With the approval of the Priority Road Infrastructure Law (LIVP), the creation of the Directorate of Priority Road Projects (DIPP) was contemplated, the entity in charge of maintaining and supervising the main highway sections of the country.
The regulations establish that the DIPP must be operational in July of this year. However, several procedures necessary for its operation are still pending, including the approval of the regulations, the budget structures and the evaluation of the priority road network.
During the forum “The urgency of implementing the DIPP”, organized by Fundesa on May 13, in which authorities and representatives of the private sector participated, the delays and the need for its implementation were addressed.
Carmen Abril, representative of the Council of International Transport Users of Guatemala (Cutrigua) and director of the DIPP, confirmed that, although the entity is not operational, the Ministry of Communications, Infrastructure and Housing (CIV) has awarded 22 processes using the article of the law that allows contracting by exception.
Abril indicated that there is a “lack of coherence” in the implementation of the regulations. As he explained, while the law is already used to award contracts through exception mechanisms, the management is moving slowly. “What is missing is the awareness that the DIPP law cannot be used to be an acquisition mechanism by exception and not technical and specialized institutionality,” he stated.
He explained that, of the processes awarded under the law, more than Q1,300 million correspond to contracts executed exceptionally by the CIV. “The criticism is not that the article is used, because it is an enabling tool to address the needs of the priority road network. The criticism is that if the law is alive to use that mechanism, it should also be alive to move towards the permanent institutionality of the DIPP,” he added.
Carlos Melgar, vice minister of Fiscal Transparency and State Acquisitions of the Ministry of Public Finance (Minfin), confirmed that as of April 17, 22 processes had been awarded under this modality. “Q1,338 million have been committed and awarded, especially to carry out road network maintenance contracts, construction of projects and road infrastructure,” he explained.
Regulation could be approved in two weeks
Abril explained that during the preparation of the regulations, corrections were proposed to the document, after the reviews carried out between different State institutions. As indicated, the process began with a proposal prepared by the public sector, which was reviewed at a technical table before being transferred to the board of directors for approval. “The public sector gives a proposal to the board for the regulation. It is reviewed at a technical table where all the representatives of the public sector are,” he stated.
Abril pointed out that, although the regulation was approved by the board, additional observations subsequently arose that delayed the process. “So, three or four months pass between when we do it like this or when we don’t do it like that,” he said.
He added that he hopes that the regulation can be resolved in two or three weeks, along with the hiring of the entity’s management. However, he pointed out that it is also necessary to establish a schedule to recover pending deadlines. “We have to sit down very consciously and think about the recovery schedule for expired deadlines,” he stated.
For her part, Claudia Cáceres, manager of the DIPP, assured that the lack of regulations limits the progress of other processes necessary for the operation of the entity. “We have this great milestone pending the regulation; it is limiting us from being able to do many other things,” he said.
Cáceres also questioned the slowness in the transfer of observations related to the regulation. As explained, the response from the Attorney General’s Office (PGN) was received on April 24 at the CIV, but it did not reach the DIPP until May 8. “There is no urgency in implementing the DIPP,” he stated. In addition, he indicated that, if there is priority on the issue, the observations should be transferred immediately to speed up the process.
They ask to reform the law
Vice Minister Melgar considered promoting reforms to the Priority Road Infrastructure Law, with the aim of strengthening the operating mechanisms of the DIPP. “It is a conversation that is intended to be had with legislators, think tanks and public entities that participate to think about transforming the legal nature of the law,” he indicated.
As he explained, one of the proposals is to modify the legal nature of the entity to convert it from a decentralized entity to a decentralized entity. “That would make the operational process much easier,” he said.
The vice minister added that the reforms would also contemplate improving multi-year budget programming to guarantee financial continuity for infrastructure projects. “The aim is to incorporate elements of significant multi-year programming to guarantee the financial continuity of the projects when they are already underway,” he explained.
Another of the changes proposed is to establish its own regime for human resources. The official explained that the law contemplates special rules for hiring personnel, although he acknowledged that the salary issue has generated debate. “It is even being suggested that whoever occupies the position of manager earns more than a minister,” he indicated.
Likewise, Melgar indicated that the aim is to strengthen contractual management and the records of prequalified companies for this type of modalities. He also mentioned that reorganizing the financial support of contractual operations is being analyzed so that the DIPP can directly assume contractual commitments and reduce operational dependence on the CIV.
Pending actions
Abril pointed out that several of the procedures established in the Priority Road Infrastructure Law have already expired, so he considered it necessary to recognize them in order to advance on the schedule. “We have expired deadlines behind us and we have deadlines that still remain in the future. First we have to situate ourselves in our real status; if we do not make that recognition we will not move forward,” he stated.
He indicated that the law establishes specific responsibilities and deadlines for different State institutions, including ministries and the Presidency of the Republic, but assured that some of these deadlines have not been met. “We need to identify them to be able to recover them, to then be able to make a work schedule with milestones,” he said.
The director added that one of the objectives is to make up for lost time so that the DIPP can be prepared for 2028. “We need to be completely ready in January 2028,” she said. In this context, he proposed three actions: identify delays, align the institutions involved and establish a schedule with those responsible. “There are responsibilities of the officials; the rest of us cannot do it. They have to do it,” he said.
Regarding the schedule, he commented that it must include times and actions to be carried out in the next 30 and 60 days. “It has to have public monitoring, responsible parties, and the actions must be traceable,” he explained.
Abril also questioned the slowness in administrative processes related to the DIPP regulations. According to him, the board approved the document since October of last year, but the process has taken more than six months. “We cannot have each decision or administrative approval for more than six months,” he said.
In addition, he compared that pace with the speed with which awards have been made under article 95 of the law. “Since January we have more than Q1,300 million awarded with the same DIPP law,” he stated.
Cáceres expressed concern about the perception that there is still enough time to implement the entity. “It worries me when I hear deadlines like January 2028 and it seems like there is a long way to go,” he indicated.
He reiterated that the DIPP must be 100% operational, with projects already assigned, in 2028. “In that stretch between July 2026 and January 2028, the evaluation of the road network must be carried out, which should have been in April, but we cannot do it as long as we do not have an assigned budget and personnel,” he said.