The Gateway to Western Hemisphere Markets
Planning a Manufacturing Facility at Puerto Quetzal
Guatemala is positioning itself as a regional hub for sustainable industrial growth and global trade. Recent reforms—including the modernization of its port system, transparent procurement practices, and a strengthened framework for public-private partnerships—are designed to accelerate development and attract responsible investment. By adhering to Guatemala’s environmental regulations and supporting its national sustainability goals, manufacturers can contribute to the country’s green transition while gaining strategic access to lucrative markets across the Western Hemisphere.
Guatemala’s New Development Framework
Modern Ports, Transparent Procurement, and Stronger Partnerships
Guatemala has enacted and advanced a series of reforms designed to accelerate infrastructure growth and attract international investment. Together, these measures aim to modernize the country’s logistics backbone, strengthen transparency, and open new channels for private participation.
Ports: A Modernized Gateway to Trade
The Law of the National Port System (Decree 26-2024) establishes a unified framework for all public and private ports, creating a National Port Authority to regulate operations and promote competitiveness.
Key objectives include:
- Integrating ports with road and rail networks to improve logistics efficiency.
- Encouraging public-private participation in port modernization and expansion.
- Ensuring compliance with international safety and environmental standards.
In parallel, Bill 6541, supported by President Arévalo’s administration, expands this framework with a modernization plan focused on efficiency, transparency, and global connectivity.
A landmark agreement with the U.S. Army Corps of Engineers (USACE) for Puerto Quetzal brings international oversight and project management aligned with U.S. federal procurement standards—positioning Guatemala as a logistics hub for the Americas.
Public Procurement Reform
Guatemala is updating its procurement framework to strengthen accountability and streamline investment delivery. A new Public Procurement Law—identified by the IMF as a national priority—will simplify tendering, enhance digital transparency, and ensure clear, competitive processes for major infrastructure projects.
This reform is expected to make large-scale infrastructure procurement faster and more reliable, encouraging greater participation from international firms.
Partnerships for Development
The country’s Public-Private Partnership (PPP) framework, originally established under Decree 16-2010, is being modernized to attract a broader range of investors and sectors.
The updated law will:
- Simplify the approval process for infrastructure partnerships.
- Expand eligible sectors beyond transport to include utilities, energy, and logistics.
- Strengthen the national PPP agency (ANADIE) to manage and monitor partnerships effectively.
- Offer improved legal clarity and guarantee mechanisms to ensure long-term investment stability.
These reforms collectively create a clearer, more transparent environment for infrastructure investment—supporting Guatemala’s transition into a regional hub for trade, energy, and logistics.
Environmental Regulations
Guatemala has established a comprehensive framework for environmental regulations to ensure sustainable development and protect natural resources. Key regulations and compliance requirements include:
General Environmental Law (Decree 68-86)
This law establishes the basic principles for environmental protection, sustainable resource use, and pollution control. Companies must conduct Environmental Impact Assessments (EIA) for new projects, which include public consultations and approval from the Ministry of Environment and Natural Resources (MARN).
Environmental Impact Assessment (EIA)
Before commencing construction, the manufacturer must submit an EIA to MARN. This assessment evaluates the potential environmental impacts of the project and outlines mitigation measures. Approval from MARN is mandatory before project initiation.
Water & Air Quality Standards
Guatemala enforces strict water and air quality standards. The facility must implement measures to control emissions and effluents, ensuring compliance with national standards for pollutants.
Waste Management Regulations
Proper management and disposal of industrial waste are required. Companies must develop and implement waste management plans, including recycling and safe disposal of hazardous materials.
Permits & Licenses
The manufacturer must obtain various permits, including construction permits, operating licenses, and water usage rights. Regular inspections and compliance reports are required to maintain these permits.
Occupational Health & Safety Regulations
Compliance with health and safety regulations to protect workers is mandatory. This includes providing a safe working environment, proper training, and protective equipment.
Key Sustainability Initiatives
Renewable Energy Incentives
The government offers various incentives to attract investment in renewable energy projects. These include tax exemptions, reduced import duties on renewable energy equipment, and favorable financing terms.
Promotion of Green Technologies
Guatemala actively promotes the adoption of green technologies and sustainable practices across industries. Establishing a manufacturing facility for solar panels or LED lighting aligns with the country’s vision of becoming a hub for renewable energy production in the region.
Participation in International Agreements
Guatemala is a signatory to the Paris Agreement, committing to reducing greenhouse gas emissions and enhancing climate resilience. The country’s Nationally Determined Contributions (NDCs) outline specific targets for renewable energy and emission reductions.
National Energy Policy 2013-2027
This policy outlines Guatemala’s commitment to increasing the share of renewable energy in its energy mix. The goal is to achieve 80% renewable energy by 2027, with significant investments in solar, wind, and hydroelectric power.
Corporate Social Responsibility (CSR)
Companies are encouraged to engage in CSR activities that benefit local communities and the environment. This includes initiatives such as reforestation, education programs, and supporting local sustainable development projects.