Executive Decree No. 58, published on June 26, 2025 in Official Gazette No. 30309-B, amends Article 8 of Executive Decree No. 840 of December 31, 2020 — which serves as the regulation of Law 93 of September 19, 2019 — and had previously been amended by Executive Decree No. 119 of April 27, 2023.

Here is quick summary of the most relevant aspects of the decree:

Main Changes to Article 8

1. Mandatory Public Origin: All Public-Private Partnership (PPP) projects must originate exclusively from contracting public entities and be previously included in the Five-Year Investment Plan or the list approved by the Cabinet Council pursuant to Article 7 of the Law.

2. Projects Recommended by the National PPP Secretariat: Public entities may adopt projects presented by the PPP Secretariat upon recommendation from the Consultative Committee to the Governing Body, provided they align with sectoral development objectives or the entities’ strategic planning.

3. Final Decision on Execution: The final decision on whether a project will proceed as a PPP lies solely with the contracting public entity.

4. Interinstitutional Collaboration: Public entities may enter into joint agreements — such as partnerships, corporations, trusts, or other legal mechanisms — and define the scope, participation structure, and delegation of authority among themselves to develop PPP projects.

5. Four-Phase Project Procedure:

• Phase 1: Pre-Feasibility and Initial Approval: Includes project identification, pre-feasibility analysis, initial technical report, review by the National PPP Secretariat, consultation with the Ministry of Economy and Finance (MEF), and a decision from the Governing Body (non-objection or objection with or without recommendations).
• Phase 2: Feasibility Analysis, Implementation Approval, and Tender Authorization: Covers final structuring, bidding documents, PPP contract, and annexes; review by the PPP Secretariat and MEF; final decision by the Governing Body, which may impose modifications.
• Phase 3: Tender and Preparatory Activities: Starts with the promotion and tendering of the PPP project by the public entity, with support from the PPP Secretariat; any adjustments to tender documentation must be reviewed and may require MEF’s fiscal assessment.
• Phase 4: Contract Execution: Begins with contract signing and Comptroller General endorsement; includes monitoring, oversight, and final reversal or liquidation of the project by the contracting public entity.

Effective Date
The amendment takes effect upon its promulgation in the Official Gazette, i.e., from its publication on June 26, 2025.

Executive Decree No. 58’s complete text (in Spanish) is available in the following link:

https://www.gacetaoficial.gob.pa/pdfTemp/30309_B/113170.pdf

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