The ratification of Decree 29-2024, the Priority Road Infrastructure Act, established certain legal mechanisms to enable more rapid response to emergencies or during the rainy season on the country’s major highways. Specifically, Article 95 allows for the bypassing of certain standard administrative procedures so that work can begin immediately on the sections that require it.

According to Delfino Mendoza, a member of the infrastructure committee of Guatemala Moving Forward, although the Directorate of Priority Road Projects (DIPP) mandated by law has not yet become operational, the provision establishes mechanisms that would allow the Ministry of Communications, Infrastructure, and Housing (CIV) to award contracts more quickly.

“This methodology was designed to enable some contracts to be awarded quickly while the DIPP assumes its full functions, once it is fully operational. That is the purpose of Article 95,” he explained.

In that context, Mendoza noted that, on average, a bidding process can take between four and six months to formalize a contract and begin work. He explained that the procedure established by law requires that, once the project is approved, the CIV must prioritize it, develop a profile justifying the need and the urgency, and request an opinion from the National Coordination Office for Disaster Reduction (CONRED). 

“Once CONRED issues a favorable ruling, the project should be contracted within 15 days. That’s what the law says, because it’s essentially a direct contract. It’s a substantial difference in time,” he said. He added that this procedure does not bypass publication on Guatecompras and follows the standard process. He also noted that, had Article 95 been applied since last year, the first rehabilitated sections might already be visible.

For his part, Amador Carballido, director of Agexport, explained that infrastructure is directly linked to economic development. “Infrastructure drives development. A country with good roads, good bridges, and well-maintained, well-located, and sufficient borders, airports, and ports generates development,” he said.

“There are global indicators showing that infrastructure, when operational, contributes to a country’s gross domestic product (GDP) growth. Some estimates suggest an impact ranging from 2% to 10% of GDP,” he said. According to Carballido, the condition of roads directly affects economic activity. “For freight transport, imports and exports, tourism, and the mobility we all need to get to our jobs, having roads in good condition boosts productivity,” he noted.

Along the same idea, Herlindo Herrera, director of communications for the Logistics Association, noted that the deterioration of the road network has a direct impact on costs for the public. “The poor condition of the roads affects the economy of the entire population, in terms of expenses and costs—such as fuel and travel times—and ultimately shows up in supermarkets, where everything becomes more expensive,” he said.

He also explained that transportation efficiency has declined. “We used to travel at speeds of between 50 and 80 kilometers per hour; now we’re down to 40 or, sometimes, 30 km/h. This means we use more fuel, and as a result, freight costs are higher,” he said.

He added that this also affects logistics times. “The time it takes to travel from ports to the city or from border to border is getting longer. A 100-kilometer stretch, which in a country with good infrastructure could be covered in a day, can take up to two days here,” he noted.

Ongoing Projects

Among the projects being implemented under this mechanism are:

• Resurfacing of RN-02 Fraijanes–Santa Elena Barillas, Fraijanes, CA-01 East
• Resurfacing of CA-02 East El Jobo–Taxisco, Taxisco and Chiquimulilla, CA-02 East
  
• Resurfacing of CA-02 East Chiquimulilla–Las Lisas, Chiquimulilla, CA-02 East
  
• Resurfacing of the village of El Ingeniero–Quezaltepeque, Chiquimula and Quezaltepeque, CA-10
  
• Resurfacing of CA-10 Río Hondo–Gualán, Río Hondo and Gualán, CA-09 North
• Resurfacing of RN-17 La Cumbre–Niño Perdido, Morazán, CA-14
  
• Resurfacing of CA-01 West San Carlos Sija–Palogá, San Carlos Sija, CA-01 West
  
• Resurfacing of the Escuintla–Siquinalá road, Escuintla and Siquinalá, CA-02 West
  
• Resurfacing of the Retalhuleu–Coatepeque road, El Asintal and Coatepeque, CA-02 West
  
• Resurfacing of the Vigen–Huehuetenango road, San Bartolomé Jocotenango, CA-01 West

Reduced Timelines

Mendoza explained that the State Procurement Law (LCE) establishes procedures that can prolong project timelines. “For construction projects, the law requires engineering studies. Generally, government agencies do not have the staff or equipment to carry them out efficiently, so they end up hiring a contractor,” he noted.

This involves an initial call for bids for the studies, followed by separate calls for the construction work and supervision. “Let’s be optimistic: it might take four months, but depending on the scale of the project, it could take another six, eight, or ten months to complete the studies, and then we’d have to issue the calls for bids for the construction work and supervision. That’s two separate calls for bids,” he explained.

He reiterated that, given this situation, Article 95 provides for a different approach. “We’re saving ourselves the trouble of putting the studies out to bid and the time it takes to conduct them, because this is a design-build contract. The winning company must propose its solution, which is then approved by the Department of Roads or the contracting authority, and work begins immediately,” he said.

For his part, Carballido noted that the scope of the legislation extends beyond a single article. “In fact, the entire law—not just Article 95—has the potential to help, at the very least, speed up the processes of construction, maintenance, and improvement—even if it’s just patching potholes—of Guatemala’s major highways, such as the Central American routes,” he said.

As he explained, the law is based on three pillars. “First, to speed up the process so that repairing a road doesn’t take as long as it does today. It takes an excessive amount of time due to standard procedures, bureaucracy within the ministry, and, in some cases, the attitude of the supervising authorities. The combination of these factors results in very long wait times,” he said.

He added that it also allows for greater flexibility in contracting methods. “I can contract with companies through various mechanisms, which allows me to increase the amount of money I can use or for the company to contribute more resources, so the government doesn’t have to spend as much. I use different types of contracts that allow for a variety of arrangements,” he said.

As a third pillar, he highlighted the issue of transparency. “So, first we have speed, second we have procurement methods, and third, transparency to prevent corruption. The purposes and spirit of the law are embodied in these three principles,” he said.

However, he also addressed the results observed so far. “In implementing the law, we have encountered serious difficulties in achieving those objectives. Given the progress of the law, which was passed in 2024, we have very little to show for it—if anything at all—despite the time that has passed,” he concluded.

The DIPP is urgently needed

Mendoza pointed out that one of the main obstacles to implementing the law has been the lack of implementing regulations. “We’re falling back into the vicious cycle we’ve been stuck in: we’re not making progress on the regulations, yet we want to enforce the law without them. That complicates the situation,” he explained.

He noted that, although the regulations outline the general steps for emergency procurement, they refer to specific procedures set forth in a set of rules that has not yet been approved. “Even though it outlines the main steps for conducting procurement, it ultimately states that the procedures will be established in the rules, and as of today, those rules do not yet exist. This has caused the procurement process, even under this emergency regime, to be further delayed,” he said.

He added that implementation got off to a late start and is being adjusted as it goes along. “It started a little late, but it can still help. However, since there is no established procedure—because the regulations for the law haven’t been finalized—they’re making adjustments as they go. They’re not meeting the 15-day deadline set by the law; it’s taking longer,” he said.

In that context, he considered that one of the top priorities is to make progress on pending regulations and the planned institutional framework. “The urgent task would be to expedite not only the regulations for the Priority Road Infrastructure Act, but also the implementation of the DIPP’s operations, because that could facilitate the process,” he explained.

Herrera also warned about the lack of advance planning. “We always look forward to winter with concern, because there are landslides that haven’t been addressed since last year. If the rains are heavier, the problems will recur,” he said.

Potential sites

Mendoza explained that the identification of the sections to be repaired depends on a technical assessment by the Ministry of Transportation. “A specific example could be a bridge where cracks or scouring are detected, which could cause it to collapse with the first rains and a rise in the river’s water level,” he said.

He noted that other types of damage may also be considered. “The ministry identifies the problem, which could be a landslide, a subsidence, or even sections where the condition of the road—the pavement—is very poor. It then defines the project, justifies the emergency, and requests a ruling from CONRED to proceed with contracting,” he explained.

He added that the law specifies the types of roads that can be improved under this program. “It refers to the sections that fall under the DIPP’s jurisdiction, that is, Central American highways and specific routes in the metropolitan area,” he said.

Herrera highlighted the strategic importance of these routes. “Central American routes are key to trade, especially corridors like the CA-2, through which a large portion of regional trade flows,” he said.

Transparency is required

Mendoza pointed out that one of the factors affecting hiring timelines is the way the ministry has decided to implement the process. “I think that’s what’s delaying the ministry’s hiring, because it decided to make some hires using this methodology, which has been available since last year. Progress could have been made sooner, but since there is no established procedure due to the lack of regulations, some delays are occurring,” he explained.

He added that, in this context, additional steps have been taken to ensure transparency. “In an effort to ensure transparency, we end up taking extra steps because there is no established procedure,” he said.

As he explained, instead of accepting a single bid in a direct contract, they are now comparing multiple proposals. “They are not requesting a single bid, but rather asking for three bids—or however many there are—and selecting the most suitable one from among them. It’s a good way to ensure transparency, but it’s not required by law,” he said.

In that regard, he noted that this practice affects processing times. “On the one hand, it promotes transparency, but it slows down the process a bit. Cases aren’t being resolved within the 15 days required by law; they’re taking longer,” he said.

Action plan

Carballido outlined a three-phase action plan for road maintenance. “The first priority will always be to stabilize roads that are in poor condition, where there are landslides, obstructions, or a damaged bridge,” he explained.

He said that the second element is preparing for the rainy season. “In the case of winter, what we would be doing is focusing on repairing areas that are particularly at risk, so that when it rains, the roads don’t become impassable,” he said.

He added that the third component is the development of new infrastructure and the improvement of existing infrastructure. “The third element is to expand, improve, and build new or existing roads to increase their capacity and improve traffic flow,” he said.