Legal Alert: Regulation of Public-Private Partnership
The State Great Khural approved a government policy on Public-Private Partnership by Resolution No.64 in 2009, and the Law on Concession was approved in 2010 in accordance with the provisions of Article 6.1.1 of this policy. Due to the absence of specific regulations on public-private partnerships in the Law on Concessions, an update was deemed necessary. Consequently, the Government of Mongolia submitted the draft Law on Public-Private Partnerships to the State Great Khural on April 5, 2022. Following discussions, it was approved during the general session of the State Great Khural on December 9, 2022, and came into effect on December 31, 2023. This law consists of 9 chapters and 60 articles. This legal alert provides a summary of the regulation of the Law on Public-Private Partnership.
This law applies to the planning, development, evaluation and analysis of partnership projects to be jointly implemented by the public and private sector in the field of public infrastructure and public services, the selection of projects, the selection of private sector partners, and the conclusion and implementation of partnership agreements.
Definitions:
- Public-Private Partnership means the private sector partner collaborates with the state partner to provide public infrastructure and services in accordance with the partnership agreement over the long term, aiming for optimal risk distribution and funding tailored to the type of partnership for sustainable and efficient project implementation.
- Public infrastructure means public service buildings, highways, railways, cableways, above-ground and underground road structures, all types of engineering networks, simple and engineering structures for disaster and accident prevention, facilities with structure.
- Public services mean equal, qualitative, efficient public services provided by the Government to citizens in infrastructure, energy, roads, transportation, health, education, culture and other related fields in order to create a comfortable living environment for citizens according to legislations and standards.
Power of State Authorities related to partnership:
Public-private partnerships (hereinafter referred to as the "Partnership") are under the purview of the state central administrative body responsible for partnerships, which is the Ministry of Economic Development. The Ministry of Finance oversees budgeting, financial management, and control for both public and private sectors.
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