CP3P Legal & Regulatory Frameworks 2

Question 1

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

Accepted Answer

As administrative contracts governed by public law

Answer

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

Question 2

What is the primary purpose of a dedicated PPP law?

Accepted Answer

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

Answer

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

Question 3

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

Accepted Answer

Discriminatory or project-specific changes in law

Answer

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

Question 4

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

Accepted Answer

The direct agreement between lenders and the contracting authority

Answer

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

Question 5

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

Accepted Answer

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

Answer

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

CP3P - Public-Private Partnership Certification Practice Test