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Public-Private Partnerships (PPP) are a strategic model where the public sector collaborates with private companies to develop, finance, and operate projects or deliver public services. In the Hashemite Kingdom of Jordan, PPPs have become increasingly important for infrastructure development in sectors such as energy, water, transport, and education. The legal framework for PPPs is designed to attract private investment, transfer knowledge, and share risks, all while ensuring public interests are protected. The primary legislation governing PPPs is the Public-Private Partnership Law No. 17 of 2020 and its subsequent regulations, which outline the processes, requirements, and protections for both public and private participants.
Engaging in a PPP project involves navigating complex legal and regulatory processes. Here are some common situations where legal advice is crucial:
Given the significant financial stakes and regulatory obligations, skilled legal counsel helps protect your interests and ensures compliance throughout a PPP project.
Jordan’s PPP legal framework is primarily shaped by Public-Private Partnership Law No. 17 of 2020 and its executive regulations. Key aspects of local PPP laws include:
These laws seek to balance attractive investment conditions for the private sector with strong protection of the public interest.
PPPs in Jordan are commonly used for infrastructure projects in sectors such as energy (especially renewable energy), water treatment and supply, transportation (such as airports and roads), schools, and hospitals.
PPP contracts are usually awarded through a transparent, competitive procurement process. This may involve prequalification, request for proposals, and bid evaluation, overseen by the PPP Council.
There is no set minimum duration. The term of a PPP contract is determined based on the project's nature, investment recovery period, and risk-sharing arrangements, but they often range from 10 to 30 years.
Yes, foreign companies can participate, either directly or through joint ventures with local firms, provided they meet the qualification requirements established by law and the specific project tender.
Financing typically comes from the private partner, possibly supplemented by government support or international financial institutions. The precise structure varies by project.
Support can include the provision of land, guarantees, co-financing, tax exemptions, or other incentives, depending on each project's specifics and its importance to national development goals.
Yes, many PPP contracts in Jordan include arbitration clauses, enabling disputes to be referred to domestic or international arbitration, subject to agreement by the parties and Jordanian law.
The main phases are project identification and selection, feasibility study, procurement and bid evaluation, contract negotiation, construction and implementation, and ongoing operation and maintenance.
Yes, for large infrastructure projects, there are requirements for environmental and social impact assessment, which include public disclosures and opportunities for stakeholder engagement.
Upon contract expiry or termination, the project is typically handed over to the public party in accordance with agreed conditions. The contract outlines asset transfer, compensation, and other closure procedures.
If you are considering involvement in a PPP project in the Hashemite Kingdom of Jordan, the following resources may be helpful:
Consulting these entities early in your planning process can help clarify requirements and identify suitable legal advisors.
If you are seeking legal advice regarding a Public-Private Partnership in Jordan, consider the following steps:
Engaging skilled legal professionals early can help preempt common pitfalls, safeguard your investment, and ensure smooth project execution from initiation through completion.
