Concessions and Public-Private Partnerships


Concessions and Public-Private Partnerships

Public-private partnerships were legally introduced into the Slovenian legal system with adoption of the Public-Private Partnership Act (hereafter: PPP Act) in 2006. PPP Act in Slovenian language is published here; in English version (unofficial translation) is published here.

The main reason for the adoption of the PPP Act was to strengthen the cooperation between the public and the private sector in the area of providing services of general interest and public infrastructure.

The PPP Act regulates the purpose and principles of private investment in public projects and/or of public co-financing of private projects that are in public interest. The PPP Act also regulates the methods of encouraging public-private partnerships and the institutions concerned with its encouragement and development, the conditions, procedures for creation, the forms and methods of operating public-private partnerships, the special features of works and service concessions and of institutional public-private partnerships. Furthermore, the PPP Act regulates the transformation of public companies, the system of law that applies to resolving disputes arising from public-private partnerships, and the jurisdiction of the courts and arbitration services to decide on disputes arising from such relationships.

Although the cooperation between the public and private capital was already possible before the PPP Act, the cooperation under those provisions was rather limited.

Possible forms of public-private partnerships are defined by PPP Act as:

Contractual Partnerships that may have form of:

  • A concession, or
  • A public procurement partnership.

Institutional or equity partnerships, which can be established:

  • By founding a new legal entity;
  • Through the sale of an interest by the public partner in a public company or other entity of public or private law;
  • By purchasing an interest in an entity of public or private law, recapitalisation; or
  • In another manner in comparative terms legally and actually similar and comparable to the aforementioned forms and through the transfer of the exercising of rights and obligations proceeding from the public-private partnership to such person.

The PPP Act divides the procedure for forming a public-private partnership into three basic phases:

  • Phase 1: preliminary procedure,
  • Phase 2: public tender,
  • Phase 3: selection of public-private partnership contractor.

The process of forming a public-private partnership can begin under the Slovenian legislation either by initiative of the public or private sector.

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