DAR ES SALAAM, Tanzania, April 11, 2019/ — More than 50 participants from the private sector, banks, legal firms, academia and the public sector gathered at the Golden Tulip Hotel, to share their feedback on the proposed 2019 edition of the World Bank’s Contractual Provisions for Public-private Partnerships (PPPs).
“This is a guidance note meant to help governments prepare PPPs that deliver much-needed infrastructure and public services,” said Christina Paul, Senior Counsel for the World Bank. “The Guidance explains how governments can protect their rights while ensuring the reasonable rights of their private partners.”
The complexity of PPPs frequently means that considerable time and expense is involved in preparing and finalizing PPP contracts. To make the contractual drafting process quicker and less expensive, many countries—and especially those with well-established PPP programs—have undertaken efforts to standardize the provisions in such contracts.
According to the World Bank Group’s 2018 Procuring Infrastructure PPPs Report, 52 out of 135 surveyed countries developed at least one model contract and/or standardized document applicable to PPP transactions.
To assist contracting authorities in developing and emerging markets to prepare PPP contract clauses in line with international good practice and standards, the World Bank initially developed the Guidance on PPP Contractual Provisions, 2017 edition, which focused on eight critical contractual provisions that are most essential for a project’s bankability and are found in virtually every PPP contract.
The 2017 edition is now being updated, taking into consideration stakeholder feedback that was received after its publication. The draft document has been shared for public consultations and is accessible on the World Bank’s consultation page. This consultation period started on February 5, 2019 and will run through April 30, 2019. The aim of this consultation is to capture inputs and recommendations by all relevant stakeholders to help inform the updated version, expected to be released in mid-2019.
‘‘The Guidance offers great learning material for legal and other PPP practitioners both from the public and private sector. Use of this document will increase confidence in PPPs and avoid disputes during their implementation,” said Paul.
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The consultative meeting attracted a wide range of stakeholders from the private sector, including banks, pension funds and law firms, as well as PPP units, Ministries Departments and Authorities, and Local Government Authorities. Participants shared their experience with PPPs and learned how to strengthen areas where they are still facing challenges.
The Government of Tanzania is currently working on developing model documents for small, low-risk PPPs. The model documents have been developed with World Bank assistance through the Tanzania PPP Support Program funded by the United Kingdom’s Department of International Development.
Source: APO
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