Infrastructure projects carry a number of risks and potential liabilities that are typically covered by insurance. The availability of insurance coverage and the terms of such coverage will differ from country to country and specific local advice should be sought on what is appropriate. In some countries, only local insurance is available, or there are restrictions on reinsurance.
Following a review of issues in the legal environment of the host country that may have an impact on the scope of the proposed PPP program or project, the government needs to determine whether it is appropriate or possible to amend the law to remove key obstacles to the program or project and/or to accommodate the constraints presented by the law in the design of the program or project.
Removal/ Amendment of Legal Constraints
PPP projects may require the transfer of rights in public assets to the private sector operator. The awarding authority may wish to transfer rights over, or ownership of, project assets to the project assets to the project company or operator and there may be a requirement for the project company to transfer ownership of assets to the awarding authority after construction or at the end of the PPP project.
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