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Public-Private Partnerships (PPP) in the Republic of Lithuania are collaborative arrangements between government authorities and private sector entities for delivering public services or infrastructure. PPPs in Lithuania are regulated by a framework of national laws designed to facilitate investment and cooperation in public projects while ensuring transparency, efficiency, and fair competition. The system allows private companies to participate in the development, financing, operation, and maintenance of public assets such as roads, schools, hospitals, and other infrastructure, often through long-term contractual agreements. The aim is to combine the strengths of both sectors to meet public needs effectively.
Engaging in a PPP project often involves navigating a web of legal, regulatory, and financial complexities. Here are common situations where legal help may be crucial:
Lithuania’s PPP framework is primarily governed by the Law on Investment, the Law on Concessions, and the Law on Public Procurement, along with supporting regulations. Key aspects include:
A PPP in Lithuania typically refers to a long-term collaboration where a private entity designs, builds, finances, operates, or maintains public infrastructure or services under a contractual agreement with a government body.
The main laws include the Law on Investment, the Law on Concessions, and the Law on Public Procurement. EU directives on public procurement and concessions also apply.
Generally, public authorities such as ministries, municipalities, or state-owned enterprises initiate PPP projects. In some cases, private entities can propose unsolicited PPP projects, subject to assessment.
Common sectors include transport, healthcare, education, energy, water, and environmental services. Projects must be viable for both public and private partners and demonstrate added value.
Private partners are selected through transparent public procurement or concession procedures, which are open to competition and regulated by law.
Risks include construction delays, financial shortfalls, demand risk, changes in law or policy, and force majeure events. Contracts should allocate risks clearly between parties.
Financing may come from private sources, public funds, loans, or EU structural funds. Agreements may include state guarantees or viability gap funding in some cases.
Most PPP contracts last 10 to 30 years, depending on the sector, investment size, and service requirements.
Disputes are usually addressed first through negotiation. If unresolved, they may go to Lithuanian courts or arbitration as outlined in the contract.
The Lithuanian government and EU may offer incentives, such as grants, guarantees, or favorable regulatory conditions, particularly for projects of strategic importance.
If you need more information about PPPs in Lithuania, consider the following resources:
If you are considering involvement in a PPP project in Lithuania, follow these steps to protect your interests:
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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.
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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.
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