Best Public-Private Partnerships (PPP) Lawyers in Bilbao

About Public-Private Partnerships (PPP) Law in Bilbao, Spain

Public-private partnerships - PPPs - are contractual arrangements in which a public authority and a private party cooperate to design, finance, build, operate or maintain public infrastructure or services. In Bilbao these arrangements are governed primarily by Spanish public procurement and concessions law, the requirements of the European Union, and by local rules and administrative practice in the Basque Country and the municipality of Bilbao. Typical PPP projects in Bilbao include transport and mobility projects, urban regeneration and waterfront redevelopment, social infrastructure such as hospitals or schools, and certain utility or service concessions.

PPPs are used to allocate risks, mobilize private finance and expertise, and to deliver complex projects under long-term contracts. Because PPPs combine public law, private contract law, public procurement procedures and sector-specific regulation, they require careful legal and commercial structuring to meet legality, transparency and value-for-money requirements.

Why You May Need a Lawyer

You may need a lawyer at various stages of a PPP - whether you are a public authority designing a procurement, a private sponsor bidding for a project, a lender providing finance, or a subcontractor working on a PPP scheme. Common situations where legal help matters include:

- Structuring the PPP vehicle and financing - corporate setup, shareholder agreements, and project finance documentation.

- Preparing and responding to public procurement processes - ensuring compliance with Ley 9/2017, de Contratos del Sector Público and applicable EU rules, selecting the appropriate procurement procedure, and preparing tender documents or bids.

- Drafting or negotiating concession contracts and service or operation agreements - allocation of risks, performance standards, payment mechanisms, termination clauses and handback obligations.

- Regulatory and permits work - land use, planning approvals, environmental impact assessment, utility authorizations and local licensing.

- State aid, competition and subsidy compliance - determining whether public contributions implicate state aid rules and structuring assistance to comply with EU and Spanish rules.

- Dispute prevention and resolution - dispute resolution clauses, arbitration, litigation and renegotiation strategies in case of significant changes or claims.

- Compliance with social, employment and procurement rules - public sector employment matters, subcontracting rules and social responsibility obligations.

Local Laws Overview

Key legal sources and practical rules relevant to PPPs in Bilbao include:

- National public procurement and concessions law - Ley 9/2017, de Contratos del Sector Público (LCSP) establishes the legal framework for public contracts and concessions in Spain, sets procedures, transparency obligations, selection and award criteria, and specific rules for social services and public works. It implements EU directives on public procurement and concessions.

- EU procurement directives - EU rules shape threshold values, procedures and principles such as non-discrimination, equal treatment and transparency. Many PPP procurements in Bilbao will be affected by EU thresholds and guidance.

- Sector-specific regulation - rules governing utilities, transport, water, energy, healthcare and other regulated sectors will affect project permits, tariffs, and operational requirements.

- Basque Autonomous Community and provincial rules - the Basque Government and the Diputación Foral de Bizkaia may issue regulations, guidance and administrative practices that interact with national law. Local administrations may operate municipal contracting rules and standard forms used by Bilbao City Council.

- Planning, land-use and environmental law - urban planning permissions, environmental impact assessments and local planning instruments are crucial for any infrastructure or regeneration PPP in Bilbao. Compliance with Basque environmental regulations and municipal planning rules is essential.

- Public finance, accounting and transparency rules - public authorities must apply public accounting rules and justify why a PPP delivers value compared with traditional procurement. Budgetary and reporting obligations shape how public payments and guarantees can be structured.

- Competition and state aid law - public contributions, guarantees or revenue support may raise state aid issues under EU rules. Competition law may also apply to consortiums or information sharing among bidders.

Frequently Asked Questions

What is the difference between a concession and a public contract?

A concession typically grants a private party the right to exploit an asset or provide a service and to receive revenues from users or the public authority. A public contract generally provides for payment by the contracting authority for supplies, services or works. Concessions often allocate greater commercial risk to the private party and are governed by specific rules under the LCSP and EU concession rules.

Which procurement procedures are commonly used for PPP projects in Bilbao?

PPP tenders commonly use competitive dialogue and negotiated procedures for complex projects where the authority needs to discuss solutions with bidders. Open and restricted procedures remain available for clearer-scope projects. The choice depends on project complexity, thresholds and the legal principles of transparency and competition.

Do I need to form a special company to bid for a PPP?

Many bidders form a project company - a special purpose vehicle - to hold contracts, financing and subcontracting relationships. A lawyer can advise on the appropriate corporate and tax structure, shareholder agreements, and liability allocation between sponsors, lenders and contractors.

How are risks typically allocated in PPP contracts?

Risk allocation aims to assign each risk to the party best able to manage it. Construction, design and performance risks often fall to the private party; regulatory and planning risks often remain with the public authority; revenue or demand risk may be shared or borne by the private partner depending on contract design. Clear drafting and measurable performance standards are essential.

What permits and approvals should I expect to need in Bilbao?

Expect planning and zoning approvals from Bilbao municipality, environmental assessments if applicable, building permits, utility connections, and sectoral licences such as transport, water or energy authorizations. Each project will have a specific permit map that needs early attention to avoid delays.

Can public authorities in Bilbao provide financial support or guarantees to PPPs?

Public authorities can provide payments, availability payments, subsidies, or guarantees, but such support must respect budgetary rules, public procurement principles and state aid law. Any financial support should be structured with legal advice to avoid state aid breaches and to ensure compliance with public finance rules.

What happens if there is a dispute under a PPP contract?

Contracts usually set out dispute resolution mechanisms - negotiation, expert determination, mediation, arbitration or litigation. International and complex PPPs often use arbitration for speed and specialist expertise. Local administrative disputes may also involve administrative courts. Early dispute management and clear contractual escalation paths help reduce time and cost.

Are there specific social or employment obligations in PPP projects?

Yes. Public contracts and PPPs can include requirements on employment conditions, subcontracting chains, social clauses, local hiring, and compliance with collective bargaining standards. Public authorities may include social responsibility criteria in tender evaluation.

How long do PPP contracts typically last?

PPP contracts are usually long-term - often 15 to 30 years or longer - reflecting the time needed to recover investment and to align incentives for maintenance and performance. Contract duration affects risk allocation, financing and handback obligations at contract end.

How do I check whether a PPP tender is coming up in Bilbao?

Tenders and contract notices are published by contracting authorities. Bilbao City Council, provincial bodies and relevant Basque public entities publish procurement opportunities. Monitoring procurement notices and registering with public procurement platforms is advisable. A lawyer or procurement advisor can help monitor and prepare responsive bids.

Additional Resources

For authoritative guidance and assistance consider the following institutions and organizations in or relevant to Bilbao:

- Bilbao City Council - municipal contracting office and planning departments.

- Diputación Foral de Bizkaia - provincial administration that may issue procurement or sectoral guidance.

- Basque Government - departments responsible for public works, environment, planning and economic development.

- Spanish Ministry of Finance and Civil Service and Ministry of Transport, Mobility and Urban Agenda - guidance on national procurement and PPP policy.

- European Commission resources on public procurement and state aid - for EU-level rules that affect PPPs.

- Colegio de Abogados de Bizkaia - local bar association for referrals to lawyers experienced in public procurement and infrastructure law.

- Cámara de Comercio de Bilbao - local business support and information about public tenders and project development.

- European PPP Expertise Centre - for international good practice on PPP structuring and risk allocation.

Next Steps

If you need legal assistance with a PPP in Bilbao, consider the following practical steps:

- Define your role and objectives - are you a public authority, sponsor, lender or subcontractor? Clarify your commercial goals and constraints.

- Gather key documentation - project briefs, feasibility studies, tender documents, land and planning records, and any existing contracts or permits.

- Arrange an initial consultation with a lawyer experienced in Spanish public procurement, concessions and PPP transactions - ask about their experience with Basque or Bilbao projects, fee structure and conflicts policy.

- Conduct early legal due diligence - identify procurement risks, permit gaps, state aid issues and likely contract terms that will affect feasibility and financing.

- Consider structuring and procurement options - evaluate alternatives such as concessions, availability payments, joint ventures or traditional procurement with specialist operations contracts.

- Plan for compliance and procurement timelines - public procurement processes and permit approvals can be time consuming. Build realistic schedules and contingency plans.

- If bidding, assemble a competitive team - combine legal, technical, financial and local advisors to craft compliant, compelling proposals.

Engaging legal counsel early helps protect your position, manage risk and improve the chances of a successful PPP outcome in Bilbao.