The law modernizes the concessions regime, creates the National PPP Agency (ANAPP) and opens a new bankable framework for private investment in infrastructure. The law is pending second debate and eventual constitutional review. It does not constitute legal advice applicable to a particular case.
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GOVERNING BODY New ANAPP (non-state public entity) replaces the National Concessions Council |
TERM Minimum 5 — maximum 50 years (art. 15) |
EXCLUDED SECTORS Energy concessions (Law 7200) and telecommunications (Law 8660) — art. 4 |
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BANKABILITY Step-in rights, guarantee trusts, pledges, minimum revenue (art. 46.v) |
PRIVATE INITIATIVE Reimbursement of costs and remuneration in bid evaluation (art. 44) |
FISCAL CEILING Limit on firm and contingent commitments at NPV, set by the Ministry of Finance (art. 14) |
What changes?
The Framework Law replaces and modernizes the regime of the General Law on Concession of Public Works (No. 7762). It creates the National Public-Private Partnerships Agency (ANAPP) as a non-state public entity with its own legal personality, replacing the CNC, with a board of directors composed of the ministers of Finance, Presidency and MIDEPLAN. It expands the PPP model to any public investment project —roads, railways, hospitals, water, education, airports, ports and services— except for the expressly excluded sectors. One of the most relevant new features is the new control regime: ANAPP is exempt from certain controls by the CGR (budget, approval of contracts and public servants regime), although the contractual appeals phase —objection and appeal against bidding documents and award— remains before the Comptroller’s Office (art. 53).
Why is it relevant for investors and financiers?
Article 46.v incorporates the typical mechanisms of international project finance: guarantee trusts, pledges over shares and credits, minimum revenue guarantees, information rights and direct notification to creditors, and intervention rights (step-in rights). Article 47 maintains exemption from tariffs, VAT and SCT for the project’s goods and equipment throughout the entire contractual term. Article 44 establishes a robust private initiative procedure with reimbursement of prefeasibility/feasibility costs and remuneration in the evaluation of the bid. Taken together, these elements place Costa Rica at the level of Chile, Peru and Colombia from the perspective of the international lender.
Points under debate and next steps
The file is expected to be returned to a prior stage before the second debate in order to introduce motions. The disputed points are the legal nature of ANAPP as a non-state public entity; the scope of the exemptions from the Comptroller General of the Republic under art. 26 (the contractual appeals phase under art. 53 remains before the CGR); and the wording of the “remuneration” of the private initiative proponent. We do not rule out an optional constitutional consultation. The executive regulation will be strategic for defining the life cycle, timelines, minimum content of the bidding documents and the formula for the remuneration.
Practical implications
- Investors with innovative projects may structure private initiatives with financial support from the profile stage; the new law offers reimbursement of costs and “remuneration” in evaluation.
- National and international banks and DFIs find a bankable framework with the guarantee package under art. 46.v.
- The tax exemption under art. 47 improves CAPEX in USD and the borrowing capacity of the SPV.
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