El Salvador’s legal reform could allow water PPPs

Published March 9th, 2017

El Salvador’s Minister of the Economy, Tharsis Salomón López Guzmán, has asked the national legislature to consider reforms to the country’s public-private partnership law (Ley Especial de Asocios Público-Privados) which would allow PPPs in water infrastructure.

The original law, passed in 2013, set the standards for PPPs in the infrastructure sector, but barred private finance in the procurement of essential public services, including water.

The reform would not allow those in charge of water procurement, such as the National Aqueduct and Sewerage Administration (ANDA) and municipalities to enter into concession arrangements for services, but would allow PPPs for the design, financing, construction and maintenance of water infrastructure works, including water storage systems, wastewater treatment plants, and desalination plants.

When the original law was passed, the Christian Democratic Party (PDC) had wanted private sector involvement to be allowed in the water sector, but was not able to gather enough votes.