Guinea: Republic Of Guinea Passes Public–Private Partnership Law To Lure Investors

In Short

The Situation: Although Guinea is rich in natural resources, its economy struggles to attract foreign investors. Some of the main bottlenecks identified by the government are the lack of critical infrastructures and an outdated legal, regulatory, and institutional framework.

The Solution: The Guinean government recently has adopted a new law on public–private partnerships and seeks the private sector's assistance to conduct at least 36 major infrastructures PPP projects in Guinea in the next few years.

Looking Ahead: The new PPP Law definitely will provide opportunities to foreign investors and lenders looking for business opportunities in sub-Saharan Africa in general and Guinea in particular. However, the enthusiasm of foreign investors and lenders may plummet as quickly as it rose, if the government does not adopt the necessary application decree.


Guinea's Urgent Need for Critical Infrastructures

Guinea is a geological goldmine, quite literally, when one considers the high concentration of natural resources in its soil (including diamonds, gold, iron, bauxite, uranium, nickel, phosphate, manganese, oil and gas, and so on).

However, successive Guinean governments have struggled to attract foreign investors to help to extract and exploit those natural resources. The lack of essential infrastructure, such as roads, railroads, power plants, and telecommunications, has greatly impeded the development of natural resources-based industries.

In order to facilitate the access to its natural resources, the government of Guinea has adopted the 2016-2020 National Plan for the Economic and Social Development, in which it solicits the assistance of the private sector to build critical infrastructure using public–private partnership ("PPP") schemes. To this end, the government has dedicated a US$5.5 billion budget to implement infrastructure PPP projects during the 2016–2020 calendar.

To date, 36 PPP infrastructure projects have been scheduled by the government, and five of them are already in discussions with Chinese partners.

In order to implement those PPP projects, the government has adopted a new law dedicated to PPPs, which is expected to foster the building of critical infrastructures and boost the national economy.

What is New with this PPP Law?

Although Guinea had already adopted a law on build-operate-transfer ("BOT") schemes in 1998, that law was never really implemented, because the government failed to adopt the decree necessary to its implementation.

This new PPP law provides a clearer, updated, and more secure legal, regulatory, and institutional framework for PPP projects, through various arrangements (partnership agreements, BOT, concessions, public leasing, delegated public service, etc.). PPP procurement tender processes also have been clarified and updated.

The PPP institutional framework is placed under the authority of the presidency of the Republic of Guinea, and different public authorities have been created to verify projects and follow the PPP procurement procedures.

Obligations to conduct feasibility studies and to precisely define public needs also have been increased in this new law. Thus, the government's demand for consultancy services pertaining to PPP feasibility studies may lead to an increase in the services of consulting firms and other companies.

The new PPP law also is consistent with international lender regulations and guidelines, and it includes protective measures provided by the Guinean Code of Investments, as well as relevant OHADA (Organisation pour l'Harmonisation en Afrique du Droit des Affaires or Organization for the Harmonization of Business Law in Africa) provisions (e.g., assignment of receivables).

What is Missing in this New Law?

This new PPP law is a great step forward in the government's effort to attract foreign investments and foster the building of critical infrastructures, in partnership with the private sector.

As encouraging as this new law may be, however, it still is missing crucial provisions necessary for its full, efficient, and safe implementation.

For instance, provisions pertaining to PPP procurement tender processes and derogative selection processes, as well as the details of mandatory provisions to be included in PPP draft agreements, are yet to be specified. Those missing provisions are expected to be adopted in a separate decree this summer.

After taking a very promising first step toward foreign investors, the Guinean government should be careful not to make the same mistake it did with the BOT law 20 years ago, and instead should ensure that it adopts the PPP decree in due time.

The new PPP law is similar to other such laws in sub-Saharan Africa. In order to achieve the desired results, the government needs to issue the necessary decree, simplify the administrative process, and avoid or remove any bureaucratic or other impediments placed in the execution of PPP projects. If the government fails to do so, potential investors will look elsewhere.

Three Key Takeaways

  1. The government of Guinea has dedicated a US$5.5 billion budget for the development of essential infrastructures in the country, and it seeks the assistance of the private sector via PPP schemes.
  2. To implement its new PPP strategy, the government of Guinea has adopted a PPP law and has published a list of top-priority PPP projects to be implemented in the next three years.
  3. The new PPP law must be completed with a specific decree, which is expected to be adopted this summer.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
 
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions