The maximum length of a public-private partnership contract will be 50 years Also, the private partner, regardless of the form of the public-private partnership, will be obliged to cover at least 50% of the commercial risks. This is provided in a bill that was given a first reading by Parliament, IPN reports.
The state-owned and municipal enterprises or commercial organizations in which the state or the local public authority owns shareholdings and from whose net profit over 30% of the investments planned for the public-private partnership can be covered cannot be objects of the public-private partnership. The current investments will be financed exclusively from the private partner’s funds.
An important clause institutes an efficient mechanism for monitoring the implementation of projects under public-private partnerships.
The bill was proposed by the Government. According to the authors, such a bill is necessary as there are normative errors that created preconditions for harming the state interests when a number of public-private partnership contacts were assigned, including the contract to concede the Chisinau International Airport and the contract to modernize and optimize the work of branches of the state-run enterprise ”Auto Stations and Terminals”.
Until it is given a final reading, the bill that updates the legislation on the public-private partnership is to be proposed for public consultations.
