Public private partnership in latvia-Latvia | PPP Standards

In recent years, public-private partnerships have evolved as vehicles to finance public infrastructure, buildings, equipment and environmental projects across the EU. This form of partnership has also gained increased importance across the Baltic states. According to data released by the European Investment Bank, since , an estimated 1, public-private partnerships have been signed with a total value exceeding EUR billion. Following reduction in the extent of nation-wide funding, public-private partnership is increasingly being perceived as a means of securing project development in challenging areas. Our Law Office has accumulated substantial experience in rendering legal services to public authorities and private companies in planning, funding and implementation of nationally and locally coordinated building and development projects.

Public private partnership in latvia

Public private partnership in latvia

This website uses cookies. Our legal experts routinely assist local municipality, along with the bodies and commercial entities it operates, in relation to a wide array of public-private partnership projects. Home Public-private partnership in Latvia. Text version Easy to read Site map Print. In Latvia, according to Clause 1 1 of the Law on Public-Private Partnership, the PPP refers to co-operation between the public and private sector simultaneously characterized by the following features: co-operation is between one Public private partnership in latvia several public partners and one or several Download porn wars the movie free partners involved in the public-private partnership procedure; co-operation is carried out in order to meet public needs in performing construction works or providing services; it is a long-term co-operation lasting up to 30 years but even longer in the cases, when it is necessary for the purpose of a contract and deliverables based on financial and economic calculations; a public and a private partner pool and use Public private partnership in latvia resources available thereto e. The Law on Public-Private Partnership also provides for the procedure of changes in the PPP contract concerning the participants or members of the special purpose entity. LV EN. Before providing your personal data, please get acquainted with data proceeding procedure. LV EN. Janis Reirs.

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Your Money. Your Practice. Public partner makes payments on the basis of the quantity of service or availability of a construction. Payments should be once a month or less to avoid fees! Public-private partnerships involve collaboration between a government agency and a private-sector company that can be used to finance, build, and operate projects, such as public transportation networks, parks, and convention centers. In cases such as shadow tolls privatw highways, payments are based on actual usage of the service. From now on, the responsible officials will have a liability, which will no longer be abstract, but will affect their private wallet. SocialWorldLithuania. Physical infrastructure, such as roads or railways, involve construction risks. Public private partnership in latvia Bleach mutagen briefly become winter-like in Latvia this week This week the sky in Latvia will be mostly covered by clouds. MoneySocialLatvia.

Ministry of Finance of the Republic of Latvia 1 Smilsu st.

  • A high-level discussion on the best international practices in regard to cooperation platforms for the voluntary exchange of information organized by the Finance Latvia Association in cooperation with RUSI Royal United Services Institute has been held with success.
  • In recent years, public-private partnerships have evolved as vehicles to finance public infrastructure, buildings, equipment and environmental projects across the EU.
  • Ministry of Finance of the Republic of Latvia 1 Smilsu st.
  • Public-private partnerships involve collaboration between a government agency and a private-sector company that can be used to finance, build, and operate projects, such as public transportation networks, parks, and convention centers.

Ministry of Finance of the Republic of Latvia 1 Smilsu st. The term public-private partnership PPP refers to co-operation between the public and private sector established for a fixed-term and on certain conditions to meet public needs in performing construction works and providing services.

PPP is not a new term, since certain forms of it can be found in ancient times. In the present world, the growing number of countries view PPP as an alternative to a traditional public investment model and a solution for providing successful public services, developing and maintaining infrastructure, which is indispensable for the whole society.

In the practice of EU countries, common PPP contracts involve the design, construction, maintenance and management of roads and other objects of public infrastructure, provision of waste management and heat supply etc. If these services have been traditionally provided and financed by the state or municipality, i. The public partner can thus focus on the execution of the primary functions, i. A common feature in any PPP is the realization of value for money — the acquisition of the financial usefulness of investments along with the hand-over of respective risks, promotion of innovations and efficient management of resources.

Thus the determination of value for money is one of the major components in adopting the decision on PPP implementation. Such approach is used in all countries implementing a targeted policy.

In Latvia as in any other EU Member State it is possible to implement both the contractual and the institutional PPP, in both cases concluding either a partnership procurement contract or a concession contract.

The public partner can thus choose and adapt the PPP implementation form as needed, for example, taking into account the specifics of a concrete object or service. The PPP agreement is defined in terms of a procurement contract and a concession contract. Public partner makes payments on the basis of the quantity of service or availability of a construction. At international level the partnership procurement contracts are often indicated by abbreviations on the basis of the list of activities of a private partner within the contract framework — design, construction, renovation, financing, management, administration, etc.

Such abbreviations can also be used in Latvia, adjusting the form of a partnership procurement contract in the case of construction works or public services. It is important that, concluding a concession contract, a private partner acquires the rights to use the construction or services as a remuneration or its essential part, i.

Although a private partner can be almost any person or an association of persons that has participated in and won the PPP procedure and with whom the PPP contract is concluded, taking into account the reallocation of possible PPP amount and risks, usually in order to ensure a contractual PPP on the part of a private partner, an undertaking of interested parties a constructor, a manager, a service provider, etc.

A public partner can also intend the establishment of a special purpose entity in the PPP procedure documents, setting it as an obligation for the performance of the PPP contract. The commercial law provides a procedure for establishment of a special purpose entity. The Law on Public-Private Partnership still sets some restrictions, for example, by providing for the funder interference rights in the establishment documents of the special purpose entity to change a participant or a member.

The Law on Public-Private Partnership also provides for the procedure of changes in the PPP contract concerning the participants or members of the special purpose entity. In addition, for some other person to become either a participant or a member of the special purpose entity it is necessary to receive consent from each public partner representative, and the procedure for carrying it out has to be defined in the PPP contract.

The main difference between an institutional PPP and a contractual PPP is the fact that in the institutional partnership a public partner and a private partner join in a joint venture a capital company and the public partner concludes a PPP contract with it as with a private partner.

An institutional PPP can be chosen in a case if the public partner wishes to have a stronger control over the execution of the PPP contract and participate in the administration of the established capital company, since both a public partner and a private partner jointly participate in the administration of an established joint venture. PPP risks, income and losses usually are shared in proportion to the shares of a public partner and a private partner that they have in a joint venture.

A risk factor to the establishment of a joint venture are the difficulties to adopt a decision, since both sides represent different interests — the state and the municipality are interested in a common good procurement, while a private partner aims at a higher profit. The state and the municipality need to dissociate themselves from business activities as much as possible, since it would deform the market.

Since in the case of a joint venture the state or a municipality is a co-owner of the undertaking, the public partner himself shall assume co-responsibility in the case if the service of the undertaking does not meet the quality criteria. This lessens the project implementation risks for a private partner, but increases the risks of a public partner. When the PPP contract comes to an end, the activity of a joint venture is also ended. Ministry of Finance processes personal data according to the laws and regulations.

Before providing your personal data, please get acquainted with data proceeding procedure. In order to provide information accessible for the society, photos, as well as video and audio records might be made within the premises of the Ministry of Finance.

Read More. All rights reserved. Lapas Karte. LV EN Site map. LV EN. Text version Easy to read Site map Print. Home Public-private partnership in Latvia. Oct Sep Oktobris Oct Nov. Tweets by Finmin. In Latvia, according to Clause 1 1 of the Law on Public-Private Partnership, the PPP refers to co-operation between the public and private sector simultaneously characterized by the following features: co-operation is between one or several public partners and one or several private partners involved in the public-private partnership procedure; co-operation is carried out in order to meet public needs in performing construction works or providing services; it is a long-term co-operation lasting up to 30 years but even longer in the cases, when it is necessary for the purpose of a contract and deliverables based on financial and economic calculations; a public and a private partner pool and use the resources available thereto e.

Public-private partnership types and forms In Latvia as in any other EU Member State it is possible to implement both the contractual and the institutional PPP, in both cases concluding either a partnership procurement contract or a concession contract.

Partnership procurement contract — a civil contract entered into by a public partner and a private partner for the period of time that is longer than five years, but does not exceed 30 years and stipulates: public construction works case: execution of public construction works with the following private partner duty to carry out the management of a constructed building; public services case: the provision of public services and execution of related construction works not being a core element of the purpose of the contract.

If a service concession contract does also include the execution of construction works mentioned in the Law on Public Procurement, Annex 1, not being its core element, such contract is considered as a public services contract. PPP contracts exceeding 30 years can be concluded if the contract objective and expected results require it and if it is based on financial and economic calculations. Institutional PPP The main difference between an institutional PPP and a contractual PPP is the fact that in the institutional partnership a public partner and a private partner join in a joint venture a capital company and the public partner concludes a PPP contract with it as with a private partner.

The main benefits of a joint venture: a joint venture is a separate legal entity functioning on its own account and independently of its founders, namely, a joint venture signs up for commitments in its own name. Both a successful or unsuccessful outcome largely depends on the ability of a joint venture and its administration to implement the tasks entrusted to it; an establishment of a joint venture can contribute to the adoption in the public sector a successful practice of the private sector, administration and manufacturing methods as well as other knowledge; a public sector still retains the possibility to ensure its veto rights and control over deciding on some important issues in a joint venture.

Minister of Finance Mr. Janis Reirs. This website uses cookies to improve your experience in using it and to optimise its operation. By continuing the browser session or clicking the button "Agree", you confirm that you agree to use cookies. For more detailed information, please read the Cookie Policy of our website.

Just like Singapore caps number of cars on the road and how they fill up airplanes with passengers. At international level the partnership procurement contracts are often indicated by abbreviations on the basis of the list of activities of a private partner within the contract framework — design, construction, renovation, financing, management, administration, etc. Our legal experts routinely assist local municipality, along with the bodies and commercial entities it operates, in relation to a wide array of public-private partnership projects. Following reduction in the extent of nation-wide funding, public-private partnership is increasingly being perceived as a means of securing project development in challenging areas. These partnerships work well when private sector technology and innovation combine with public sector incentives to complete work on time and within budget. Services Our principal public-private partnership practice areas include: Feasibility analysis and advice regarding public-private partnership and its options Advice on contractual relationship between the public sector and private sector counterparties Advice, drafting and negotiation of the necessary legal documentation Advice on legal title relationships under all phases of the project Drafting and negotiation of development agreements and cooperation agreements with other instrumental public and private participants Reconciliation of public-private partnership projects with public institutions Advice on real estate purchase or lease Assistance with solicitation of tax exempt status for the project Our Experience We pride ourselves in having represented our clients or having advised clients on a number of key transactions involving public-private partnerships. Ministry of Finance processes personal data according to the laws and regulations.

Public private partnership in latvia

Public private partnership in latvia

Public private partnership in latvia

Public private partnership in latvia

Public private partnership in latvia. Related articles

Such approach is used in all countries implementing a targeted policy. In Latvia as in any other EU Member State it is possible to implement both the contractual and the institutional PPP, in both cases concluding either a partnership procurement contract or a concession contract.

The public partner can thus choose and adapt the PPP implementation form as needed, for example, taking into account the specifics of a concrete object or service. The PPP agreement is defined in terms of a procurement contract and a concession contract. Public partner makes payments on the basis of the quantity of service or availability of a construction. At international level the partnership procurement contracts are often indicated by abbreviations on the basis of the list of activities of a private partner within the contract framework — design, construction, renovation, financing, management, administration, etc.

Such abbreviations can also be used in Latvia, adjusting the form of a partnership procurement contract in the case of construction works or public services. It is important that, concluding a concession contract, a private partner acquires the rights to use the construction or services as a remuneration or its essential part, i. Although a private partner can be almost any person or an association of persons that has participated in and won the PPP procedure and with whom the PPP contract is concluded, taking into account the reallocation of possible PPP amount and risks, usually in order to ensure a contractual PPP on the part of a private partner, an undertaking of interested parties a constructor, a manager, a service provider, etc.

A public partner can also intend the establishment of a special purpose entity in the PPP procedure documents, setting it as an obligation for the performance of the PPP contract. The commercial law provides a procedure for establishment of a special purpose entity. The Law on Public-Private Partnership still sets some restrictions, for example, by providing for the funder interference rights in the establishment documents of the special purpose entity to change a participant or a member.

The Law on Public-Private Partnership also provides for the procedure of changes in the PPP contract concerning the participants or members of the special purpose entity.

In addition, for some other person to become either a participant or a member of the special purpose entity it is necessary to receive consent from each public partner representative, and the procedure for carrying it out has to be defined in the PPP contract. The main difference between an institutional PPP and a contractual PPP is the fact that in the institutional partnership a public partner and a private partner join in a joint venture a capital company and the public partner concludes a PPP contract with it as with a private partner.

An institutional PPP can be chosen in a case if the public partner wishes to have a stronger control over the execution of the PPP contract and participate in the administration of the established capital company, since both a public partner and a private partner jointly participate in the administration of an established joint venture.

PPP risks, income and losses usually are shared in proportion to the shares of a public partner and a private partner that they have in a joint venture. A risk factor to the establishment of a joint venture are the difficulties to adopt a decision, since both sides represent different interests — the state and the municipality are interested in a common good procurement, while a private partner aims at a higher profit.

The state and the municipality need to dissociate themselves from business activities as much as possible, since it would deform the market. Since in the case of a joint venture the state or a municipality is a co-owner of the undertaking, the public partner himself shall assume co-responsibility in the case if the service of the undertaking does not meet the quality criteria. This lessens the project implementation risks for a private partner, but increases the risks of a public partner.

When the PPP contract comes to an end, the activity of a joint venture is also ended. Ministry of Finance processes personal data according to the laws and regulations. Before providing your personal data, please get acquainted with data proceeding procedure.

In order to provide information accessible for the society, photos, as well as video and audio records might be made within the premises of the Ministry of Finance. Read More. All rights reserved. Lapas Karte. We acted as legal counsel in relation to a development of commercial apartment property project which was realized in the form of public-private partnership, including evaluation aspects of tender documentation and strategic partner selection.

Our legal experts routinely assist local municipality, along with the bodies and commercial entities it operates, in relation to a wide array of public-private partnership projects.

Our lawyers provided counselling to a domestic public agency in relation to collaboration aspects of a public-private partnership, which involved selection aspects of the appropriate partnership model and preparation of the accompanying legal documentation.

All rights reserved. Eversheds Sutherland is a global provider of legal services operating through various separate and distinct legal entities. Eversheds Sutherland Entities are constituted and regulated in accordance with relevant local regulatory and legal requirements and operate in accordance with their locally registered names. The use of the name Eversheds Sutherland, is for description purposes only and does not imply that the Eversheds Sutherland Entities are in a partnership or are part of a global LLP.

The responsibility for the provision of services to the client is defined in the terms of engagement between the instructed firm and the client. Eversheds Sutherland.

Public and Private Partnership, Latvia - Eversheds Sutherland

Ministry of Finance of the Republic of Latvia 1 Smilsu st. Since , the Ministry of Economics and LIDA have promoted the start-up of PPP implementation as well as actively organized different meetings and provided consultations for the representatives of the public, private and non-government sector on issues related to PPP implementation, thus contributing to the PPP development in Latvia.

The pilot projects were chosen in different sectors as well as with different possible PPP models. On the basis of the implementation practice of the pilot projects mentioned above, the production of a various PPP standard documentation and the development of guidelines begun.

Upon reviewing the Law on Public-Private Partnership in the Cabinet of Ministers, a decision was adopted on handing over the function of PPP policy development from the Ministry of Economics, including from LIDA, to the Ministry of Finance, simultaneously handing over the financial resources and human resources designated for this function. Hence since June 1, the Ministry of Finance is the leading national regulatory authority responsible for the PPP policy development and coordinating its implementation.

In order to improve the cooperation between competent PPP bodies, on January 19, there was established an advisory PPP council operating as an advisory and coordinating body and having the objective of promoting a unified development of the PPP policy and its implementation. Ministry of Finance processes personal data according to the laws and regulations. Before providing your personal data, please get acquainted with data proceeding procedure. In order to provide information accessible for the society, photos, as well as video and audio records might be made within the premises of the Ministry of Finance.

Read More. All rights reserved. Lapas Karte. LV EN Site map. LV EN. Text version Easy to read Site map Print. Oct Sep Oktobris Oct Nov. Tweets by Finmin. Minister of Finance Mr. Janis Reirs. This website uses cookies to improve your experience in using it and to optimise its operation.

By continuing the browser session or clicking the button "Agree", you confirm that you agree to use cookies. For more detailed information, please read the Cookie Policy of our website.

Public private partnership in latvia