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The new law on public-private partnership has been published in the Official Gazette and it will come into force on 25th of December, 2016.

Law no. 233/2016 on public-private partnership announces itself as a legal frame which promotes the cooperation between public institutions and private investors in order to achieve public projects. Thus, according to the new law on public-private partnership:

  • the scope of the public-private partnership is represented by the achievement, rehabilitation or extension of assets intended for the provision or operation of public services, based on the cooperation between the public and the private partner in order for the project to be achieved and for the private partner to obtain profit;
  • the project is financed from private sources, but it can also be financed from both private and public funds;
  • the risk allocation is based on the capacity of each party to evaluate, manage and control the said risk;
  • the implementation of the project is done by a project company, for which the capital share may be owned entirely by the private partner, in which case the partnership is a contractual one, or the project company may be created by both the public and the private partner, in which case the partnership is an institutional one;
  • the project is initiated by the public partner, which performs a substantiation study;
  • subsequent to the substantiation study, the assignment procedure is started, which, depending on the object of the project and the allocation of risks, may be regulated either by Law no. 98/2016 on public procurement, or by Law no. 99/2016 on sectorial procurement, or by Law no. 100/2016 on concession of works and services;
  • the law also regulates the content of the public-private partnership contract, as well as the means by which the contract can be modified or terminated.
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