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Countries › Dominican Republic › Guide › 3. Investing › Public private partnerships in the Dominican Republic: Ley 47-20, the 40 year limit and the 2026 reform bill

Public private partnerships in the Dominican Republic: Ley 47-20, the 40 year limit and the 2026 reform bill

Last verified: 2026-10-30 · Status: Changing

Ley 47-20 lets private parties design, build, operate or maintain public assets under contracts of up to 40 years, from public or private initiative, run by the DGAPP. Originators of private proposals get a 2% to 5% scoring advantage and capped cost recovery. The Executive sent a reform to the Senate in 2026 to shorten the process; the 2020 text stays in force until a new law is passed.

USD figures use the Banco Central de la República Dominicana reference selling rate of RD$60.9007 per US dollar for 29 October 2026, the latest row in its published rate file on the verification date, rounded to the cent.

Key facts

Maximum contract term40 yearsLey 47-20 art. 69, as of 2026-10-30 · in force
Originator advantage in evaluation2 to 5 %Ley 47-20 art. 40 paragraph VIII, as of 2026-10-30 · in force
Cap on study cost reimbursement2 % of capital spendingLey 47-20 art. 40 paragraph XI, as of 2026-10-30 · in force
Cap on public commitments3 % of GDPLey 47-20 art. 55, as of 2026-10-30 · in force
Contribution to the DGAPP0.5 % of capital spendingLey 47-20 art. 66, as of 2026-10-30 · in force
Contribution to the contracting authority2 % of capital spendingLey 47-20 art. 65, as of 2026-10-30 · in force
Reform of Ley 47-20Filed in the Senate, per the DGAPP on 25 September 2026 Reform bill, as of 2026-10-30 · pending

The rule

1. The law covers the central administration, decentralized non financial bodies, social security institutions, non financial public companies and municipalities. Permits, licences and sector concessions that do not fit the PPP definition stay under their own law.Ley 47-20 de Alianzas Público-Privadas, art. 2 and paragraphs I and II, 2020-02-20 official text · verified 2026-10-30
2. Projects start from public initiative, with or without State transfers, or from private initiative, where a private party proposes the partnership to the State. Each is formed by a contract between the public body and the awardee.Ley 47-20 de Alianzas Público-Privadas, arts. 29 and 30, 2020-02-20 official text · verified 2026-10-30
3. The contract needs Congress approval if it involves, firmly or contingently, the sale of State property, a pledge of national revenue, public credit operations or tax exemptions.Ley 47-20 de Alianzas Público-Privadas, art. 31, 2020-02-20 official text · verified 2026-10-30
4. Any private party may propose a project at its own risk and full cost. The proposal is a request of grace that creates no right for the originator and no commitment by the State. Proposals on the same subject are assessed in order of filing, and one found not to be of public interest cannot return as a private initiative for two years.Ley 47-20 de Alianzas Público-Privadas, arts. 37 and 38 and paragraph, 2020-02-20 official text · verified 2026-10-30
5. In the economic evaluation the private originator gets an advantage of 2% to 5%, set in the bidding terms, and it may not add more than 2% of planned capital spending. The same range applies if the Council goes ahead as a public initiative and the originator bids.Ley 47-20 de Alianzas Público-Privadas, art. 40 paragraphs VIII, IX and X, 2020-02-20 official text · verified 2026-10-30
6. If another bidder wins, it reimburses the originator's study costs, up to 2% of planned capital spending. If the State takes up the project itself it may buy the studies at cost, within the same cap.Ley 47-20 de Alianzas Público-Privadas, art. 40 paragraph XI; art. 60, 2020-02-20 official text · verified 2026-10-30
7. The contract may only be signed with a company whose sole object is to carry it out, though that object may include taking part in the bidding. The bidding terms set minimum capital that cannot be withdrawn.Ley 47-20 de Alianzas Público-Privadas, art. 50 and paragraphs, 2020-02-20 official text · verified 2026-10-30
8. Bidders must show financial capacity through bank guarantees, letters of credit, first demand guarantees or trust guarantees, which must be irrevocable, unconditional, renewable and valid until the contract ends.Ley 47-20 de Alianzas Público-Privadas, art. 36 and paragraph, 2020-02-20 official text · verified 2026-10-30
9. The present value of firm and contingent public sector commitments under PPP contracts may not exceed 3% of estimated GDP for the year of signature, reviewed every three years through the budget law.Ley 47-20 de Alianzas Público-Privadas, art. 55, 2020-02-20 official text · verified 2026-10-30
10. Term may not exceed 40 years and must be justified project by project. Extensions must be foreseen in the bidding terms and contract and may not exceed half the agreed term.Ley 47-20 de Alianzas Público-Privadas, art. 69 and paragraphs, 2020-02-20 official text · verified 2026-10-30
11. Up to 2% of total capital spending under each contract goes to the contracting authority for administration and supervision, and up to 0.5% to the DGAPP, in equal yearly instalments over the contract.
Cost to do it: Up to 2.5% of capital spending in total.
Example: On capital spending of RD$3,045,035,000: up to RD$60,900,700 to the authority and RD$15,225,175 to the DGAPP. / On US$50,000,000: up to US$1,000,000 and US$250,000.Ley 47-20 de Alianzas Público-Privadas, arts. 65 and 66, 2020-02-20 official text · verified 2026-10-30
12. The authority may end the contract for breach, insolvency, grave public interest or national security reasons tied to serious failures, force majeure or false statements. It may also end it by unilateral decision, paying for the investment made and direct damage as the contract sets, but never for lost profit.Ley 47-20 de Alianzas Público-Privadas, art. 72, 2020-02-20 official text · verified 2026-10-30
13. Dispute mechanisms must be in the contract and may include renegotiation, conciliation, mediation and arbitration. Without an alternative mechanism, disputes go to the contentious administrative courts.Ley 47-20 de Alianzas Público-Privadas, art. 76 and paragraphs, 2020-02-20 official text · verified 2026-10-30
14. In the first five years of the project the awardee can opt for a refund of ITBIS on equipment, materials and inputs directly tied to construction, repair or expansion, and can seek accelerated depreciation. Both apply where the bidding terms and contract provide for them, through DGII.Ley 47-20 arts. 78 and 79; Decreto 434-20, art. 78 and paragraphs I and II of the regulation, 2020-09-01 official text · verified 2026-10-30
15. Ordinary procurement law does not apply to PPP projects unless the law says so.Ley 47-20 de Alianzas Público-Privadas, art. 92, 2020-02-20 official text · verified 2026-10-30
16. Non profit partnerships cannot involve State transfers above US$3,000,000 a year, or US$15,000,000 in net present value over the project life, with yearly inflation indexing allowed.Ley 47-20 de Alianzas Público-Privadas, art. 49 paragraph II, 2020-02-20 official text · verified 2026-10-30
17. PENDING. The DGAPP wrote on 25 September 2026 that the Executive had just filed a reform with the Senate. It describes shorter stages, a special route for less complex projects, options when one valid bid remains, a project preparation fund and projects to optimize public assets. The bill text was not found, and it is not law.Reform bill to Ley 47-20 (DGAPP article), not applicable, 2026-09-25 official text · verified 2026-10-30
PointPublic initiativePrivate initiative
OriginPublic bodyPrivate party, at its own cost
Right createdCompetitive processNone until award
Scoring advantageOnly for a prior originator that bids2% to 5%
Cost recoveryNot applicableUp to 2% of capital spending
Bar on refilingNot applicableTwo years if not of public interest

Public and private initiative compared

Worked example

  • A sponsor proposes a US$50,000,000 (RD$3,045,035,000) water plant. It spends on studies with no promise of award. If declared of public interest and bid out, it scores with a 3% advantage set in the terms, an edge that cannot exceed US$1,000,000 of capital spending. If another bidder wins, that bidder repays its proven study costs up to US$1,000,000 (RD$60,900,700).

Step by step

  1. Review the project bank on the DGAPP site for existing proposals.
  2. File the proposal with the DGAPP with the need, solution, analysis and fit with public priorities.
  3. Expect the DGAPP, Ministry and Council reviews set by Decreto 434-20, and the Council decision on public interest.
  4. Form a sole purpose company and bring guarantees for the bidding.
  5. Check whether Congress must approve the contract under art. 31.
  6. Negotiate an arbitration clause, since otherwise art. 76 sends disputes to the administrative courts.

Common traps

  • A private initiative creates no right. Budget the studies as risk capital.
  • Sector concessions in energy, mining or telecoms may fall outside the law under art. 2.
  • An early termination pays for investment and direct damage, not lost profit. Lenders should test this against debt plus equity returns.
  • Tax benefits apply only if the bidding terms and the contract say so, and tax exemptions can trigger Congress approval.
  • The reform could change stages and terms mid process. Check the Senate file before relying on the deadlines.

Sources

Related pages

Related: Dominican Republic country profile · live dashboard · central bank and release calendar · our posts on X

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