On February 10, 2020, the Senate of the Dominican Republic approved the Public Private Partnerships (PPP) Law, establishing a legal framework for the development of infrastructure projects jointly between the State and local and foreign companies.

This step is essential for both the Dominican Republic and the region, because with this milestone there is now a legal framework for PPPs in all countries of Central America + DR which, in addition to boosting public investment, allows to think of an industry of regional scope in the medium and long term.

The PPP legislation of the Dominican Republic will be guided by principles of selection of projects similar to those of other Latin American nations including economic-financial impact analysis and Value for Money (VfM) according to the estimation and allocation of risks. Likewise, the law allows both public and private initiative. In this last modality, also known as unsolicited proposals, the legislation specifies that proposals will be received only in the sectors previously identified by the authorities. In this case, the entities in charge will be the National Directorate of Public-Private Partnerships and the National Council of Public-Private Partnerships.

The law establishes a maximum term of 40 years and a restriction to renegotiate the allocation of risks during the life of the contracts in order to preserve the VfM.