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Practices

 

Public and Mixed Entities/Structures

In current economic times, where public bodies – both national and local – are playing an increasingly key role in the market (especially in the utilities and services sectors),we have seen an increase in the use of state-owned limited liability companies

Indeed, by using a corporate entity – rather than relying on traditional statutory bodies – public authorities are able to speed up the relevant administrative process and to achieve their market goals, while at the same time respecting the related public interest needs.

In addition, as a result of privatisations started in several countries, the public-private mixed company has become one of the main forms of public-private partnership (PPP). This is particularly the case in the following market sectors: public infrastructure, assets and services (mainly water, gas, electricity, transportation, waste management as well as zoning development).

With this form of structure, the private partner not only provides the financing but also the technical capability required to ensure that a project reaches a successful conclusion.

In this respect, European laws and national implementing provisions govern the set up and operation of mixed companies, operating public assets and providing public services, to ensure that fair competition and transparency principles are complied with.

The Allen & Overy Public Law group has a proven record of providing high-level assistance on projects involving both these forms of public and mixed companies. We advise both public bodies and private companies on the set-up phase, operation phase and the contractual relationship between the public and private parties, covering all issues including employment issues and public accountability. We can also assist on all the phases regarding the tender process to select the private partner and as we are a full-service law firm, can advise the client on all the legal issues involved in the matter.


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