Categories
Uncategorized

Toolkit: Public Private Partnership Law (Royal Decree 52/2019)

Key Info

Title Public Private Partnership Law (Royal Decree 52/2019)
Date Issued 1 July 2019
Entry into Force 2 July 2019
Scope of Application Partnership contracts and related consultancy contracts for public-private partnership projects involving ministries, public authorities, public establishments, and other public legal persons in Oman.
Note Executive regulation to be issued within 1 year of entry into force. Repeals conflicting provisions.

Checklist

The table below identifies the key obligations under the Public Private Partnership Law (Royal Decree 52/2019).

Article Requirement Notes
7 Must submit a complete feasibility study for the project if the concept for the partnership project is accepted. The regulation will specify detailed rules and procedures for submitting the concept and feasibility study, including rights and obligations of the concept owner.
9 Must prepare the conditions and specifications document for the partnership project in coordination with the competent body, ensuring it includes essential information, project specifications, bond values, required records and procedures, objective evaluation principles guaranteeing non-discrimination, and essential contract conditions. The conditions and specifications document must be prepared by the authority in coordination with the competent body and include non-negotiable conditions; the regulation details the preparation process.
10 Must ensure that if a bid is submitted by a consortium, no qualified candidate member of that consortium submits another bid individually, through a different consortium, or through a company it controls, unless otherwise specified in the conditions and specifications document. Bids submitted contrary to this prohibition are deemed invalid, effectively disqualifying non-compliant candidates; applies to all qualified candidates participating in consortium bids.
11 Must assess submitted bids for compliance with announced conditions and specifications, disqualify non-compliant bids, evaluate compliant bids based on stated technical, financial, and legal principles, and award the partnership project to the best demonstrated bidder.
15 Must establish a project company solely for executing the announced partnership project, comply with regulations on its form and capital, and obtain written approval from the authority before executing other partnership contracts or trading shares prior to project completion. The regulation specifies company form and capital requirements; written approval from the authority is required before executing other partnership contracts or trading shares prior to project completion.
16 Must obtain the written approval of the authority before undertaking any modification to the legal form, capital reduction, share sale or mortgage, partner share modification, merger, split, acquisition, addition of new partners, or ownership transfer of the project company, and must not mortgage shares for non-financing purposes. Any unauthorized modifications or disposals are invalid; mortgaging shares is only permitted for financing purposes with prior written approval from the authority.
17 Must specify in the partnership contract the rights and obligations of the contracting parties, including detailed provisions on the parties, scope of work, ownership, insurance, financial obligations, licensing responsibilities, pricing, risk allocation, oversight mechanisms, modification rights, compliance with health, safety and environmental requirements, penalties, contract duration and termination, and dispute resolution. Contract duration must not exceed 50 years; administrative penalties for project company non-compliance must be included. The competent body has unilateral termination rights under specified circumstances.
18 Must not amend the conditions of the partnership contract except in accordance with its principles, by agreement of the parties, and with the written approval of the authority. Written approval of the Public Authority for Privatisation and Partnership is mandatory for any contract amendments, ensuring regulatory oversight.
23 Must transfer ownership of all partnership project assets to the state upon contract lapse or termination, excluding assets agreed otherwise, without judicial procedure, payment, or compensation, and any contrary disposal is invalid. Transfer of assets to the state occurs automatically without judicial process or compensation unless otherwise agreed; any contrary acts are invalid.
25 Must not charge any financial amount for products or services under the partnership contract except after obtaining a quality acceptance certificate from the competent body in accordance with the stipulated performance standards. Charging without a quality acceptance certificate is prohibited; no explicit penalties stated but non-compliance may lead to contract enforcement actions.
26 Must obtain the written approval of the authority and comply with specified procedures, conditions, and controls before selling, mortgaging, transferring rights or obligations, assigning execution, or arranging any mortgage or right in rem related to the partnership project land, except for financing purposes. Any unauthorized sale, mortgage, transfer, or assignment related to project land is invalid; written approval from the authority is mandatory, ensuring strict control over project assets.
27 Must abide by all applicable laws and regulations in the Sultanate, including those on employment, health and safety, and environmental protection, and must transfer expertise, technology, and knowledge to the competent body while training and developing its employees on managing and operating the partnership project as agreed in the partnership contract. Compliance with all relevant laws is mandatory; transfer of expertise and training obligations are contractually defined, emphasizing knowledge sharing with the competent body.
28 Must guarantee absolute equality between beneficiaries of the products or services provided by the partnership project, except when special treatment is permitted for certain beneficiary classes with equal legal status, subject to written authority approval, adherence to predetermined general rules, and approval by the competent body. Special treatment for beneficiary classes requires written approval from the authority and approval by the competent body, ensuring adherence to predetermined general rules.
29 Must use the assets of the partnership project only for their intended purpose, undertake necessary procedures to maintain and preserve them, and not sell or dispose of them except for replacement and renewal with written approval from the authority. Disposal of assets outside replacement and renewal requires written approval from the authority; unauthorized disposals are deemed invalid.
30 Must submit periodic reports to the competent body about all works relating to the execution of the partnership contract, including construction, preparation, maintenance, operation, and utilisation works. Reports must be submitted periodically as specified in the regulation; the competent body forwards copies to the authority.
32 Must provide employees of the competent body with all that enables them to enter the site and related places at any time to inspect, control, and evaluate all technical, financial, administrative, health, safety, and environmental aspects of the project. The project company must facilitate unrestricted access for competent body employees at any time, ensuring no obstruction to inspections related to technical, financial, administrative, health, safety, and environmental compliance.
33 Must provide the competent body with all information, data, documents, and papers related to the execution of the partnership project.
34 Must completely abide by and immediately implement any written orders and instructions issued by the competent body to ensure compliance with laws and regulations, proper progress, efficiency, or to avoid or remove damage.