copy the linklink copied!2. Governance of OSITRAN

Mandate

The Supervisory Agency for Investment in Public Use Transport Infrastructure (Organismo Supervisor de la Inversión en Infraestructura de Transporte de Uso Público) was created in 1998 by Law 26917 to oversee private investment in transport infrastructure for public use, under the Ministry of Transport. In 2000, the LMOR placed OSITRAN under the PCM.

Law 26917 aims to promote transport development and the supervision of transport infrastructure for public use. The text states that OSITRAN’s mission is to regulate transport infrastructure, as well as to verify compliance with concession contracts, while impartially protecting the interests of the Peruvian state, investors and users.

At its creation, OSITRAN was given a mandate in airports, ports, roads and railways sectors. It was granted powers to supervise concession contracts, set and review tariffs and provide non-binding technical opinions on transport infrastructure of national scope, manage and issue regulatory instruments and establish and impose sanctions and corrective measures.

OSITRAN’s role, mandate and structure have changed over the years. In 2011, Law 29754 granted OSITRAN additional powers to supervise public passenger transport services of the Lima Metro. This is the only sector in which OSITRAN regulates passenger services, but without the ability to set and review tariffs, a ministerial competence. In 2017, the supervision of the country’s first waterway, the Amazonian Waterway, was added to OSITRAN’s portfolio.

Functions and powers

Law 26917 defines the main functions of OSITRAN as follows:

• Tariff-setting (with limitations).

• Supervision of concession contracts.

• Inspection and enforcement.

• Advisory role (issuance of technical opinions).

• Contract interpretation.

• Regulatory functions.

Institutional co-ordination

OSITRAN operates in a complex environment alongside many other public bodies. The regulator co-ordinates its technical work with other public administration bodies, such as the MTC and Congress. However, there are no overall regular and structured co-ordination mechanisms and interactions with other entities are often informal.

Given OSITRAN’s role in the management and supervision of public-private partnerships (PPPs), the regulator frequently interacts with the MTC and Proinversión. OSITRAN issues non-binding opinions on concession contracts. The MTC regularly (both formally and informally) requests technical support from the regulator. In addition, OSITRAN regularly interacts with CGR in matters relating to compliance with contract provisions and the oversight activities of the supreme audit authority. OSITRAN co-ordinates with Indecopi on aspects relating to tariff proposals submitted by APM Terminals (port infrastructure concessionaire) and for this purpose, Indecopi and OSITRAN have signed a co-operation agreement. In the case of legislative proposals submitted by Congress, there is no formal co-ordination mechanism in place. However, Congress may require OSITRAN to issue opinions or reports.

Independence

LMOR establishes OSITRAN as a public and decentralised body attached to the PCM with administrative, functional, technical, economic, and financial autonomy. OSITRAN produces its annual work programme independently. However, OSITRAN’s Strategic Institutional Plan (Plan Estratégico Institucional, PEI) has to follow the National Centre for Strategic Planning (Centro Nacional de Planeamiento Estratégico, CEPLAN) and the PCM general guidelines.

The regulator has technical independent to issue its regulatory decisions. Regulated entities can challenge the regulator’s decisions through administrative procedures. The only way to overturn final administrative decisions is through a judicial process. In addition, OSITRAN issues opinions on draft legislation, contracts and its modifications, based on its status of independent regulator. Independence and legitimacy in regulatory decisions is enhanced through the development of technical studies.

In June 2018, the Commission for Consumer Defence and Regulators of Public Utilities (Comisión de Defensa del Consumidor y Organismos Reguladores de los Servicios Públicos, CODECO) of Congress discussed a draft law to enhance aspects of institutional independence for economic regulators in Peru. As of August 2019, the draft law has not been proposed for discussion in Plenary.

Strategic and operational objectives

OSITRAN develops a four-year Strategic Institutional Plan (Plan Estratégico Institucional, PEI) that provides medium-term objectives. The current PEI is set for 2019-2022 and puts forward seven strategic institutional objectives (Objetivos Estratégicos Institucionales, OEI) (see Figure ‎2.1). The Board of Directors is charged with approving the PEI. The previous PEI (2016-18) had fifteen institutional objectives.

copy the linklink copied!

Figure ‎2.1. OSITRAN strategic institutional objectives, 2019-2022

Source: (OSITRAN, 2019[1]).

The PEI includes a “roadmap” (ruta estratégica) that prioritises strategic objectives and proposes indicators (see Table ‎2.4).

The National Centre for Strategic Planning (Centro Nacional de Planeamiento Estratégico, CEPLAN) establishes the process and methodology for developing the PEI. CEPLAN also oversees Peru’s National Development Plan. CEPLAN co-ordinates with OSITRAN and ensures that its methodology is followed. The last objective of the current PEI (Implement processes for disaster risk management) is mandatory for all public bodies as set by CEPLAN.

To achieve its institutional strategic objectives, OSITRAN develops Strategic Institutional Actions (Acciones Estratégicas Institucionales, AEI) and yearly operational plans (Plan Operativo Institucional, POI), which implement the PEI. The 2019-2022 PEI has 38 Strategic Institutional Actions, shown in Annex 2.A.

The OSITRAN Strategic Planning Commission sets the strategic objectives with inputs from external consultants. The members of the commission are: the President of the Board, General Manager, Supervision and Inspection Manager, Regulation and Economic Studies Manager, User Protection Manager, Legal Advisory Manager, and Planning and Budget Manager. Part-time Board members do not participate in the Strategic Planning Commission.

OSITRAN evaluates the fulfilment of the strategic objectives twice a year. Each department elaborates a report including indicators. The Planning and Budget Department (GPP) reviews this information and produces a final report, which is published on OSITRAN’s website.

Financial resources

As defined by LMOR, all sector regulators are financed by regulatory contributions levied on the incomes of entities that are under their jurisdiction. Contributions from the industry constitute nearly 90% of OSITRAN’s total budget. The contribution rate from industry is approved by the Executive through a Supreme Decree endorsed by the President of the Council of Ministers and MEF. The rate cannot exceed 1% of the total annual income of regulated firms deducting Peruvian Value Added Tax (IGV) and the Municipal Promotion Tax (IPM).

For OSITRAN, the effective rate of 1% has been in force since 1 January 2004 and has not been reviewed since this date. The contribution rate applies to all sub-sectors except Line 1 of the Lima Metro, where OSITRAN perceives an additional 1% to fund inspection of the provision of services.

Additional revenue can be collected from (OECD, 2016[2]):

• Financial interests (yielded by deposits).

• Interests or late fees derived from the regulatory contribution.

• Fines imposed on regulated entities for non-compliance with the concession contracts and regulations.

• Fees from public information requests under Peruvian Transparency Law.

• Sales of services.

In addition, additional revenues can be granted to OSITRAN by MEF if resources are considered insufficient. For example, the budget expenditure projection from January to December 2019 noted that the resources assigned for the year were insufficient. Therefore, two Presidential Resolutions incorporated additional funds to the regulator’s budget for a total of PEN 5 million, the maximum amount that can be added per year.

After an increase over the period 2015-17, the regulator’s budget declined by 14.8% in real terms between 2017 and 2018 (Table ‎2.5). According to OSITRAN, this is mainly due to the decrease in budget execution in previous years, taken into account by the MEF when deciding on budget allocations. Indeed, while budget execution was close to 100% in 2015 and 2018, it did not reach 80% in 2016 and 2017. The lower budget execution is explained by a change of the regulator’s leadership in 2017.

Managing financial resources

In 2015, the Government of Peru, through MEF, implemented a performance budgeting system for some government entities. OSITRAN has begun implementing this new system, which requires budgets to be aligned with the goals and objectives established by the institution in their strategic institutional plans (PEI) and operational plans (POI).

The execution of expenditures is carried out by budget period from 1 January to 31 December, based on the institutional budget approved for each year and rules issued by MEF. The budget process is co-ordinated with the MEF through a digital system. OSITRAN submits information via the online integrated administrative financial system (Sistemas integrados de administación financiera, SIAF) every year as part of Peru’s administration-wide performance based budgeting system.

The General Management and the Planning and Budget department co-ordinate the budget process. OSITRAN uses expected revenue to determine how much will be available to carry out operational goals set in the POI. Indeed, OSITRAN’s budget is determined ex ante based on a percentage fixed by law of the revenue projections of the regulated sectors rather than determined with a cost recovery principle.

The budgets for each departments are allocated once the Multi-annual Budget Allocation is defined by MEF, taking into consideration the prioritisation of the activities according to the POI and the historical performance.

OSITRAN is bound by several central government rules with regard to managing its financial resources:

• The budget is approved yearly by MEF and relevant budget issues have to be reported to MEF, under the public budgeting system.

• Staff members of OSITRAN are remunerated according to minimum and maximum limits fixed by Supreme Decree and endorsed by the Council of Ministers and the Minister of Economy and Finances. Current caps limit OSITRAN’s ability to attract and retain qualified professionals (see section Managing human resources).

• The PCM has decision over some budgetary allocations, including approval of trips abroad for institutional representation. The latter are currently limited by austerity measures.

• The Law of Financial Equilibrium (Ley de Equilibrio Financiero): Funds perceived directly from regulated entities are classified as “directly collected resources” (RDR), and not “ordinary resources” (OR) that mostly fund central government entities. Previously, agencies with RDR funds were allowed to keep surplus funds and carry them forward to the following year(s), while agencies with OR funds were required to return surpluses to the Treasury every year. Since 2017, the Law of Financial Equilibrium requires required surplus RDR funds to also be forwarded to the Treasury in order to promote higher budget execution across public entities. The law has been renewed for the 2018 and 2019 fiscal years. The funds transferred to Treasury may be re-incorporated into the entity’s budget the following year as additional public revenues (the latter is however capped at a maximum of PEN 5 million by MEF).

Managing human resources

Governing body and decision making

Decision-making process

The functioning of the Board of Directors is defined by a Board Resolution. It sets the minimum content of documents that departments must submit to the Board before meetings, the roles and responsibilities of meeting participants, the process for debate and decision-making, and the preparation of the minutes. Main clauses include:

• The meeting agenda is set by the President.

• All matters to be discussed (tariffs, new concession contracts, addendum to concession contract, access mandates, draft regulations, POI, etc.) are supported by reports prepared by departments. The reports must be submitted three working days prior to the meeting. External opinions may be requested.

• During the session, department representatives make a presentation and answer questions.

• The Board deliberates and decides by unanimity or majority. Each member of the Board has one vote, and the President has a casting vote. Quorum for meetings is set at three members being present, including the President and the Vice-President.

Data and information used by the Board to make decisions

Board meetings are behind closed doors. Minutes are published on the OSITRAN website within two days of the meeting.6 In addition, relevant information used by the Board to make decisions is published in the official gazette “El Peruano” and on the OSITRAN website.7 Confidentiality can be granted at the request of interested parties, to protect commercial or industrial secret. Some Board decisions, like the approval of regulations or the modification of tariffs, include a mandatory publication stage (see section Stakeholder and User Councils consultations). Other Board decisions can also be published, at the discretion of the Board.

Internal organisational management

OSITRAN is organised as follow (see Figure ‎2.2 for full organigram):

• The strategic bodies include the Board of Directors, President of the Board and General Manager, described above.

• The institutional control body carries out governmental control functions within OSITRAN and reports to Peru’s supreme audit institution. Its main goal is to ensure transparent management of the entity’s resources and assets. Following the National Control System regulations it scrutinises the legality and efficiency of OSITRAN’s activities and the achievement of its objectives.

• The “Procurador” Office is the legal defence body. It represents OSITRAN in legal and administrative proceedings, arbitration and extrajudicial conciliations.

• The advisory bodies are responsible for developing and proposing advice and initiatives to the General Management. The Legal Advise Department (GAJ) provides legal advice on contractual, regulatory and administrative matters. The Planning and Budget Department (GPP) develops, implements and monitors activities in the areas of strategic and operational planning and budgeting. The Department also promotes organisational development, supervises processes (including the Quality Management System) and co-ordinates technical co-operation with other entities.

• The Administration Management Department (GA) regroups the support bodies that provide support in the areas of human and financial resources and IT services.

• The Line bodies are responsible for developing regulations, supervising and protecting users. The Regulation and Economic Studies Department (GRE) oversees the tariff system and monitors tariff procedures. It also carries out studies, research and publications. The User Protection Department (GAU) oversees the rights of intermediate and final users related to the public transportation infrastructure under the scope of OSITRAN. It also promotes effective policies, processes and mechanisms for quality in consumer protection. The Enforcement and Supervision Department (GSF) co-ordinates and implements the supervision, inspection and enforcement activities of OSITRAN.

• The dispute resolution bodies: The Controversies Settlement Court (TSC) decides in second and last administrative instance the disputes that arise between two regulated entities, between a regulated entity and an intermediate user, over the claims of users, as well as other matters established in regulations. The Administrative Affairs Tribunal (TAA) decides in second and last administrative instance the appeals against the Enforcement and Supervision Department decision.

• The decentralised bodies of OSITRAN provide technical assistance in regulatory, inspection and enforcement matters, as well as dispute resolution and user service, in co-ordination with the competent OSITRAN bodies.

• In addition, the Corporate Communications Office belongs to the Executive Presidency office and handles all media requests and the relationship with the national press, engages in outreach activities with companies, public bodies and citizens, produces the annual report and is in charge of the internal communication.

Most departments report to the General Manager (GM) with the exception of the Institutional Control Body, the “Procurador” Office, the Controversies Settlement Court (TSC), and the Collegiate Bodies.

copy the linklink copied!

Figure ‎2.2. OSITRAN’s organisational structure

Source: Information provided by OSITRAN, 2019.

Regulatory quality tools

The Regulatory Quality Assessment (RQA) is a procedure to assess regulations that establish administrative procedures to identify, reduce and/or eliminate unnecessary, unjustified, disproportionate, or redundant procedures Ministerial Resolution 196-PCM-2017. Laws issued by PCM require all government entities to perform RQAs on all regulations establishing changes in administrative procedures. More specifically, the Decree establishes three actions: an ex ante evaluation of the RQA, a review of the regulatory stock, and a revision to the regulatory stock every three years to reduce burdens.

A Multi-Sectoral Commission on Regulatory Quality (MCRQ) was established as a permanent body that reports to the PCM. The MCRQ assesses and validates the RQAs conducted by public entities of the Executive branch following four principles: legality, necessity, effectiveness, and proportionality. The MCRQ share observations and suggestions for improving the measure with the public entity for consideration which in the end turns back to the MCRQ for validation. The MCRQ can also propose the dismissal of an administrative procedure submitted for analysis under the RQA if it does not meet the principles of legality or necessity.

Independently and in parallel to the development of the PCM RQA, three sector regulators – Osinergmin, OSIPTEL and OSITRAN – developed manuals and guidelines for assessing the impact of regulations. These manuals extend the scope of analysis and application of assessments to include a wider scope of regulations, and not just those affecting administrative procedures.

OSITRAN had conducted regulatory impact assessments (RIAs) on draft regulations before 2018, but not on a mandatory basis and had not made these assessments public. To date, the only formal experience in the elaboration of RIAs in OSITRAN has been for the amendment of the OSITRAN’s General Regulation on Tariffs (Reglamento General de Tarifas de OSITRAN, RETA). The Regulation of Access to Public Transport Infrastructure (Reglamento Marco de Acceso a la Infraestructura de Transporte de Uso Público, REMA) and the General Rules of Supervision are currently in the process of being modified following the RIA Handbook methodology.

Engagement and transparency of engagement process

Many governmental and non-governmental stakeholders are directly or indirectly involved in the public transport infrastructure sector. Stakeholders of a governmental nature include the MTC, MEF, and Congress among others. Stakeholders of a non-governmental nature include the intermediate and final users and business associations, such as the Association for the Promotion of National Infrastructure (AFIN), which groups public service infrastructure concessionaires.

Appeals

OSITRAN has powers to solve controversies between regulated entities and users. The Board of Directors is ultimately responsible for solving appeals against tariff decisions. OSITRAN has three main administrative dispute resolution bodies governed by its internal regulations and supported by a technical secretariat:

• Collegiate Bodies (Cuerpos Colegiados de Solución de Controversias)

• Controversies Settlement Court (Tribunal de Solución de Controversias, TSC)

• Administrative Affairs Tribunal (Tribunal de Asuntos Administrativos, TAA)

There have been delays in appointing members of the Controversies Settlement Court (Tribunal de Solución de Controversias, TSC) and the Administrative Affairs Tribunal (Tribunal de Asuntos Administrativos, TAA). According to LMOR, the TSC members are appointed by Supreme Decree issued by the PCM. Since 2013, the PCM has not appointed two out of five members of the TSC. On the other hand, the TAA was created to serve as second instance body for sanctioning procedures. The Board of Directors appoints its members at the proposal of OSITRAN’s President. As of August 2019, the TAA members have not been appointed and the General Management performs its functions.

The Judiciary can review administrative decisions through a “contentious administrative process” under Law 27584 (proceso contencioso administrativo). Judges can decide the case based on both the merit of the issue or procedural defects of the administrative proceeding.

Moreover, OSITRAN can be involved in arbitration proceedings. There are two types of arbitration: arbitrations where the parties are the MTC and a regulated entity, and arbitrations where the parties are OSITRAN and the regulated entity. In the former, disputes occasionally involve OSITRAN’s decisions; thus, the regulator intervenes as a third party. In the latter, disputes involve OSITRAN’s decisions directly.

Supervision, inspections and enforcement

Enforcement and inspections are absorbing an increasing amount of resources – in 2019, 125 out of 310 staff work in the Enforcement and Supervision Department that also handles 43% of the regulator’s budget (Table ‎2.9 and Table ‎2.7). OSITRAN is in charge of supervising, inspecting and enforcing compliance with multiple obligations of 32 concession contracts. Activities are carried out by both permanent staff and external companies that provide specialised inspection services. There is little use of digital and electronic tools in the supervision and inspection activities.

Each concession contract include a risk-matrix mapping financial risks, political and force majeure risks, market risks, construction risks, etc. The regulator does not have a risk-based management approach to prioritise inspection activities. However, OSITRAN is making efforts to better use limited resources by implementing sample-based inspections (inspecciones por muestreo).

When finding non-compliance with contract obligations, OSITRAN can impose sanctions on regulated entities. The sanctioning process starts with a supervision report identifying evidence of non-compliance and continues with the communication and levying of fines or penalties. The regulator can give the opportunity to correct a defect or infraction, without applying sanctions or penalties. However, regulated entities perceive OSITRAN as a sanctioning authority.

OSITRAN carries out its supervision and inspection functions (supervision y fiscalización) based on the following documents:

• general supervision rules

• annual supervision plan

• incentive, infringement and sanction regulations (Regulaciones de Incentivos, Infracciones y Sanciones, RIIS)

The general supervision rules establish four types of enforcement activities: working meetings with the regulated entities to gather information or to co-ordinate activities, supervisions to review information provided by the regulated entities, regular inspections (visits to infrastructure sites) and on-site permanent inspections (permanent OSITRAN staff in the infrastructure sites).

The annual supervision plan is published in OSITRAN’s website and it provides information related to concession contract obligations. It includes descriptions of the type of supervised activities shown in Table ‎2.17.

In 2018, the Board of Directors issued the incentive, infringement and sanction regulations (Regulaciones de Incentivos, Infracciones y Sanciones, RIIS). These regulations aim to promote voluntary compliance and prevention rather than reactive sanctioning processes. Through this change, the regulator wants to evolve from an entity perceived as a sanctioning authority to a proactive institution that promotes compliance. The RISS contains a new methodology to calculate sanctions that would improve predictability. OSITRAN explains this methodology through a guide that is published in its website (OSITRAN, 2018[7]).

OSITRAN prioritises inspections related to user complaints and sensitive breaches to contractual obligations. During 2018, the GAU received seventeen complaints which motivated inspection activities (Table ‎2.18).

The regulator does not publish its inspection reports; however, they can be requested under the Peruvian Transparency Law. In addition, some information on inspections is made available through presentations to the User Councils.

Some matters require co-operation between divisions and departments and inter-institutional co-ordination with other entities (for example, the MTC, the APN and SUTRAN). OSITRAN co-ordinates with these bodies using ad-hoc and informal mechanisms.

Integrity and conflicts of interest

OSITRAN is governed by the Civil Service Ethics Code (Law 27815) that establishes ethics principles for civil servants and applies to all OSITRAN staff regardless of their contractual regime. These regulations govern relations between OSITRAN staff and the regulated sector.

The regulator also has to implement the institutional integrity model (modelo de integridad) and the Offices or Officers of Institutional Integrity as foreseen in the Anti-corruption Policy of the government (Decreto Supremo 092-2017-PCM) and the resolution n°001-2019-PCM/SIP of the Secretariat of Public Integrity of the Presidency of the Council of Ministers. OSITRAN does not have its own code of ethics. However, the regulator has recently adopted a number of initiatives demonstrating its commitment to accountability and integrity. In February 2019, OSITRAN adopted an Anti-Bribery Policy committing itself:

• To ban bribery in the organisation.

• To comply with the anti-bribery laws, regulations and rules applicable to the organisation.

• To comply with the requirements of the anti-bribery management system.

• To promote the reporting of bribery allegations in good faith or on the basis of a reasonable belief, and without fear of reprisals.

• To designate a compliance officer, with the authority to supervise the design of the system, ensure compliance with applicable requirements and guide staff on relevant issues of the anti-bribery management system.

Failure to comply with these provisions will be subject to investigation and sanctioning procedure.

The same month OSITRAN also created a reporting mechanism for alleged acts of corruption accessible to staff and citizens, monitored by the Head of Human Resources. The report can be made in writing or orally through a dedicated website, e-mail address or by phone. The identity of the reporting person and the content of the report are confidential. Reports made in bad faith are subject to sanction. In parallel, another reporting mechanism has been put in place in 2019 for citizens to report allegations concerning the concessionaires. Both mechanisms are placed under the responsibility of the GM.

In April 2019, OSITRAN obtained the ISO 37001 certificate “Anti Bribery Management System”. The implementation of a solid anti-bribery management system aims at instilling an anti-bribery culture within the organisation and implementing appropriate controls, which in turn increase the possibility to mitigate corruption risks. A compliance officer has been appointed in May 2019. Awareness raising activities concerning the Code of Ethics in the Public Service and the anti-corruption policy include trainings for new employees, and information e-mails sent to staff.

According to Supreme Decree 138-2019-PCM, all public servants of the Executive Branch are required to declare potential conflicts of interests (“Declaración Jurada de Intereses”). In addition, the Directive for the functioning of the Board of Directors meeting provides that a member with a potential conflict of interest must refrain from voting in the session.

Post-employment restrictions are governed by Law 27588. Any board members, senior officials, advisors and members of administrative tribunals, as well as officers or public servants who have had access to privileged information or whose opinion has been determinant in decision-making, are subject to a one-year post-employment restriction. This includes providing services under contractual arrangement, accepting remuneration, being part of the Board of Directors, directly or indirectly acquiring shares of a company associated with the sector, signing contracts with companies, or participating in employment with companies.

In addition, Law 26917 and the REGA provide that OSITRAN former staff may not provide services directly or indirectly to the service-providing entities for one year after leaving office.

OSITRAN carries out due diligence during the selection process of potential staff. To date, OSITRAN has not faced impediments in recruiting and retaining staff due to pre- or post-employment history.

Following OSITRAN General Regulation of Tariffs, regulated entities can request the organisation of private hearings to share comments on tariff proposal (see Stakeholder engagement). OSITRAN is required to publish on its website a list of all the meetings held with entities, detailing the names and roles of participants, aspects discussed and conclusions reached. However, explicit protection of engagement processes against potential conflict of interests of participants is lacking.

Assessing the performance of the regulated entities

OSITRAN collects a large amount of data and information from regulated entities in all sectors under its purview. As of August 2019, OSITRAN does not collect information related to the Amazon Waterway given that the project is in an early stage. OSITRAN publishes information related to investments, operations, exploitation, financial resources and management. Non-confidential sector information is posted on OSITRAN’s website. For example, the Regulation and Economic Studies Department (GRE) publishes monthly reports with sector information (boletines estadísticos) and the Enforcement and Supervision Department (GSF) publishes bi-monthly reports with information such as traffic, traffic accidents and environmental issues (reportes estadísticos).

The Statistical Declaration is a tool used to collect information from the regulated entities. Since September 2013, regulated entities must complete a monthly excel document and submit it by e-mail to [email protected]. To date, more than 16 000 forms of statistical declarations have been filed by the regulated entities. OSITRAN has the power to collect information from regulated entities through a compulsory process.

Regulation and Economic Studies Department (GRE) uses information provided by the regulated entities for benchmarking in tariff-setting procedures. In addition, GRE uses it to monitor market behaviour and to verify whether services where tariffs are deregulated continue to be provided under competitive conditions. Additionally it is used to inform users and third parties about the regulated entities performance in managing infrastructures.

OSITRAN acknowledges difficulties in managing, processing and using collected information. Human resources and budget are limited and the current tools are not efficient. OSITRAN is aware of these challenges and is aiming to enhance the use of information technologies to efficiently manage information linked to the performance of the sector and concession contracts.

Assessing the performance of the regulator

OSITRAN’s strategic framework is embodied in the Strategic Institutional Plan 2019-2022 (PEI), which sets out seven strategic objectives.

OSITRAN’s PEI has thirty-eight strategic actions (acciones estratégicas) and thirty-eight indicators. Each strategic goal has a matrix of strategic actions and indicators (see Annex 2.A). OSITRAN produces reports monitoring the implementation of the strategic objectives. The next evaluation of the 2019-2022 PEI is due in February 2020.

In addition, OSITRAN produces an Operational Institutional Plan (POI), which allocates responsibilities and budget to the departments. The POI is linked to the PEI through the strategic objectives and strategic actions. The plan is produced on a three-year basis (as the budget plan), but is updated annually. The POI is evaluated quarterly.