Best Public-Private Partnerships (PPP) Lawyers in Georgia

About Public-Private Partnerships (PPP) Law in Georgia

Public-Private Partnerships, commonly known as PPPs, are cooperative agreements between public sector bodies and private companies. In Georgia, these partnerships play a critical role in sectors like infrastructure, transportation, energy, social services, and public utilities. The goal is to combine the resources, expertise, and efficiency of the private sector with public objectives, often to deliver large-scale projects or essential services for the benefit of Georgian society. The legal landscape for PPPs in Georgia has evolved to create a welcoming environment for foreign and domestic investment, while ensuring transparency, fairness, and protection of public interests.

Why You May Need a Lawyer

Engaging in a PPP project in Georgia involves navigating complex regulations, contracts, and negotiations between public and private parties. Legal guidance ensures that agreements are clear, enforceable, and compliant with Georgian laws and international best practices. Common situations where legal help is important include:

• Structuring and negotiating PPP agreements
• Understanding tender and procurement requirements
• Conducting due diligence for potential partners and projects
• Drafting and reviewing complex contracts
• Securing permits and governmental approvals
• Resolving disputes between parties
• Clarifying tax, liability, and financial obligations
• Navigating project termination or modifications

Whether you are a public authority, a private investor, or a contractor, professional legal advice helps protect your interests and supports successful project delivery.

Local Laws Overview

PPP legal frameworks in Georgia are shaped by several laws and regulations. The Law of Georgia on Public-Private Partnership, adopted in 2020, serves as the primary legislative act governing PPPs. Key features include:

• Clear Definition of PPPs: The law sets specific terms for what constitutes a PPP, including criteria for project eligibility, types of agreements, and forms of cooperation.
• Transparent Procurement: Public tenders and competitive bidding processes are detailed to ensure that partner selection is fair and free from corruption.
• Government Support and Guarantees: While PPPs are based on shared risk, there are provisions for certain state guarantees and government support under regulated conditions.
• Contractual Flexibility: The law allows parties to design arrangements suited to the unique aspects of each project, covering matters such as financing, revenue sharing, performance obligations, and dispute resolution mechanisms.
• Monitoring and Supervision: Oversight mechanisms are in place to monitor project fulfillment, financial reporting, and compliance with environmental and safety standards.
• Alignment with International Standards: Georgian PPP laws follow models used in successful projects worldwide, making the market attractive to international investors.

Secondary regulations, sector-specific laws, and government decrees may also apply depending on the nature of the project. Legal advice is essential for interpreting applicable rules and ensuring all requirements are met.

Frequently Asked Questions

What is a PPP in the context of Georgia?

A PPP in Georgia is a legal agreement between a government entity and a private firm to design, finance, build, operate, or maintain public infrastructure or services for a predetermined period and set conditions.

Which sectors commonly use PPPs in Georgia?

PPPs are frequently used in transport, energy, healthcare, education, utilities, and urban development projects throughout Georgia.

How are PPP projects initiated in Georgia?

PPP projects can be initiated by the government through a formal announcement or by private companies proposing ideas to the public sector. Each project requires approval and assessment by relevant authorities.

Are foreign companies allowed to participate in PPPs?

Yes, foreign companies can fully participate in PPPs in Georgia, subject to meeting specific legal and qualification criteria outlined in the PPP law and procurement rules.

What are the main types of PPP contracts?

Common types include Build-Operate-Transfer (BOT), Design-Build-Finance-Operate (DBFO), Lease contracts, Concession agreements, and management contracts, each with distinct allocation of risks and responsibilities.

What risks are typically involved in PPPs?

Risks may include construction delays, cost overruns, changes in regulatory environment, demand risk, financial uncertainties, and political risks. Contracts are designed to manage and allocate these risks between the public and private parties.

Is public tender mandatory for all PPP projects?

The majority of PPP projects in Georgia are subject to competitive public procurement processes to ensure transparency and best value. Exceptions are rare and must be justified under the law.

How long do PPP contracts usually last?

Contract durations depend on the project type and sector but typically range from 5 to 30 years, allowing the private party to recover investment and ensure proper maintenance and operation.

What happens if a dispute arises in a PPP?

Dispute resolution mechanisms are included in all PPP contracts, and may involve negotiation, mediation, arbitration, or litigation according to the terms agreed by the parties and Georgian law.

Is government support available for PPP projects?

The government may provide support such as financial guarantees, assistance with land acquisition, or regulatory incentives, but only under clearly defined conditions to protect public interest and minimize fiscal risks.

Additional Resources

If you are seeking more information or guidance about PPPs in Georgia, consider reaching out to the following resources:

• Ministry of Economy and Sustainable Development of Georgia: Responsible for PPP policy, project approval, and regulatory oversight.
• Public-Private Partnership Agency: Specialized governmental agency offering up-to-date information, guidelines, and support for PPP project development and tender processes.
• Georgian National Investment Agency: Provides investment support and practical information for foreign and local investors interested in PPP opportunities.
• International financial institutions: Organizations such as the World Bank and European Bank for Reconstruction and Development offer documents, advisory services, and financing options for PPP projects in Georgia.

Next Steps

If you are planning to participate in or initiate a PPP project in Georgia, the following steps are recommended:

• Identify your goals and clarify the potential project or partnership opportunity.
• Gather preliminary information on applicable laws, regulations, and government policies.
• Consult with an experienced Georgian lawyer or legal firm specializing in PPPs for tailored legal advice and due diligence.
• Prepare all necessary documentation and participate in any required approvals or tender procedures.
• Ensure all contractual terms, risk allocations, and dispute resolution provisions are reviewed and understood before finalizing agreements.

Prompt and professional legal assistance is crucial for navigating the PPP landscape in Georgia, ensuring compliance, and maximizing your project’s success.