On the night of November 25, 2025, two-thirds of the Congress of the Republic approved Decree 21-2025, which amends the Law on Partnerships for the Development of Economic Infrastructure (Decree 16-2010). This legislation governs Public-Private Partnerships (PPPs) in Guatemala.
With these reforms:
- The approval process for PPP contracts is streamlined by removing from congressional approval those projects that do not require public debt or involve public services (such as health, water, or education).
- The law now allows PPP projects to be proposed as unsolicited proposals.
- The scope of eligible economic infrastructure projects is broadened by eliminating restrictions on projects in education, health, and water.
- New procedures are established to enhance transparency and oversight.
These reforms open the door to new opportunities for both economic and social infrastructure projects that can foster Guatemala’s development. Decree 21-2025 is pending ratification, enactment, and publication to come into effect.