2023 Laws of Puerto Rico › TITLE TWENTY-SEVEN - Public Service (§§ 1 — 2641) › PART V - Regulation of Public Services (§§ 2601 — 2641) › Chapter 91 - Public-Private Partnerships Act (§§ 2601 — 2623) › § 2606 - Project inventory; desirability and convenience of a partnership

(a) Project inventory.— All government entities are hereby directed to submit to the Authority within a term not to exceed ninety (90) days as of the beginning of each calendar year, any proposal for partnership projects in connection with any function, service or facility for which the same is responsible under the provisions of its enabling act or any applicable special laws. Whenever possible, the Authority shall publish these proposals for partnership projects, including those chosen for said small scale projects, on its webpage and in a newspaper of general circulation. The list of proposals for partnership projects submitted by the government entity shall be part of an inventory of proposals for partnership projects that may be used by the Authority to prepare studies on desirability and convenience. Except as provided below, the Authority shall be required to conduct studies on desirability or convenience in order to commence procedures for the establishment of partnerships in connection with any one or all proposals received through this mechanism. The Authority may conduct studies on desirability and convenience regarding other functions, services or facilities not submitted as part of the inventory process established herein, which studies shall be considered by the corresponding government entity. The Authority may commence procedures to establish a partnership under such study, once the Government Entity includes such partnership in its project inventory.
Notwithstanding the foregoing, a government entity may submit proposals for partnerships or small scale projects, from time to time, for the Authority’s evaluation, even if such proposals have not been included as part of the annual project inventory provided for in the preceding paragraph.
(b) Study on desirability and convenience.— Before commencing the procedures to enter into a partnership, the Authority, with the assistance of the Bank, shall conduct a study on desirability and convenience to determine whether establishing such partnership is advisable. The scope of such study shall depend on the kind of project or function, service or facility under consideration for a partnership. The Authority shall consider, and insofar as applicable, shall include, as part of the study on desirability and convenience, the following points:
(1) A definition of the essential characteristics of the function, facility or service.
(2) A history, projections or both on the demand on use, the economic and social impact of the function, facility or service in its area of influence, and the profitability of the partnership.
(3) As to new projects, their technical and functional feasibility and an assessment of the existing data and reports referring to territorial or urban planning.
(4) Social feasibility, including an analysis on the cost/benefit to the Commonwealth and the social impact of the proposed project.
(5) A justification of the partnership modality expected to be used for carrying out priority projects, as established in § 2602 of this title, indicating the main benefits of the selected modality.
(6) Operational and technological risks involved in rendering the service or discharging the function or building and using the facility.
(7) The cost of the investment to be made and the economic and financial feasibility of the project or operation.
(8) An evaluation of the cost/benefit and the convenience of using public or private financing to render the service, discharge the function or develop or build the facility with a justification of the origin of such investment or financing, taking into account the possible loss of eligibility to receive federal funding for the project.
(9) The preliminary preparation of an analysis or identification of the environmental effects of the project or operation that proponents shall consider when analyzing risks in presenting their proposals and participating in a partnership. This study is not equal to an environmental impact statement, nor is it required at this stage to prepare any particular document required under the Puerto Rico Environmental Public Policy Act, §§ 8001 et seq. of Title 12. However, if the Authority should so deem pertinent, it may conduct such additional studies as it deems convenient and feasible to complete at this initial stage of the study on the desirability of establishing a partnership.
(10) A comparative analysis of the cost/benefit represented in allowing the government entity assume the responsibility for carrying out or continuing operations or for carrying out the building, repair or improvement, as opposed to channeling the operation, building, repair or improvement through a partnership, including its effect on public finances.
(11) Feasibility for businesses with local capital, nonprofit entities and cooperative unions to be able to participate in the procedures to establish a public-private partnership intended for building, operating or maintaining a facility or service under the partnership. Such study shall identify areas with the greatest potential for local entities, the measures that Government entities shall take, the function to be discharged by nongovernmental organizations in fostering the competitiveness of the entities comprising this sector, and any other actions that may further promote this participation without impairing the laws or the rules that regulate and guarantee the open market.
In the case of small scale projects, at the discretion of the Standing Committee on Small Scale Projects and without the need for the Board’s approval at this stage, the Authority may accept the study or studies conducted by a government entity or proponent in connection with said project; Provided, That the scope and depth of said studies meet the requirements of this chapter and are adequate to allow the Standing Committee on Small Scale Projects[sic] to determine whether or not it is advisable to establish such project as a partnership.
(c) Publication.— Studies on desirability and convenience for a potential partnership, including those chosen for said small scale projects, shall be published on the webpage of the Authority and such publication shall be notified in a newspaper of general circulation, prior to commencing the request for proposals process.
History —June 8, 2009, No. 29, § 7; Dec. 19, 2014, No. 237, § 4.