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Evaluating the Host Country's 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. Understanding the legal framework 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:

 

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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
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
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 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
Land, Environmental and Social Issues
Restrictions on transfer of rights in public assets to private sector operator PPP projects may require the transfer… more
Restrictions on Foreign Investors/ Currency…
Restrictions on Ownership of Companies by Foreign Investors When structuring the project company for any PPP project,… more
Labor / Labour Law & Employment Issues
Existing Employees of Awarding Authority Are existing employees of the public entity to continue working on the… 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
Mechanisms Enabling Legal Challenges against PPP… It is important for both government and potential investors to consider early on in the project development the range… more
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
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
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
Environmental Standards and Engineering Standards
Engineering Standards A 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

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Updated: September 12, 2024