Brigard Urrutia
  April 8, 2020 - Colombia

Decree 513 of 2020

Measures are established for public investment projects that can be financed with resources from the General System of Royalties.

This decree applies to investment projects that, within the framework of the declaration of Legislative Decree 417 of March 17 2020, and a departmental and municipal public calamity, presented its funding through resources from direct allocations and 40% of the Regional Compensation Fund of the General Royalty System, after March 17 2020, and that are intended to address the events that led to the declaration of an Economic, Social and Ecological Emergency or to counteract its effects.

It will also apply for the verification of requirements of investment projects that, with the same purpose, intend to be financed with resources from 60% of the Regional Compensation Fund and the Regional Development Fund.

The stages corresponding to the formulation and presentation, feasibility, registration, prioritization, approval and implementation will be in charge of the territorial entities that will benefit from the resources. However, the National Planning Department -DNP- will define the mechanisms to guarantee the traceability of the project cycle.

The legal representative of the entity must comply with the responsibilities and obligations of the OCADs, Law 1530 of 2012 and the rules that regulate the cycle of investment projects.

As the budget of the General System of Royalties is cash, for the financing of these projects the territorial entity may only approve up to the amount of the effective collection, taking into account the commitments acquired, without in any case exceeding the appropriation assigned.

Therefore, territorial entities may, by administrative act, release the resources of investment projects financed with amounts coming from direct allocations or from 40% of the Regional Compensation Fund of the General Royalty System, provided that the previous project is no longer considered a priority.

Thus, from the presentation to the execution of the project, the entity shall register and evidence the required information in the DNP systems. Also, register the approved future periods.

The verification of compliance with the requirements of those projects that intend to use 60% of the resources of the Regional Compensation Fund and the Regional Development Fund shall be in charge of the OCAD and shall be carried out within two (2) working days following their submission.

It should be noted that financing will be available only regarding projects related to

  1. Health care and social protection.
  2. Agriculture and rural development.
  3. Food supply and water resources.
  4. Food assistance to the population affected by the causes of the emergency.
  5. Guaranteeing effective continuity and quality in the provision of public utilities to the community, as well as assuming the cost of public lighting.

However, territorial entities shall prioritize at least thirty (30) percent of resources for activities related to primary health care.

Similarly, they should seek the viability of assuming the costs associated with the provision of public lighting, through resources other than those derived from this tax. This includes the use of the resources of the General Royalty System only during the time of the emergency. For these cases, entities must exclude the collection of the corresponding tax from the bills of the public home electric service.

Also, the certification of compliance with the requirements at the beginning of project implementation will be the responsibility of the designated entity.

The OCAD of the Fund for Competition, Technology and Innovation -FCTel- of the General System of Royalties, within the framework of public, open and competitive calls, may approve those aimed at investment projects aimed at conveying the causes referred to in the issuance of Legislative Decree 417 of March 17, 2020. To this end, the Ministry of Science, Technology and Innovation will make adjustments to its processes, promoting the use of virtual tools and reducing the time needed for the approval process of these projects.

Finally, it is important to emphasize that everything related to the formulation, presentation and execution of investment projects that do not have special rules established in this legislative decree, should be referred to the general rules of the General System of Royalties, as applicable.

SEE DECREE 513 OF 2020

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