Governments around the world, but especially in Egypt, have increasingly used private sector involvement in developing, financing and providing public health infrastructure and service delivery through public–private partnerships (PPPs). Reasons for this uptake are manifold ranging from rising expenditures for refurbishing, maintaining and operating public assets, and increasing constraints on government budgets stifle, seeking innovation through private sector acumen and aiming for better risk management. However, like any approach, PPPs come with their own set of challenges of following laws, regulations and requirements that need to be carefully evaluated with the assist of the best Egyptian lawyer who has the requisite knowledge and can provide the actors with comprehensive and well-founded legal advice.

Egypt passed the Public Private Partnership (PPP) Law 67/2010, which targets key areas of the country’s infrastructure, such as agriculture and irrigation, education, industrial development, roads and transport, and water and sanitation. The law allows investments to take place under either an operating contract (whereby the product or service is sold to a Government entity) or a concessionary contract (whereby the private company is responsible for both operating the entity and selling the product or providing the services to the end-users, subject to strict monitoring by the Government).

Key characteristics of public-private partnership

Public-private partnerships involve collaboration between a government agency and a private-sector company that can be used to finance, build, and operate projects. Financing a project through a public-private partnership can allow a project to be completed sooner or make it a possibility in the first place.

PPPs are a continually evolving process as partners look to refine the collaborative relationship. With that in mind, the framework that supports the arrangement should have some key principles, such as:

  1. Risk sharing and allocation: Optimal risk sharing and allocation are for the party best able to manage them.
  2. Sufficient public interest: The arrangement between all actors means that there was sufficient public interest in the form of consultation with end-users, at the very least.
  3. Performance payments: This requires good human capital development and a financing framework that supports payments to private partners linked to performance.
  4. Capacity to deliver: The private partner has the capacity to manage all of the commercial processes and needs by consulting with their other private partners.
  5. Transparency: Public and corporate governance that includes high quality of service and performance keeps the process credible and transparent.
  6. Competition: Competition is necessary to break down barriers of entry for certain private partners. It also applies enough commercial pressure during the initial part of the process to maintain high standards.

Public-Private Partnership Advantages

Partnerships between private companies and governments provide advantages to both parties include:

  1. Ensure the necessary investments into public sector and more effective public resources management.
  2. Ensure higher quality and timely provision of public services.
  3. Mostly investment projects are implemented in due terms and do not impose unforeseen public sectors extra expenditures.
  4. A private entity is granted the opportunity to obtain a long-term remuneration.
  5. Private sector expertise and experience are utilized in PPP projects implementation.
  6. Appropriate PPP project risks allocation enables to reduce the risk management expenditures.
  7. In many cases assets designed under PPP agreements could be classified off the public sector balance sheet.
  8. PPPs enable infrastructure projects to benefit from private finance, reducing pressure on limited public resources.

Need a Legal Advice for your successful Public-private partnerships?

When infrastructure projects are implemented jointly by the public sector and private businesses, a number of legal pitfalls need to be considered and this led to the need of professional legal assistance tailored specifically to their circumstances by best Egyptian lawyer in order to ensure effective protection of their interests in the course of cooperation with public authorities.

Attorneys at “Consortio Law Firm” have significant experience in structuring a wide range of public-private partnerships (“PPPs”) for public and private clients

Our best Egyptian lawyer specializes in project design, invitations to tender, procurement procedures, project agreements and finance contracts. Clients benefit from their many years of industry experience, especially with regard to infrastructure projects, construction and telecommunications.

Our expert Egyptian lawyer guides public agencies safely and successfully through complex procurements, and helps private clients to secure outstanding and unique public-private opportunities.

For more details, feel free to contact us via the phone number 002 01028806061 or via WhatsApp or email Info@consortiolawfirm.com.