Public-Private Partnerships are long-term contracts between one or more public entities and the private sector to create, develop, improve and/or maintain public infraestructure for the provision of public services. Under this contractual link, objectives and risks are shared, and service level standards are established, which must be met by the PPP contractor and are linked to the contractor's remuneration, which is totally or partially in charge of financing the construction, operation and maintenance of the public asset.
- Law 93 of 19 September 2019 and regulated on 31 December 2020 by Executive Decree No. 840
The Public-Private Partnerships are private modalities in which experiences, knowledge, equipment, technologies, technical and financial capacities are incorporated, for the creation, development, improvement, operation and maintenance of public infraestructure for the provision of public services.
- Promote the development of infraestructure projects for the provision of public services in strategic areas for the country (energy, transportation and logistics, telecommunications, social development, urban development, among others), for the benefit of the state and citizens.
- Encourage investment, social development and employment growth.
Classification of PPPs according to their financing:
- Self-financed: Those in which all project costs are recovered with the income received by the PPP contractor in charge of providing the infrastructure or public service.
- Co-financed: Those in which, for the economic sustainability of the project during all or part of the term of the PPP contract, financial resources are required from the State.