Legal & Regulatory Frameworks Flashcards

In civil law jurisdictions, how are PPP contracts commonly classified?

Answer: As administrative contracts governed by public law

Civil law systems typically treat PPP contracts as administrative contracts, giving the authority special public-law powers and duties.

What is the primary purpose of a dedicated PPP law?

Answer: To set procedures, institutional roles, and limits for developing and procuring PPPs

A PPP law establishes the process, responsibilities, and boundaries that govern PPP preparation, procurement, and management.

Which change-in-law risk is most commonly retained by the contracting authority?

Answer: Discriminatory or project-specific changes in law

Authorities usually bear discriminatory and specific changes in law because the private partner cannot price or control them.

Lenders' step-in rights in a PPP are typically documented in which instrument?

Answer: The direct agreement between lenders and the contracting authority

The direct agreement gives lenders the right to be notified of defaults and to step in or substitute the private partner.

How do many PPP frameworks handle unsolicited proposals to preserve competition?

Answer: They subject the proposal to a competitive process, sometimes with a Swiss challenge or bonus

Mechanisms like Swiss challenge or bonus points reward the proponent while still testing value for money through competition.

Which US federal program provides direct loans, loan guarantees, and lines of credit for surface transportation projects, including P3s?

Answer: TIFIA

The Transportation Infrastructure Finance and Innovation Act (TIFIA) program offers federal credit assistance often used in transportation P3s.

Which 2005 federal legislation authorized tax-exempt Private Activity Bonds for highway and freight transfer facilities used in US P3s?

Answer: SAFETEA-LU

SAFETEA-LU amended the tax code to allow up to $15 billion in surface transportation Private Activity Bonds.