Moldova has improved the legislation on public-private partnership and prohibited the concession of profitable state-owned enterprises
In particular, this is stipulated by the relevant amendments to some normative acts concerning the aspects of public-private partnership (PPP) and state property management, passed by Parliament in the second reading. The document's main provisions are the modernization of the PPP institution in Moldova, the exclusion of legislative gaps in this field, the consolidation of the discipline of the public and private partners, the choice of private partners with high financial potential. The document stipulates that the maximum term of a PPP contract cannot exceed 50 years. The private partner, regardless of the form of public-private partnership, is obliged to bear at least 50% of commercial risks. At the same time, the PPP object cannot be state/municipal enterprises or commercial companies with state share, the net profit of which can cover more than 30% of the investments planned by the PPP agreement. Ongoing investments will be financed exclusively from the private partner's own funds. Investments financed from revenues related to the management of state assets cannot be recognized as investments from the private partner's own funds. Another important point concerns the creation of an effective mechanism to control the implementation of PPP projects. As Deputy Prime Minister and Minister of Economic Development and Digitalization Dumitru Alaiba said earlier, it is about eliminating a number of legislative and regulatory gaps related to PPPs, as these very shortcomings have led to omissions and abuses in national legislation, as well as errors in its application. He said that for many years, the state's interests have been harmed by the conclusion of PPP contracts, such as the Chisinau airport concession contract and the contract for the modernization of the network of bus stations and terminals. As Dumitru Alaiba stressed, the proposed amendments are part of Moldova's commitments to the development partners, including commitments to carry out reforms related to the European integration process, as well as part of the government's actions regarding de-oligarization. //14.07.2023 - InfoMarket.
