accepted from the Public-Private Alliance (APP) by the Central Administration must be registered in the Debt Management System (SIGADE).

AUTHORIZATION OF LIMITS: The amounts and limits of firm and quantifiable contingent commitments assumed by the State in Public-Private Alliance (APP) contracts, calculated at present value, must be established in the formulation of Multi-year Budgets based on public debt sustainability analysis. The General Provisions of the Republic's Budget must establish the budgetary provisions or reserves necessary to cover possible claims for guarantees or commitments acquired in each corresponding Fiscal Year. A limit equivalent to five percent (5%) of Gross Domestic Product (GDP) is hereby established for all firm and quantifiable contingent commitments net of income assumed by the non-financial public sector in Public-Private Alliance (APP) contracts, calculated at present value. This percentage may be modified every three (3) years by the President of the Republic in Cabinet Council, after consulting with the State Secretariat in the Office of Finance, to ensure it is consistent with the country's capacity. CHAPTER II OF INTELLECTUAL PROPERTY PROTECTION

OWNERSHIP AND PROTECTION OF INTELLECTUAL PROPERTY: Those who promote a private initiative retain ownership of all documents presented throughout the procedure, which must be returned to them in the event that the same is not declared admissible and even at their own initiative for withdrawal from the evaluation process. Aspects of the private initiative that by their characteristics represent intellectual property of the initiator must be protected within the parameters established in the Copyright and Related Rights Law and applicable Treaties. The Regulation of this Law shall determine the scope of this Provision. TITLE V FINAL AND TRANSITORY PROVISIONS

The State Secretariats, Public Enterprises, and Autonomous Entities shall continue complying with the powers that the General Law of Public Administration or special laws assign to them. The Commission for the Promotion of Public-Private Alliance (COALIANZA) shall coordinate the development of projects that it approves as priority with the corresponding institutions.

The Commission for the Promotion of Public-Private Alliance (COALIANZA) is authorized to collect up to two percent (2%) of the value of each authorized project from the winning bidder thereof, as compensation for the services it provides. The Superintendence of Public-Private Alliance is also authorized to collect from private companies that execute public-private participation contracts a regulatory contribution to be fixed through the corresponding contract of up to one percent (1%) of the value of annual invoicing, after corresponding deductions for payment of sales tax. The funds obtained from such collections shall become part of a Trust Fund of which the Commission for the Promotion of Public-Private Alliance (COALIANZA) and the Superintendence of Public-Private Alliances shall be the sole beneficiaries respectively. The proceeds of such trust fund shall be distributed between both institutions proportionally to amounts collected, with the purpose that both cover their budgets. The provisions for the formation of this trust fund shall be developed in the Regulations of this Law. If there are remaining funds at the end of the Fiscal Year, they shall become part of a reserve within a trust fund that may be used, subject to approval by the President of the Republic in Cabinet Council, for research and development of new projects, rescue of projects in which programmed results have not been achieved, and defense expenses of the State in case of arbitral claims.

Private parties that provide public services through Public-Private Alliance (APP) schemes may pledge the payments they receive from operating the same. They may also transfer to third parties their position as providers of certain services, with prior authorization of the Superintendence of Public-Private Alliance.

The Commissioners, the Executive Secretary and support personnel of the Commission for the Promotion of Public-Private Partnerships (COALIANZA), the Superintendents of Public-Private Partnerships and the personnel of the Superintendency, are excluded from the Civil Service Regime. However, such personnel may register and benefit from the Social Security regimes and the National Institute of Retirees and Pensioners of the Executive Branch (INJUPEMP). Both the Commissioners, the Executive Secretary, as well as the temporary and permanent support personnel of the Commission for the Promotion of Public-Private Partnerships (COALIANZA), as well as the Superintendents of Public-Private Partnerships and the personnel of the Superintendency, are not subject to the salary limitations established for employees of the Executive Branch.

For the expropriation of property that is necessary for the construction of public infrastructure, the procedure set forth in the Property Law for Regularization on Grounds of Public Necessity must be followed. This declaration must be made by the Commission for the Promotion of Public-Private Partnerships (COALIANZA). The compensation value must be paid by whoever constructs the infrastructure work.

The Public-Private Partnership (APP) is exempt from the payment of all types of taxes, fees, property registration in its name and/or for the formalization of all contractual relationships that may be required for the realization of the projects.

To exercise the rights and obligations that arise from the legal relationships regulated by this Law, only authorization to provide a service or develop infrastructure, granted by the Commission for the Promotion of Public-Private Partnerships (COALIANZA), is required. Prior to the awarding of a project, the Commission for the Promotion of Public-Private Partnerships (COALIANZA) must have processed and obtained all permits, licenses, authorizations and other administrative acts required by the Central and/or Municipal Public Administration to operate the Public-Private Partnership (APP). Once the project is awarded, these must be transferred unconditionally to the Awardee.

The conflicts that arise from requests for Public-Private Partnerships (APP) initiated by private parties, as well as the award processes of Public-Private Partnerships (APP) and the associations of this type that are approved, including the challenge of the award processes, are mandatorily subject to Arbitration Procedure and under the rules that shall be specified for this purpose in the Conditions Document.

EXPRESS EXCLUSION: In accordance with the provisions of the State Contracting Law, final paragraph of Article 1, the processes regulated by this Law, as well as that related to its implementation, are not subject to the norms contained in the State Contracting Law.

The Commission for the Promotion of Public-Private Partnerships (COALIANZA) and the Superintendency of Public-Private Partnerships must be self-sustaining institutions. The State must provide the Commission for the Promotion of Public-Private Partnerships (COALIANZA) and the Superintendency of Public-Private Partnerships with the necessary funds to cover its budget insofar as the corresponding allocated fund for its self-sustainability has not been established in accordance with this Law. The Superintendency of Public-Private Partnerships replaces the current Superintendency of Concessions and Licenses. For this Fiscal Year, the Superintendency of Public-Private Partnerships shall function with the budget of the current Superintendency of Concessions and Licenses. The current Superintendent of Concessions and Licenses is ratified as one of the three (3) Superintendents of Public-Private Partnerships, for the remaining period for which he was elected. The personnel that currently comprises the Superintendency of Concessions and Licenses shall become part of the team of the Superintendency of Public-Private Partnerships, preserving their rights and being subject to periodic performance evaluations.

PERIOD FOR ITS REGULATION: The regulation of this Law must be issued within a period not exceeding sixty (60) days counted from its promulgation.

Legislative Decree No. 283-98 dated November 20, 1998, concerning the Law for the Promotion and Development of Public Works and National Infrastructure, is hereby repealed. However, those Public-Private Partnerships that are already in the process of execution and that have been contracted before the entry into force of this Law shall continue to be governed by the conditions agreed upon in the contracts and by the provisions contained in the Law for the Promotion of Development of Public Works and National Infrastructure, except in cases of extension, renewal or renovation of contracts, which shall be governed under this Law.

This Law shall enter into force from the day of its publication in the Official Gazette La Gaceta. Given in the city of Tegucigalpa, municipality of the Central District, in the Session Hall of the National Congress, on the eleventh day of the month of August of two thousand ten. JUAN ORLANDO HERNÁNDEZ ALVARADO PRESIDENT RIGOBERTO CHANG CASTILLO SECRETARY GLADIS AURORA LÓPEZ CALDERÓN SECRETARIAT To the Executive Branch. Therefore: Let it be executed. Tegucigalpa, M.D.C., August 17, 2010 PORFIRIO LOBO SOSA PRESIDENT OF THE REPUBLIC The Secretary of State in the Office of Finance. WILLIAM CHONG WONG Secretariat of Industry and Commerce MINISTERIAL AGREEMENT No. 852-2010 Secretariat of State in the Offices of Industry and Commerce WHEREAS: In accordance with Article 56 of Executive Decree Number PCM-008-97, reformed by Executive Decree Number PCM-002-2001, published in the Official Gazette La Gaceta, on April 23, 2001, it is the responsibility of the General Directorate of Economic Integration and Commercial Policy to formulate, execute and evaluate the policies of commercial, bilateral and regional integration, as well as to address other matters related to the resolution of disputes arising from the application and interpretation of the regulations of current trade treaties, and to direct bilateral, regional and multilateral commercial and investment negotiations, represent the country in the framework of the negotiations of the World Trade Organization and in other international commercial forums where treaties, agreements and, in general, matters of commerce and investment are discussed. WHEREAS: In the free trade agreement between the Dominican Republic, Central America - United States (DR-CAFTA) approved by Decree No. 10-2005 and effective as of April 1, 2006, the establishment of a list of national arbitrators is provided for. WHEREAS: In order to provide greater transparency, publicity and equality of opportunity in the designation of candidates to make up the lists of candidates for arbitrators, it is necessary to have a mechanism to integrate the list of candidates for arbitrators.