According to the new draft law on public-private partnership, based on the justification of the project, it will be determined whether it can be realized in this format, as well as what legal mechanism is applicable to it.
The justification should include a description of the public interest problem, objectives, analysis of alternative implementation options (including classic public procurement or concession), as well as technical, economic and financial evaluation.
In addition, the document will contain a calculation of investment and operating costs, a cost-benefit analysis, an assessment of socio-economic effects, and a clear allocation of risks between the private partner and the state.
Special attention will be paid to the impact of the project on the state budget, legal aspects and the treatment of the property involved in the project. The justification will also need to specify the implementation period, contract structure, investment return mechanism and royalty payment terms.
The prepared study is subject to mandatory approval by the relevant agency and, if necessary, by the Ministry of Finance and other competent authorities. The review period will be up to 30 days, with an option to extend it for another 30 days for complex projects.
The final structure of the study will be approved by the government, and the responsibility for the reliability of the submitted data rests with the public authority acting as a partner in the project.
The draft law on public-private partnership will first be reviewed by the government, then submitted to the parliament for voting.
The current law was adopted in 2008 and has been amended several times. The law is outdated and contradicts new requirements on public procurement, concessions and budget discipline.
