The Cabinet of Ministers confirmed draft law „Public-Private Partnerships Law”
On 17th February 2009, the Cabinet of Ministers confirmed draft law „Public-private partnerships Law”. The purpose of this Law is to facilitate co-operation between the public and private sector, to efficiently use resources of the public partner and private partner in order to satisfy public needs, ensuring publicity, free competition, equal and fair attitude in the implementation of public-private partnerships. The purpose of this Law is also to promote the fulfilment of the obligations of the signed public-private partnerships agreement until the expiry of the validity thereof by facilitating continuity of the construction works and services provided for in the public-private partnerships agreement.
During the drafting process there was analyzed experience on PPP legislation of other European countries as Great Britain, Ireland, Lithuania, Czech Republic and Greece, there were considered also basic EU legal acts and explored Judgments of the Court on PPP questions. Although in EU countries as Poland, Greece and Czech Republic PPP law is not so huge (on average 35-45 items) as PPP law in Latvia (119 items), however working group of PPP law had taken into account communications of EU Commission and Green Paper recommendations and also new tendencies of institutional PPP and step-in rights, thus Latvia is the one of the first countries of EU who included Institutional PPP and step –in rights to its normative acts.
The draft law was worked out taking into account the basic concepts and principles of the „predecessor” of draft PPP law – draft Concession Law that was developed with the assistance of the European Bank for Reconstruction and Development and Swedish international law firm „Manheimer Swartling”.
This Law prescribes:
- the procedure, according to which public partners and public partner representatives shall act when they jointly enter into one public - private partnerships agreement;
- the procedure according to which the decision regarding inception of a public-private partnerships procedure is taken;
- the information to be included in a public-private partnerships agreement, as well as the procedure, according to which the public-private partnerships agreement may be amended or terminated before the expiry thereof;
- loss reimbursement and compensation procedure when terminating a public-private partnerships agreement before the expiry thereof;
- the procedure of the establishment of a special purpose vehicle and the procedure, according to which a public-private partnerships agreement is concluded with a special purpose venture;
- the procedure of signing an information exchange agreement and exercising sponsor’s intervention rights;
- the public-private partnerships agreement registration procedure and availability;
- regulations for activities with public partner resources transferred to a private partner.
In the field of concessions the Law prescribes exceptions to the application of this Law; the procedure of exchange of information, concession procedure documentation and document preservation; the procedure for establishing the Concession Procedure Commission and operation thereof; the procedure for establishing the Application Review Commission and operation thereof; concession procedures and the procedure for the application thereof; special provisions for building concession procedure.
In the field of institutional partnership the Law prescribes the procedure, according to which a private shareholder of a joint venture is selected; the procedure for the establishment of a joint venture, particularities of the operation and the regulations for terminating the activity thereof; the procedure, according to which a public-private partnerships agreement is concluded, amended or terminated in the event of institutional partnership; loss reimbursement and compensation procedure when terminating a public-private partnerships agreement before the expiry thereof in the event of institutional partnership; the procedure of signing an information exchange agreement and exercising sponsor’s intervention rights in the event of institutional partnership.
In the field of public-private partnerships monitoring this Law prescribes the public-private partnership process monitoring institutions and the competence thereof on monitoring matters; the procedure for determining and financing the Monitoring Institution and approval of a regulatory enactments regulating the activity thereof; functions, rights and obligations of the Monitoring Institution; the procedure, according to which the Monitoring Institution operates as a public-private partnerships competence centre; public-private partnerships agreement execution control procedure.
More information about draft law is here. 
