Legal Environment
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When a government embarks on an infrastructure program or project, it is crucial to thoroughly evaluate the host country's legal environment and the broader context in which PPPs operate. Understanding the legal environment is essential for ensuring that the project is feasible, compliant with regulations, and capable of attracting private investment. Below are key questions that should be addressed to assess the host country's legal environment, covering aspects such as procurement restrictions, dispute resolution and lender issues:
Subsections
Limitations in the Existing Legal Environment
A Government wishing to implement a PPP program or arrangement will need to consider early on in the project… more
The Impact of Government Organization on PPP…
PPP Approval, Award, and RegulationThe interface between the government and the service provider is key to the success… more
Procurement Restrictions
The laws in the particular country or a regional grouping (for example the European Union) may require that before a… more
Tariff Setting and Funding Constraints
The operator and any other investors or lenders will want to ensure the stability of income from the PPP project and,… more
Lender Protections and Government Support in PPPs
Taking SecurityIs it possible to take security over the project assets and/ or the land on which they are built?Is it… more
Land, Environmental and Social Issues
Land Rights and AcquisitionEstablishment of rights and title over, and use of, land is key to infrastructure projects… more
Foreign Investors Restrictions and Currency…
Restrictions on Ownership of Companies by Foreign InvestorsWhen structuring the project company for any PPP project,… more
Labor and Employment Laws
Existing Employees of Awarding AuthorityAre existing employees of the public entity to continue working on the facility… more
Dispute Resolution Systems
It is important to understand what forms of legal redress will be available to the various parties involved in an… more
Risk of Legal Challenges to PPP Projects
It is important for both government and potential investors to consider early on in the project development the range… more
Limitations on Freedom of Contract
The legal environment of a host country is likely to contain a number of restrictions on the parties' ability to… more
Insolvency Laws
When contemplating any form of financing of infrastructure project, the host country’s insolvency laws will need to be… more
Availability and Terms of Insurance
Infrastructure projects carry a number of risks and potential liabilities that are typically covered by insurance. The… more
Tax Law and Taxation
A host country's tax laws can have a direct impact on the profitability of a public-private partnership project and so… more
Environmental and Engineering Standards
Engineering StandardsA duty to operate in accordance with "good industry standards", for example in the toll road… more
Health and Safety Laws
Health and safety laws vary considerably from country to country, and there is a trend towards greater focus on safety… more