Public Private Partnership
A Public Private Partnership (PPP) has been known since time immemorial, but over the last few years it is experiencing a very specific interpretation. Other than in a conventional public adjudication where the government, by means of detailed tendering specifications, is looking for a private partner for the execution of certain works or delivery of certain services (in the form of a call for tenders or request for a quotation), a PPP goes much further. Although there is no univocal definition of PPP, the European Commission has retained the following characteristics of a PPP in her “Green Paper on public-private partnerships and the Community law on public contracts and concessions”:
- the rather long duration of the cooperation between parties,
- the manner in which the project in question is financed,
- the role of the parties in setting up, designing, executing and financing the project in question, and
- the spreading of risks.
The contracts most frequently used in a PPP structure is the DBFM (Design, Build, Finance and Maintenance) contract by which the private partner takes care of the design, building, financing and maintenance in the long term. The government then uses the infrastructure (e. g. school buildings, bridges, locks, motorways,…) against a remuneration, and at the end of the contract it usually becomes property of the government. But a PPP can also exist in the form of a DBM (Design, Build and Maintenance), a concession,… .
Considering the importance of these projects – in terms of scale as well as value – a solid practical experience and an expanded team are indispensable. Monard Law has all the necessary specialists at her disposal.
The extensive experience of our team ensures a very accurate knowledge of potential and current problems and various solutions. Our key competences regarding PPP are among others:
- preparation and analysis of tender specifications
- elaboration of contractual structures
- analysis of project documentation (DBFM, DBM+F, …)
- due diligence and risk analysis
- drawing up of due diligence reports and risk matrixes
- term sheets and contracts for financing
- security documentation and direct agreements
- corporate documentation (JV contracts, shareholder agreements, establishment of project companies,…)
- architect and building contracts
- fiscal advice
- counselling in litigations
The team has ample experience in assisting contractors, financiers and governments. The interests, practices and customs of each of these parties are known through and through.