On September the 2nd 2020, by means of the Decree N° 716, the “National Program for the Industrial Park Development” was created (the “Program”), aiming to promote land use planning, influence local productive planning, sustainable and inclusive development, encourage the local employment generation, and enhance synergies derived from common location.
Through Decree N° 68/2022 published on the Official Gazette on February the 2nd 2022, such Program was amended, introducing certain benefits tending to:
Finance studies for the creation, enlargement or regularization of industrial parks,
Finance works inside public industrial Parks or industrial parks jointly developed or managed by public and private entities (hereinafter, “Mixed Industrial Parks”) duly registered in the National Registry of Industrial Parks (“RENPI” for its acronym in Spanish),
Finance the establishment of companies in industrial parks that are duly registered in the RENPI,
Finance the productive capacity extension of companies already established in an industrial park duly registered in the RENPI,
Finance the acquisition of land by public and Mixed Industrial Parks duly registered in the RENPI.
Coordinate the execution of works outside industrial parks that require public works to be executed by national or local entities,
Todo otro proyecto que la Autoridad de Any other Project that the Enforcement Authority may consider convenient in order to reach the goals of the Program.considere oportuno incluir a los fines de cumplir con los objetivos del programa.
The first benefit, so called “Non-Refundable Contributions” (“ANR” for its acronym in Spanish), which may be applied by both Public and/or Mixed Industrial Parks if are registered at the National Registry of Industrial Parks, are eligible under the terms of the Program and have project approvals in its forms and conditions.
The ANR must be applied to the execution of infrastructure works outside the industrial parks, exclusively on Public and Mixed Industrial Parks, including the costs of the studies related to the creation, expansion and/or regularization of them that may be needed.
Each Park may have a one single ANR, and, for this, the applicant must fund by himself -or through a jointly and severally liable third party-, a minimum of the ten percent (10%) of the ANR amount, as a local counterpart, either in an in-kind or monetary contribution. However, this local counterpart will not be required to those who include on their project, policies with gender and diversity perspective.
The beneficiary must render accounts of the correct allocation of the funds received as ANR, as well as the local counterpart when requested, in the terms, forms and conditions established by the Enforcement Authority.
As a second benefit, the new Decree included the so-called “Loans with Rate Bonus”, through which up to fifty percent (50%) of the nominal annual interest rate of loans to be granted by financial entities with which they have entered into agreements to that effect.
This benefit will be applicable to Public or Mixed Parks registered at the RENPI for the expansion of its surface; Companies that wish to establish themselves in a Public, Private or Mixed Industrial Park registered at the RENPI; and to the Companies that, being already located in a Park, need to increase their productive capacity.
The registration of the Parks at the RENPI will be an elegibility condition to both benefits, and they must annually update the data recorded at the Registry, counting from the issuance date of the corresponding registration certificate. The same obligation will rule to those Parks that were already registered before the sanction of this Decree.
As a third kind of industrial parks development promotion measure, the new regime also includes the possibility for Provinces and Municipalities, when they have studies and proposals that show the convenience to perform infrastructure works outside the industrial parks but are necessary to provide public services or roads required to access Public or Mixed Industrial Parks, to file the project before the Enforcement Authority, that will send it to the National Industrial Park Observatory for its assessment and issuance of a recommendation about the feasibility and convenience of such petitions and the course of action that should be adopted for its execution.
As long as such works are considered to Benefit the companies established in the industrial park and stimulate the establishment of new ones, the Enforcement Authirity will coordinate actions -and even sign agreements- with national or local public entities with competence for the execution and financing of the works or the provision of the service.
Finally, about the criteria for granting the above mentioned benefits, the amendment also establishes that will be prioritized the petitions filed by Small and Medium Size Companies (“PYMES” for its acronym in Spanish) and petitions involving the following kind of projects:
that promote energy efficiency, incorporate the generation and use of renewable energy, effluent treatment, improvements in waste management, among other sustainability conditions.
development of Technological or Knowledge Industrial Parks, understood as those where the establishment of companies with a scientific and technological base are promoted, in an innovative environment, with high technology and links with the academic and research sector.
that incorporate gender and diversity policies, aimed at increasing gender participation in the administration of industrial parks as well as incorporating public works for maternity or other policies dedicated to that purpose This report should not be considered as legal or any other type of advice by Allende & Brea.
