Changes to RIGI: Amendments accepted by the Government for the large investment regime

Before the bloc heads closed in on the Bases Law debate, the provisional president of the Senate, Bartolome AbdallaAnnounced further changes to the vote, in particular to the Incentive Mechanism for Large Investments (RIGI), in order to safeguard the articles and avoid defeat.

The first amendment referred to Article 165: it would no longer refer to “any territory” but to “Forest industries, infrastructure, mining, energy and technologywhich meets the expected requirements.

Meanwhile, an additional approval will be given local suppliersince the commitment for this case would be “Minimum 20% of the total investment amount“, as long as “the offer is available and under market conditions in terms of price and quality.” Said minimum percentage must be maintained during the construction and operation phase.

Another important change will be in Article 196 – Exchange Incentives -, which Limits settlement obligation in the exchange market Foreign currency that comes from the export of products generated by the projects. This will rise to 20%, two years after starting the investment; 40%, after three years; and 100%, from the age of four.

Now, when it comes to the collection of exports declared as “long-term strategic exports” for the purposes of the exception to the obligation to enter and settle in the exchange market, the time limits indicated in the previous paragraph will be calculated in the following manner:

• Twenty percent (20%) After one (1) year counted from the date of implementation of the Single Project Vehicle (VPU),
• Forty percent (40%) after termination Two (2) Years counted from the date of implementation of the VPU;
• One hundred percent (100%) after expiry Three (3) Years Counted from the date of commissioning of the VPU

On another point, article 205 was modified to allow the shares, quotas or social partnership of the VPUs linked to RIGI be able to Be the subject of a legal guarantee business. “Shares, quotas or social partnerships of VPUs linked to RIGI may, without authorization, be subject to a pledge, assignment in the form of guarantee, trust and/or any other form of legal guarantee business with financial entities, credit organizations, local or foreign. The application must be made before the authorization, and the latter must be informed within fifteen calendar days after the event,” the text instructs.

In this Article 175 Through amendments to the first three paragraphs, it is proposed to “moderate the VPU’s approval process to prevent projects from being rejected due to issues of strict formal rigor or failing to meet the already very short deadlines the Administration has been tasked with.”

In particular, from the submission of the application for the Subscription and Investment Scheme by the VPU (or, where applicable, from the submission of any supplementary or explanatory information required by the applying authority for this purpose), the applying authority shall have a maximum period of Forty five (45) days The following will be issued approving or rejecting them. In addition, the administrative act of approval or rejection of the membership application must be notified within five business days of its issuance.

The applying authority may request additional information or clarifications that are necessary to analyse the feasibility and viability of the project based on its characteristics and may also schedule a hearing with representatives of the VPU. The planning period of 45 days from the date of notification of the request for additional information until the date of submission of the required additional information or clarifications shall be suspended.