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Formation of the Public Private Partnership Projects Committee

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On 27 October 2022, the Prime Minister issued a decree No. 3827 for the year 2022 (the “Decree”) forming a committee of experts in financial, technical, environmental and legal affairs to study and examine projects to be implemented in accordance with Law No. 67 for the year 2010 regulating the public partnership with the private sector in infrastructure projects, services and public utilities (the “PPP Law”) (the “Committee”). The formation of the Committee comes after several amendments that were introduced to the PPA Law and its Executive Regulations earlier this year.

We delve below into the key highlights of the Decree:

Formation of the Committee

According to the Decree implementing the PPP Law, the Committee is chaired by the Deputy Minister of Finance for Financial Policies and Institutional Development (as a representative of the Ministry of Finance), and the membership of the following persons:

    • Head of the PPP Central Unit at the Ministry of Finance (representative of the PPP Central Unit);
    • Head of the Central Administration for Construction, Housing and Utilities at the Ministry of Planning (representative of the Ministry of Planning);
    • Head of the Feasibility Studies Unit at the Ministry of Planning,
    • Assistant to the Minister of Local Development for Planning Affairs;
    • Head of the Central Administration of Utilities at the Ministry of Housing; and
    • Assistant to the Minister of Transport for Operations and Budgets.

The Committee shall also appoint a technical secretariate (the “Technical Secretariat”) to be formed by virtue of a decision of the Chairman of the Committee.

The Decree further permits the Committee to seek assistance from any person(s) it deems appropriate who have experience in legal, financial and environmental affairs, and it may invite representatives of the competent ministries to attend the discussions of the projects submitted or relating thereto.

The Committee shall convene upon the invitation of its Chairman and whenever necessary.

Mandate of the Committee

According to the PPP Law and the Decree, the Ministry of Planning shall refer all PPP projects it deems to be in line with the Government’s plan for sustainable development to the Committee in order for it to closely examine how said projects would support infrastructure, services and public utilities and select the projects compliant with the requirements of participation with the private sector in accordance with the PPP Law. A list of such projects shall be issued and form part of the State’s general plan for social and economic development after being approved by the PPP Central Unit.

In this regard, the Technical Secretariat shall undertake the classification of the projects submitted to the Committee from the Ministry of Planning in accordance with utility and service sectors, prepare a file for each project and prepare technical reports relating to the relevant projects.

Market Reaction

The Decree is perceived as a positive step towards encouraging public private partnerships and the implementation of the PPP Law after it has been inactive for a long time. It further demonstrates, by virtue of the Committee’s membership, the sectors the Government is focusing on at the moment, including transportation and housing.