About Public-Private Partnerships (PPP) Law in Armenia
Public-Private Partnerships (PPP) in Armenia refer to collaborative arrangements between government entities and private sector participants for the development, financing, management, and operation of infrastructure projects and public services. Armenia has established a legal framework to facilitate transparent and mutually beneficial collaborations that support long-term economic growth, improve public services, and promote investment. The PPP mechanism allows the government to leverage private sector expertise and financing, while the private sector gets new business opportunities and a more predictable market environment.
Why You May Need a Lawyer
Navigating PPP projects in Armenia can be complex due to regulatory requirements, negotiation of contracts, project structuring, and compliance with local and international standards. Common situations where legal assistance is essential include:
- Drafting and negotiating PPP contracts and agreements
- Understanding procurement procedures and regulatory obligations
- Managing risks and liabilities associated with the project
- Partner selection and due diligence
- Securing permits, licenses, and approvals
- Resolving disputes between public authorities and private partners
- Advising on financial structuring, guarantees, and investment protection
- Assisting foreign investors to comply with Armenian laws and regulations
Local Laws Overview
Armenia’s Public-Private Partnership legal landscape is shaped by the Law on Public-Private Partnership of 2019, which defines the concepts, roles, and main legal aspects of PPP arrangements. Key features of the local legal framework include:
- Clear procedures for initiating, approving, and supervising PPP projects
- Transparent competitive selection of private partners, usually through public tenders
- Requirement for feasibility studies and risk assessments for each project
- Detailed regulation of contract terms, including duration, remuneration, termination, and dispute resolution
- Obligations for government support, guarantees, and oversight mechanisms
- Clarity on the use and ownership of assets during and after the partnership term
- Protections for foreign investors to encourage cross-border investments
- Distinct treatment of different PPP models, such as concession, Build-Operate-Transfer (BOT), and others
In addition to the main law, other statutory instruments, public procurement rules, and sector-specific regulations may also apply. Government oversight bodies play a supervisory and coordinating role throughout the life cycle of PPP projects.
Frequently Asked Questions
What is a Public-Private Partnership (PPP) in Armenia?
A PPP in Armenia is a long-term contractual arrangement between a public authority and a private sector entity for the delivery of infrastructure or services, in which both parties share the associated risks and rewards.
Which sectors are eligible for PPP projects in Armenia?
Typical sectors include transport, energy, water supply, waste management, healthcare, education, and other public services. The government may also allow projects in additional sectors as deemed necessary.
How are private partners selected for PPP projects?
Partner selection usually occurs through a transparent and competitive bidding process. Public tenders are announced and interested companies submit proposals, which are evaluated based on published criteria.
What are the main stages of a PPP project in Armenia?
Stages typically include project identification, feasibility analysis, procurement and partner selection, contract negotiation and signing, implementation, and ongoing monitoring and oversight.
What types of PPP models are recognized in Armenia?
Armenian law provides for various models, including concessions, Build-Operate-Transfer (BOT), Build-Own-Operate (BOO), and other contractual forms that specify roles, responsibilities, and risk-sharing.
What government support is available for PPP projects?
Support may include investment guarantees, financial incentives, co-funding, and assistance with obtaining required permits or licenses. Each project can have specific government support measures outlined in the contract.
How are risks and responsibilities allocated in PPP agreements?
Risks and responsibilities are contractually allocated based on the project type, sector, duration, and involved parties. The goal is to assign risks to the party best able to manage them efficiently.
Are there any restrictions for foreign companies in PPP projects?
Armenian law generally provides equal treatment to local and foreign companies participating in PPP projects, but some strategic sectors may have additional requirements or restrictions.
How are disputes resolved in PPP arrangements?
Dispute resolution mechanisms are detailed in PPP contracts, which may include negotiation, arbitration, or recourse to Armenian courts, depending on the project and parties' preferences.
What happens at the end of a PPP contract term?
Upon completion of the contract period, project assets and responsibilities typically revert to the public authority, unless the agreement specifies otherwise. Terms for renewal or transition are defined in the contract.
Additional Resources
For those seeking more information or looking to start a PPP project in Armenia, the following resources can be valuable:
- Ministry of Economy of the Republic of Armenia - the main government body coordinating PPP policy and projects
- Investment Support Center of Armenia - provides information and support for foreign and local investors
- Chamber of Commerce and Industry of Armenia - offers resources and guidance for businesses
- Legal consulting firms specializing in commercial and administrative law
- Relevant sectoral agencies depending on the specific project area (e.g. Ministry of Territorial Administration and Infrastructure for transport and utility projects)
Next Steps
If you are considering participating in a PPP project or have questions about your rights and responsibilities, it is important to consult with a lawyer experienced in Armenian PPP law. Here are recommended next steps:
- Gather all relevant information about your project or issue
- Identify and contact legal professionals or consulting firms with specific PPP and infrastructure experience in Armenia
- Prepare questions or documents for review to ensure an efficient initial consultation
- Stay updated on any legal or regulatory changes affecting PPPs by following governmental announcements
- Consider arranging ongoing legal support for the duration of the PPP project to ensure compliance and manage risks effectively
Working with a knowledgeable legal advisor will help you navigate the complexities of PPPs in Armenia, protect your interests, and support the successful implementation of your project.
Lawzana helps you find the best lawyers and law firms in Armenia through a curated and pre-screened list of qualified legal professionals. Our platform offers rankings and detailed profiles of attorneys and law firms, allowing you to compare based on practice areas, including Public-Private Partnerships (PPP), experience, and client feedback.
Each profile includes a description of the firm's areas of practice, client reviews, team members and partners, year of establishment, spoken languages, office locations, contact information, social media presence, and any published articles or resources. Most firms on our platform speak English and are experienced in both local and international legal matters.
Get a quote from top-rated law firms in Armenia - quickly, securely, and without unnecessary hassle.
Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation.
We disclaim all liability for actions taken or not taken based on the content of this page. If you believe any information is incorrect or outdated, please
contact us, and we will review and update it where appropriate.
