Decree No. 98-2016 Amending Articles of the Public-Private Partnership Law

To amend Article 7 of Decree No. 143-2010 of August 11, 2010, published in the Official Gazette La Gaceta on September 16, 2010, containing the LAW FOR THE PROMOTION OF PUBLIC-PRIVATE PARTNERSHIPS, amended by Decree No. 30-2016 of April 7, 2016 published in the Official Gazette La Gaceta on April 16, 2016, which shall read as follows:

CONTRIBUTIONS OF THE PUBLIC ADMINISTRATION.- Within the Public-Private Partnership (PPP) Regime, the State and in its case the municipalities, may assume commitments in a firm manner, provided that such commitments are of a certain and known amount, and their contributions within the Public-Private Partnership (PPP) model which the parties elect, may be made by the following means:

• 1)

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• 2)

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• 3)

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• 4)

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• 5)

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• 6)

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  ....and, 8) .... The State and the municipalities must not commit public funds to finance private investors, nor grant guarantees for this purpose, notwithstanding the Contract may provide for contributions of funds from the State or municipalities, for reasons of public interest and for the benefit of the State, of the municipalities or of the user.

To amend Article 4 of Decree No. 30-2016 of April 7, 2016 published in the Official Gazette La Gaceta on April 16, 2016, which shall read as follows:

PROCEDURES FOR EXEMPTIONS.- Requests for exemption for operational purposes must be presented by investors, private operators, concessionaires, single-purpose corporations or other trusts mentioned herein and must be processed through the Ministry of Finance (SEFIN), which must incorporate the Opinion from the supervisory companies of the operators of each project, in order to ensure that the lists of goods and services to be exempted contain a relationship with the aforementioned works and services; procedure and authorization that must be subject to the applicable legal framework. The Ministry of Finance (SEFIN), must cancel ex officio the tax benefits granted in this Decree, if improper use or abuse in the enjoyment of the same is proven by the investors or private operators to the detriment of the treasury; and the proceeding must be transferred to the Tax Administration for it to proceed with the liquidation and collection of the taxes and rights that ceased to be collected, plus the administrative, civil and criminal sanctions that legally correspond.