preguntas frecuentes

APP public-private associations
What is an APP?

It is a business between a public entity and a private party, wherein the private party makes a public investment, realizes a profit, and returns it to the state in a given period of time.

Who should have the initiative for an APP?

Either the public entity or the private individual; conditions will depend on which takes the initiative.

What is a public-initiative APP?

In this case, the idea arises from a Public Entity, who should structure it and call a bid to find the private party to develop it.

What is a private-initiative APP?

The private party structures the idea, submits it to the Public Entity who will evaluate it and offer it to the general public to determine whether anyone should improve the conditions, with the originator having the opportunity to adjust.

How long can an APP be entered into?

They will have a maximum duration of thirty (30) years, including any extension. But if there were a prior favorable opinion by the National Council on Economic and Social Policy, CONPES, it may be longer.

Is there a minimum amount to enter into an APP?

Law 1508 of 2012, provides that projects may only be executed under Public-Private Association schemes when the amount to be invested is higher than six thousand (6.000) smmlv (legal minimum monthly salaries in effect).

When does one know whether an APP is more convenient or if instead the public entity should execute the works for its own account and risk?

Before entering into an APP, the Public Entity will compare the costs of directly executing the project against the costs of executing it under an APP.

Are there limits inasmuch as the type of project that can fall under an APP?

There is no limitation. Any project that provides public goods can be considered for an APP. Energy, Ports, Roads, Airports, Tourism, Sanitation, Jails, Telecommunications, and real state, among others.

What is the legal framework of the APPs?

Law 1508 of 2012 and national decrees 1467 of 2012, 100 of 2013, and 301 of 2014.

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