International Handbook on Public–Private Partnerships
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International Handbook on Public–Private Partnerships

Edited by Graeme A. Hodge, Carsten Greve and Anthony E. Boardman

In this timely Handbook, leading scholars from around the world explore the challenges presented by infrastructure PPPs, and contemplate what lies ahead as governments balance the need to provide innovative new infrastructure against the requirement for good public governance. This Handbook builds on a range of exciting theoretical lenses that span several disciplinary boundaries. It presents innovative insights and informed perspectives from an international base of empirical evidence.
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Chapter 10: Law and Regulatory Aspects of Public–Private Partnerships: Contract Law and Public Procurement Law

Christina D. Tvarnø


10 Law and regulatory aspects of public– private partnerships: contract law and public procurement law Christina D. Tvarnø Introduction The aim of this chapter is to present a number of rules and legal principles in regard to contractual1 public–private partnerships (PPPs). Contractual PPPs are often used in infrastructure projects, for example, in sectors such as transport, public health, education and national security. There are several relevant legal aspects surrounding PPP projects. This chapter concerns PPPs in a contract law and public procurement law context, with special focus on the European Commission (EC) public procurement rules and an introduction to the legal PPP principles in the World Trade Organization (WTO) and United Nations Commission on International Trade Law (UNCITRAL). It is not the purpose of the analysis in this chapter to cover different national legal rules and regulations, but instead to analyse and describe some more general principles in regard to PPPs. In a broad legal context, a PPP can be characterized2 as a long-term contract arrangement between a public authority and a consortium of private parties based on cooperation, aiming to provide a mechanism for developing public service provision involving significant assets or services for a long period of time. The asset or service is entrusted to the private sector, and a part or all of the funding comes from the private sector. This means that the private party in a PPP holds all equity and handles the works, operation and maintenance of the project.3 The PPP contract is,...

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