Legal requirements specifying the conditions for associations between the private sector and territorial collectivities

New legal provisions specifying the terms of association contracts between territorial communities and the private sector have entered into force, after they were limited solely to the State.

This is part of Decree No. 2.21.349 issued in the Official Gazette No. 7118, which requires a tribal appraisal to be carried out before announcing the procedure to celebrate the association contract between the territorial community and the private sector.

The evaluation must include a detailed report to the head of the territorial community on the general framework of the project to be executed, the justifications for its execution, its characteristics, the needs of the users to be met, the objectives of the project and its level of complexity.

The report must also include the total expected cost of the project during the term of the contract, its financial sustainability, its financial structure, its financing methods, the legal status of the real estate container to be filled and the sustainable development requirements.

This report is presented to the deliberative body of the territorial community for its approval, and will not have executive force without previous annotation of the governmental authority in charge of the interior or of the person authorized by it for that purpose.

After this approval, the territorial community may proceed to the procedure of signing a collaboration contract with the private sector according to the competitive dialogue procedure, the open request for proposals, the request for proposals by selection, or the negotiation procedure when necessary. .

For each association contract, a supervision committee will be established, consisting of the general director of the departments, the department head in charge of financial affairs, the technical department head, a representative of the entity’s wali, the labor worker or the region, and a representative of the public treasury of the Kingdom when necessary.

The decree establishes the term to pay the amount owed to the holder of the partnership agreement within sixty days from the due date of this amount as specified in the partnership agreement between the public and private sectors, and the payment may be suspended if there are reasons. explained the head of the group in a letter to the holder of the partnership agreement.

In order to encourage the use of national contracting, the decree establishes a comparison between the offers presented by national and foreign companies and giving preference to national offers.