1. Is it fair to say that the biggest constraint on PPP
execution has been the way public capital enters projects during
construction, something this decree seeks to address? Are there
other constraints that you see playing a significant
role?
Yes, it is correct to say the biggest hurdle for these projects
was how the government paid its share. Previously, private
companies had to use their own money or borrow from banks to cover
the government's portion of the costs until the project was
halfway done or fully finished. This created high interest costs
and cash flow pressure.
Decree 312 fixes this by allowing the government to pay its
share in parallel with the private investor. As soon as a part of
the work is finished, the government pays its percentage.
