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Public-Private Partnerships (PPPs) in Amman, and throughout the Hashemite Kingdom of Jordan, are collaborative agreements between government entities and private sector companies to design, finance, construct, manage, or operate projects that serve the public interest. These partnerships are often used to develop large-scale infrastructure such as transportation networks, energy plants, water supply systems, schools, hospitals, and public facilities. PPPs provide access to private-sector expertise and investment while ensuring projects align with governmental goals for economic growth and social benefit. The Jordanian government has established a clear legal framework to regulate and promote PPPs, helping to foster confidence among both local and international investors.
PPPs involve complex contractual, financial, and regulatory requirements. Whether you are a private company interested in bidding on a PPP project, a consortium member, a financial institution, or a government authority, legal challenges may arise throughout the PPP lifecycle. Common situations where legal advice is essential include:
The primary law governing PPPs in Jordan is the Public-Private Partnership Law No. 17 of 2020, which replaced earlier frameworks to streamline the development and management of PPP projects. Key aspects include:
Most infrastructure and public service projects, including transportation, energy, water, healthcare, and education, can be delivered via PPP arrangements if they provide public benefit and align with national development plans.
The PPP Unit at the Ministry of Investment is the primary authority responsible for overseeing the identification, preparation, appraisal, procurement, and monitoring of PPP projects.
Yes, foreign companies can participate in PPP projects, subject to compliance with local investment laws, sector-specific regulations, and any country-of-origin restrictions outlined during the bidding process.
A PPP project is typically initiated by a relevant government entity, which submits a proposal to the PPP Unit. After initial screening and approval, a feasibility study and public tender process follow.
PPP contracts in Jordan can vary in duration, commonly ranging from 10 to 30 years, depending on the scale and complexity of the project.
Projects are awarded through a competitive tendering process. The PPP Unit manages the prequalification, bid submission, evaluation, and contract award phases to ensure transparency and competitiveness.
Common structures include Build-Operate-Transfer (BOT), Build-Own-Operate (BOO), and concession agreements. The model chosen depends on project needs and financing structure.
Key risks include construction delays, changes in law, financial shortfalls, demand risks, and political or regulatory changes. Contracts address risk allocation between the public and private partners.
Disputes are typically resolved through multi-stage mechanisms such as negotiation, mediation, or arbitration, as stipulated in the PPP contract. Jordan has a strong legal framework for enforcement of arbitration awards.
Yes, the government may offer incentives such as tax benefits, land grants, streamlined licensing, or guarantees to promote private sector investment in PPP projects.
Individuals and companies seeking more information or assistance with PPPs in Amman, Hashemite Kingdom of Jordan may consult the following:
If you are considering participating in or developing a PPP project in Amman, start by familiarizing yourself with the relevant laws and project procedures. Seek preliminary advice from specialized legal practitioners to identify potential risks, legal requirements, and project opportunities. Engage with the PPP Unit at the Ministry of Investment early in your planning process. For support with tender participation, contract negotiation, dispute resolution, or regulatory compliance, consult an experienced lawyer or legal team with expertise in PPPs and local law. Proper legal guidance can help safeguard your interests, improve your project's success rates, and ensure compliance with all applicable legal and regulatory standards in the Hashemite Kingdom of Jordan.
