Public Law in the Dominican Republic: A Guide for Companies in Their Relationship with the State (Part 1)

Public Law in the Dominican Republic constitutes the set of norms and principles that regulate the relations between the State, in its different manifestations and levels, and individuals. This normative framework ranges from constitutional provisions to sectoral laws and specific regulations, with a direct impact on the economic, social, and political aspects of the country. 

In a scenario where the State not only acts as a regulator but also as a contractor, partner, and even competitor in certain sectors, it is essential that companies and citizens understand the rules governing these interactions. Proper management of this area of ​​law allows public-private relations to develop efficiently, transparently, and legally, mitigating the risks of conflict while enhancing opportunities for collaboration. 

This article presents an overview of the Dominican legal framework applicable to the interaction between the State and the private sector, with particular attention to public procurement and public-private partnerships (PPPs), given their growing importance in the national economic dynamic. It also highlights the best regulatory compliance practices that companies should observe to ensure safe, sustainable, and legally compliant relationships with the Government. 

 

Regulatory framework of Public Law in the Dominican Republic 

The cornerstone of Dominican public law is the Constitution of the Republic , which establishes the country as a social and democratic state governed by the rule of law, founded on respect for human dignity, popular sovereignty, fundamental rights, and the separation of powers. Its essential principles include: 

• • • Principle of legality: all state action must be subject to the law and oriented toward the general interest, avoiding arbitrariness. 
    • Motivation of administrative actions: The Administration’s decisions must be duly justified, which prevents abuse and guarantees transparency. 
    • Legal certainty: State rules and actions must be predictable and stable, allowing individuals to understand, plan, and comply with the law. 
    • Publicity, impartiality, proportionality, and good faith: principles that inform administrative action, promoting consistency and fairness in the relationship with those governed. 
    • Protection of rights and access to justice: the constitutional order recognizes guarantees to protect citizens (access to public information, effective judicial protection, and State financial responsibility, among others).

Based on these constitutional principles, a set of laws has been developed that regulate specific aspects of the relationship between the State and individuals. Among the most relevant regulations are: 

• • • Law No. 247-12 on Public Administration: regulates the organization and operation of the Public Administration, promoting efficiency and quality in state management. 
    • Law No. 107-13 on the Rights of Persons in Their Relations with the Administration and on Administrative Procedure : guarantees the rights of citizens vis-à-vis the Administration and establishes the common administrative procedure. 
    • Law No. 200-04 on Free Access to Public Information: guarantees citizens’ right to request and receive information from the State, strengthening transparency and accountability. 
    • Law No. 47-25 on Public Procurement and Contracting: replaces Law No. 340-06 and modernizes the government’s procurement and contracting system, introducing more streamlined processes, strengthening transparency, expanding the use of digital tools, and consolidating the role of the General Directorate of Public Procurement (DGCP ) as the governing body. 
    • Law No. 47-20 on Public-Private Partnerships (PPP): establishes a framework for collaboration between the State and the private sector for infrastructure projects and services of public interest. 
    • Specialized sector regulations: in areas such as the environment, energy, telecommunications, transportation, tourism, and mining, which regulate specific sectors of the economy and establish obligations and opportunities for companies. 

Compliance with these provisions is essential for any actor interacting with the State, whether as a supplier, concessionaire, partner in a PPP, or beneficiary of administrative authorizations. Ignorance or noncompliance can result in sanctions ,  loss of business opportunities , or costly litigation. 

Public procurement and contracting in the Dominican Republic 

Public procurement is one of the most important pillars of public law, as the State is one of the country’s main purchasers of goods and services. Through these processes, institutions acquire supplies, contract works, and request services necessary to fulfill their functions. 

Law No. 47-25, enacted in July 2025, replaced the former Law No. 340-06 and establishes a uniform, modern, and safeguarded framework for government procurement and contracting. Its objective is to strengthen transparency, efficiency, and accountability in the use of public funds, reinforcing the role of the General Directorate of Public Procurement (DGCP) as the governing body of the system. This law enters into force 180 days after its enactment; having been enacted in July 2025, it will enter into force in January 2026, allowing a period of adaptation to the new rules. 

The law introduces new selection procedures and redefines thresholds, including different methods depending on the nature and value of the contract, as well as mechanisms for smaller purchases with enhanced traceability. Its main innovations include: 

• • • Greater transparency and traceability , with more publicized and auditable processes. 
    • Stricter sanctioning regime , which includes criminal consequences in cases of corruption. 
    • Inclusive and sustainable purchasing , with promotional measures for SMEs and actions aimed at sustainability.  
    • Digitalization of the system , through the strengthening of the Electronic Public Procurement System (SECP), the transactional portal, and the creation of online purchasing platforms. 
    • Regulation of conflicts of interest , strengthening internal controls and coordination with corruption prevention and prosecution bodies. 

Ultimately, public procurement under the new regime should be understood as a space for regulated engagement between companies and the State, aimed at meeting collective needs within the parameters of legality and transparency. For companies, this implies a higher level of due diligence and regulatory compliance, with the understanding that errors or non-compliance not only lead to sanctions or exclusions, but also limit their ability to effectively integrate into future public processes. 

Public-Private Partnerships (PPP) in the Dominican Republic 

Public-Private Partnerships (PPPs) are long-term collaborative agreements between a public entity and a private operator to design, finance, build, operate, and/or maintain infrastructure or services of public interest, with risk sharing and performance-based compensation. Law No. 47-20 establishes the legal framework for these partnerships, allowing for both public and private initiatives, and defines the role of the General Directorate of Public-Private Partnerships (DGAPP) as the technical and governing authority of the system. 

PPPs are primarily used in sectors that require significant investment and specialized know-how, such as transportation, energy, tourism, telecommunications, urban development, water and sanitation, and social infrastructure, among others. Their purpose is to maximize value for money for the state and users, ensuring quality and efficiency standards in the work or service provided. 

Key considerations for businesses 

Participating in a PPP is not simply signing a contract with the State: it involves assuming large-scale commitments, often lasting several years or even decades, where the company shares responsibilities with the Administration in the provision of public infrastructure or services. This requires a combination of strategic vision, operational capacity, and financial strength. In practice, participating in a PPP means preparing for a business model that is different from that of ordinary public procurement, with greater planning, compliance, and oversight requirements. Key considerations include:  

• • • Technical and financial capacity: assess whether the company (or consortium) can assume long-term investment, construction, and operation commitments. 
    • Rigorous contract structuring: Negotiate and understand clauses on risk allocation, payment mechanisms (fees, availability payments, mixed schemes), performance standards, penalties, and adjustment methods.
    • Governance and compliance: Maintain management, auditing, and compliance systems to meet contractual, labor, tax, environmental, and social obligations. 
    • Indicator management: Project profitability depends on meeting service and performance indicators; failure to meet these indicators can affect payment flows and reputation. 

PPPs offer opportunities to participate in transformative state-backed projects, but they require professionalism, strong governance, and a long-term focus.