2017/2018 PPP LAWS ASSESSMENT IN THE EBRD REGION
Infrastructure investments are influenced by the underlying readiness of a country to develop PPP projects. Existence of a developed legal framework and its efficient implementation in practice lowers the perceived risks of investing and encourages potential investors.
Infrastructure investments are influenced by the underlying readiness of a country to develop PPP projects. Existence of a developed legal framework and its efficient implementation in practice lowers the perceived risks of investing and encourages potential investors.
Over the past twelve years, the EBRD has conducted a number of assessments looking at the effectiveness of legislative frameworks governing public-private partnership (PPP) in the EBRD region.
The EBRD’s assessments compare the legal frameworks in the various countries with internationally accepted standards and best practices, identifying strengths and weaknesses in terms of both extensiveness (“law on the books”) and its effectiveness (“law in practice”).
With international standards and trends in the PPP sector constantly evolving, the EBRD performed its latest assessment in 2017, with the previous assessment having been carried out in 2011.
| Part I - Legislative Framework Assessment (LFA) |
| 1. Legal framework governing PPPs |
| 2. Preparation of projects |
| 3. Selection of private partners |
| 4. Project agreements |
| 5. Security and support issues |
| Part II - Legal Indicators Survey (LIS) looking at effectiveness |
| 6. Policy framework |
| 7. Institutional framework |
| 8. Award Statistics |
| 9. Business Environment for PPPs |
New criteria included in the 2017 Assessment:
- „Bankability test“
- „Red flags“
The red flag indicates a lack of basic minimum compliance requirements, which is a deal breaker for most investors.
Compliance and Effectiveness Clustering