Legal & Regulatory Frameworks Flashcards

What is the main function of a stabilization or economic equilibrium clause in a PPP contract?

Answer: To protect the private partner from adverse effects of certain legal or regulatory changes

Such clauses restore the private partner's economic position when specified government actions or changes in law upset it.

On early termination for authority default, compensation typically covers which elements?

Answer: Outstanding senior debt, equity, and an element of lost equity return

Authority-default termination is usually the most generous scenario, making lenders and investors largely whole.

Which law usually governs a PPP contract for domestic infrastructure?

Answer: The law of the host country where the project is located

PPP contracts for public infrastructure are normally governed by host-country law, often mandated by statute.

Which sequence best describes a typical tiered dispute resolution clause in a PPP contract?

Answer: Amicable negotiation, then expert determination or mediation, then arbitration or courts

Tiered clauses escalate from informal to formal mechanisms to resolve disputes efficiently.

Which set of principles underpins most public procurement rules applied to PPPs?

Answer: Transparency, competition, and equal treatment of bidders

Transparency, competition, and non-discrimination protect value for money and integrity in PPP procurement.

Which state's Public-Private Transportation Act of 1995 is widely cited as an early model of US state P3 enabling legislation?

Answer: Virginia

Virginia's PPTA of 1995 created an early framework for solicited and unsolicited transportation P3 proposals.

In many PPP frameworks, which body acts as a gatekeeper to approve fiscal commitments and contingent liabilities?

Answer: The Ministry of Finance or Treasury

Finance ministries typically approve PPPs at key stages to control fiscal risk and long-term commitments.