Legal Framework/ Enabling Environment Assessment for PPPs

Legal Systems - Overview

Further Reading

World Bank Guidance on PPP Legal Frameworks

This report provides succinct guidance to governments on developing a sustainable PPP legal framework, prepared by the World Bank and published on Jun 16 2022.

ALSF on Legal and Institutional Frameworks in Africa

The African Legal Support Facility, ALSF, has developed a new tool, published in 2024, that provides a comparative and comprehensive analysis of the existing African legal and institutional PPP frameworks.

PPP Reference Guide

The Reference Guide provides the most relevant examples and resources on key PPP topics and helps readers navigate the substantial body of knowledge that has been generated across the world by practitioners from governments, international development institutions, academia, and the private sector. 

Evaluating the Legal Environment

Read more at Evaluating the Host Country's Legal Environment. Set out below are some of the key questions regarding the host country's Legal Environment that need to be asked when a Government is embarking on an infrastructure program or project:

Subsections

Contract Law – 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
Dispute Resolution Systems Available It is important to understand what forms of legal redress will be available to the various parties involved in an… more
Key Topics Across Infrastructure Sectors
Strengthen Women's Role in Community Engagement Community engagement is part of the greater stakeholder engagement… more
The Impact of Government Organization on PPP…
Which Government entities/ departments need to be involved in the approval process for the project? At the outset the… 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
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
Labor / Labour Law & Employment Issues
Existing Employees of Awarding Authority Are existing employees of the public entity to continue working on the… more
Land, Environmental and Social Issues
Restrictions on transfer of rights in public assets to private sector operator PPP projects may require the transfer… more
Lender Issues - Taking Security/Step-in Rights/…
Taking Security Is it possible to take security over the project assets and/ or the land on which they are built… more
Procurement Restrictions The laws in the particular country or a regional grouping (for example the European Union) may require that before a… more
Restrictions on Foreign Investors/ Currency…
Restrictions on Ownership of Companies by Foreign Investors When structuring the project company for any PPP project,… more
Environmental Standards and Engineering Standards
Engineering Standards A duty to operate in accordance with "good industry standards", for example in the toll road… 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
Taxes and Taxation Issues
Tax Issues A host country's tax laws can have a direct impact on the profitability of a public-private partnership… more
Constraints in the Law on Scope of PPP Projects A Government wishing to implement a PPP program or arrangement will need to consider early on in the project… more

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