Investment projects rely on new public-private partnership law

Every article of the bill draft on the partnership between the public and private sectors was approved yesterday by the Chamber of Deputies, as Minister Dan Sova pointed out the law was necessary because projects had not been carried out, despite the existence of Law 178/2010, Mediafax informs.
“Although we already have a law on the partnership between the public and private sectors, namely Law 178/2010, there is a legislative void. No project has been developed based on this law because the law itself blocks the initiation of partnerships by prohibiting the public partner from financing investments in PPP. Pursuant to European legislation and regulations on PPP, public authorities should be in charge of long term financing, but only after the private partner has built the objective of interest for the community at his own expense,” Sova told the Chamber’s plenum.
According to him, “the biggest advantage of the new law is that it enables central or local authorities to build several objectives simultaneously with money at hand and finalize construction quicker rather than having to wait for state budget loan approval or budget money.” The bill draft was criticized by Alexandru Nazare (PDL), who tried but failed to have the law sent back to the commission, arguing it leaves the door open for non-transparent contracts and endows the Department for Infrastructure Projects and Foreign Investments with unjustifiably big responsibilities.
The draft regulates the conclusion and execution of partnerships between the public and private sectors and is practically a new regulatory law in this field. The legislative proposal stipulates that if the private partner or project company fails to meet obligations agreed upon in the public-private partnership contract or any obligation to project financers, the public partner is entitled to replace the private partner upon own initiative or request from project financers.

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