Importance of Public-Private Partnership (PPP) in the development of infrastructures.

Expertos en contratación pública en Panamá : Public Procurement experts in Panama

Governments worldwide increasingly rely on innovative techniques to effectively solve critical infrastructure projects such as transport networks and public services. Implementing Public-Private Partnerships (PPP) is a technique that has proved to be effective. As experts in Public Procurement in Panama, we have extensive experience in this type of alliance and its development in the local landscape.

What are Public-Private Partnerships (PPP)?

A Public-Private Partnership is a collaborative agreement between government entities and private-sector organizations. These partnerships aim to take advantage of the strengths and resources of both sectors to achieve common goals and provide public services efficiently and effectively.

These partnerships are crucial for governments facing budget constraints. However, they continue to meet the infrastructure demand of a rapidly increasing population. They allow governments to use private funds and expertise to improve infrastructure projects’ quality, sustainability, and timeliness. 

Public-Private Partnership in Panama

In recent years,  infrastructure development has become a prominent and necessary focus of action, especially in emerging countries such as ours, where production means are constantly developing and the population is growing.

Panama plans to execute infrastructure development by $3 thousand million through  Public-Private Partnership (PPP) contracts.

These projects include roads, power lines, and a Judicial City. The initiative seeks to promote investments and transcend administrations. The Private-Public Partnership offers technical assistance to comply with guidelines established in law. Public and multilateral entities are responsible for executing projects under this modality.

Among projects contemplated to be developed under the PPP figure are the Rehabilitation of the East and West Pan-American highway, Costanera view, and the expansión of the Centennial highway.

Efficiency in integral development.

PPPs also play a crucial role in encouraging economic growth. They indirectly promote economic growth by addressing essential infrastructure needs, thus improving the business’s efficiency and creating employment opportunities. A solid infrastructure is an indisputable foundation for a thriving economy.

These partnerships provide risk sharing, which leads to improved risk management. The private sector, with a profit motive, uses more efficient project delivery methodologies. It conveys a significant cost reduction and on-time delivery.

As experts in Public Procurement in Panama, we have verified firsthand how these partnerships solidify a collective vision with agreed-upon goals between all the parties participating in the development. They foster higher levels of responsibility and accountability in various procedures, including thorough investigations and comprehensive contract evaluations to guarantee alignment with the country’s legal and regulatory framework.

Besides, they ensure that infrastructure projects are better synchronized with public interests due to their durable nature which usually lasts more than a government mandate.

Building the future

The work of public procurement experts in Panama is implementing a sound legal and regulatory structure that protects the interests of all parties, ensures fair procurement procedures, and promotes the effective management of potential conflicts of interest.

In addition, an appropriate sharing of risks between public and private entities is critical to effectively implementing this initiative.

Since no universal PPP implementation model exists, each case depends on different aspects, such as the legal framework and project characteristics, stakeholders, and other unique considerations.

Despite these challenges, PPPs are a powerful tool to address infrastructure deficiencies and stimulate economic growth.


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