LAWS TO WATCH: Public Private Partnership Act

ivan_vrdoljak_VladaRH_62529 September 2014, LPJ Croatia Issue 102

According to the proposed amendments, the legislation is harmonised with Eurostat recommendations, thus clearly separating concessions and Public Private Partnership (PPP). The term PPP is used for long-term contracts in which a significant portion of revenues to the private partner comes from fees paid by the public body, which is different from a concession model.

The definition of the total life costs and life cycle costs of the project is harmonised with ISO EN 15 686-5: 2009, which increases transparency and accuracy of the process of calculating the value and expected long-term savings. Meanwhile, value calculation, as well as fees paid by the public partner, are reduced.

The legislation adds the concept of small valued PPPs, which includes projects valued up to €600,000. Such projects will be implemented by a simplified model. This includes energy efficiency projects, including public building renovation and street lightning.

The legislation decreased the minimum deadline for the implementation of PPP projects from five to three years. The Public Private Partnership Agency (JPPP) will be merged with the Agency for the Investment and Competitiveness (AIK).

Note: Public debate is open until 7 October 2014…

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