2.3.1 Integrating PPP governance principles into PPP Governance policies
A process, a methodology, and an institutional framework are thus the basic elements of a broader legal environment that PPP laws need to originate. But PPPs are only a part of that broader legal environment. Yet, they are a new part whose logic - based on the achievement of the investment option determining the best value for money - influences the same broader legal environment to which they are part. In fact, new elements characteristic of the PPP world may affect other modalities for carrying out public investment such as public works, outsourcing, and privatization.
This is due to the fact that the methodology introduced by the new PPP laws, which disciplines the investment decision process, concerns and serves to compare and evaluate also the other options. By that, PPP laws contaminate the way other options are procured and consequently contaminate an array of norms that transcend their boundaries. This is why each PPP law must not only be coordinated with that broader body of laws and regulation but the latter must also be updated to include principles and methodology of evaluation that derive from the PPP discipline. And the more the PPP modality is integrated into the investment decision process - which determines, the most valuable option for carrying out public investments - the more coordination new PPP laws must have with the entire legal system regulating public investment.
On the other hand, the same pre-existing broader body of norms may constitute an obstacle to the introduction of PPPs, for example by imposing separate tenders for construction and long term operation; prohibiting payments for public works that are credited against future budgets (which legally have to be agreed on annual bases, and cannot be committed in advance); limiting the transfer of control or ownership of public infrastructure or lender securities on the same.34 This is why new PPP laws must overcome the mentioned impediments by amending pre-existing regulation or through the introduction of prevailing norms.
Integration of public finance legal framework [Portugal, Lei n.º 91/2001, de 20 de Agosto, Lei de enquadramento orçamental Art. 16, 2] A avaliação da economia, da eficiência e da eficácia de programas com recurso a parcerias dos sectores público e privado tomará como base um programa alternativo visando a obtenção dos mesmos objectivos com exclusão de financiamentos ou de exploração a cargo de entidades privadas, devendo incluir, sempre que possível, a estimativa da sua incidência orçamental líquida. [Mexico: Acuerdo Secretaria de Hacienda Diario Oficial 9 Abril 2004] Las presentes Reglas se aplicarán sin perjuicio de lo establecido en la Ley de Adquisiciones, Arrendamientos y Servicios del Sector Público y su Reglamento; la Ley de Presupuesto, Contabilidad y Gasto Público Federal y su Reglamento; el Manual de Normas Presupuestarias, y demás ordenamientos que, por virtud de la naturaleza y alcance de los contratos de servicios de largo plazo, deban observarse. [Peru - Decreto Legislativo N. 1012, Art. 9] Sin perjuicio de las disposiciones establecidas en la presente norma, será de aplicación de forma supletoria, las normas vigentes sobre concesiones de obra de infraestructura y servicios públicos, tales come el Texto Único Ordenado de las Normas con Rango de Ley que regulan la entrega en Concesión al Sector Privado de las Obras Públicas de Infraestructura de Servicios Públicos, aprobado con el Decreto Supremo N. 059096-PCM y otras normas que resulten aplicables |
Checklist of laws and regulations to be coordinated with new PPP laws |
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Budget Law
Environmental Regulation Framework
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34 E.R. YESCOMBE, cit., pp. 31