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ARTICLE · 21 DECEMBER 2021

Water Projects – Laws On Public Private Partnerships – Global Water Intelligence Interviewing Dr. Oliver Massmann

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Is the new PPP law that came into effect earlier this year likely to help encourage foreign investment in these projects?

United StatesEnvironment
Oliver Massmann
Oliver Massmann
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1. Is the new PPP law that came into effect earlier this year likely to help encourage foreign investment in these projects?

Yes, the 2020 PPP Law and its guiding Decrees contain various provisions that benefit foreign investors. Among others, for example:

Provision on lenders' step-in right highlight the importance of bankable PPP contracts: PPP Law sets forth that in case of termination of PPP project contract ahead of the deadline and it is required to select a replacement contractor to ensure the progress of the project, the lender must coordinate with the State to select the alternative investor.

Detailed investment incentives that foreign investors can enjoy: Article 80 of PPP Law specifies that investors are provided with security regarding land access rights, right to use land and other public properties, property mortgage right, right to trade the project and its infrastructure system. PPP project enterprises are also given priority to utilize public

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