The Ministry of Economic Development and Digitalization has submitted a new PPP law for public consultation. It is designed to harmonize the national regulatory framework with the existing legislation on public procurement, concessions, as well as with EU PPP principles.
The authors propose to legalize the obligation of the parties to prepare a feasibility study. It should provide evidence that PPP is more efficient than other methods of public investment.
The justification should contain a description of the problem of public interest and its objectives. As well as an assessment of costs and risks, including tax risks, an analysis of budgetary implications and a mechanism for return on investment.
PPP projects can be implemented in several formats. The contractual form is a partnership based on a long-term agreement between public and private partners, with the possibility for the private partner to create a project company.
Another form, the institutional form, also involves long-term cooperation between the state and the private partner. But through it the partners create a common company, which after registration will act as a project company and will receive the status of a party to the relevant contract.
The choice of the form of PPP project implementation will be determined by the state partner on the basis of a feasibility study. The determination will take into account the distribution of risks between the public and private partners, the need to attract private financing; the complexity and duration of the project, as well as its economic efficiency.
The new provisions are proposed to come into effect on January 1, 2027, with the simultaneous abolition of the existing provisions on public-private partnership.
