The Municipal Public-Private Partnership Framework - Module 11: Sample Municipal PPP Agreement

Region
Country
Document Publication Date
September, 2019
Language
Document Type
Document(s)
Summary

This PPP Agreement is provided only as a sample document. It must be adapted to fit the unique circumstances and needs of each particular Municipality and project for which its use is intended. National and local laws, regulations, policies and practices may prescribe a different approach to procuring project-level consulting services. It is based on the World Bank Guidance on PPP Contractual Provisions (2017 Edition).

This agreement has been kept as simple as possible.

It should be modified to take into account the specific aspects of the transaction in question, including:

  • Payment structure of the project (e.g. availability payment);
  • Liquidity support (e.g. escrow account, performance bond);
  • Greenfield/brownfield (this template assumes that there will be at least some assets constructed and financed).
  • External financing (the template assumes that the asset will be financed by way of limited recourse debt financing).
  • Whether or not there will be employees transferred to the project;
  • Whether the Service Provider will deliver services directly to Users and/or collect payment from them. Whether tariffs will be regulated by an independent authority.
  • The application of local legislation, in particular PPP laws.
  • Time allotted for notices and decisions and other actions: the periods of time indicated are based on usual practice, and may need to be adapted.
  • A Government guarantee template is included, but if used will need to be adapted to applicable law and State practice.