Finally, Panama has created the Public-Private Partnership Regime as a mechanism to encourage private investment and employment, following the steps of most of the countries in the region.
Public-Private Partnership known as PPPs, is a modality that adds up private capital, however sharing risks and resources with the main goal of generating, developing, improving, operating and/or maintaining public infrastructure particularly for public services.
Hence, PPPs are materialized through a long-term contract (up to 30 years) for the design, construction, repair, expansion, financing, exploitation, operation, maintenance, administration and/or supply for the contracting agency and/or public services' final users.
The law 93 of September 19, 2019 countersigned yesterday afternoon by the President of Panama creates a regulatory body (Governing Authority), a National PPP Secretariat, as well as an Advisory Council that will approve the PPP regime for a project proposed by public entities. As drafted, the law does not allow proposal of PPP regime from private parties.