Center Graduate Research Associate Lisardo Bolaños, who previously worked with a think tank in Guatemala, was interviewed about ten P3 projects to be implemented in Guatamela, including highways, railroad, airports, ports and a gas pipeline. Guatemalan P3 Agency, ANADIE, is evaluating the feasibility of these projects.
Different analysts and local government organizations mentioned concerns due to insufficient information on the projects and insufficient information given to the public on what P3s are and what their advantages are, as well as insufficient information on how local governments may take advantage of P3s. Bolaños, based on the research done at the Center, mentioned that it’s important that Guatemala: (i) enacts a Chapter 11-like legislation to guarantee the continuous operation of the projects in case of problems; (ii) enacts legal reforms to favor the buy-out of these projects as an alternative to bankruptcy and renegotiations; and (iii) promotes the use of mechanisms to prevent renegotiations, such as Dispute Review Boards.
To read the full article (in Spanish) in Plaza Pública by Julie López and Miguel González Moraga, click here.