Public Procurement Law

Public Procurement Law

• There are six procurement procedures that may be utilized by the state:
  1. Direct Purchase Contracts
  2. Public Tenders
  3. Invitations for the Submission of Quotations
  4. Competitions
  5. Direct Contracts
  6. Subcontractor Agreements
• Details conditions for bid and performance bonds.

• The Public-Private Partnership Law serves as the basis for executing major projects on a partnership basis between the public and private sectors.
• The Electricity Law invites local and foreign investors to participate in the electricity sector either on their own or in partnership with the public sector.

• This Law was enacted during the time Syria began to gradually liberalize its economy but not before plans for a social market economy were officially announced.
• This Law was passed as part of the government’s plans to update its procurement procedures in line with the economic changes taking place in Syria.

Public-Private Partnership Law

• The Public-Private Partnership (PPP) Law has been enacted with a view to preparing the ground for reconstruction and the rehabilitation of infrastructure in coordination with the private sector.
• PPPs can be defined as long-term contractual arrangements entered into by governmental entities and private sector parties with the aim of delivering services to the general public.
• When delivering public services under these business models, the private partner bears most of the risk and management responsibility associated with running the public facility in return for a profit.
• The PPP Law provides for the establishment of the PPP Council that makes important decisions to push PPP projects forward, which include approving PPP contracts. The PPP Council, which is chaired by the Prime Minister, supervises PPP projects and regulates agreements entered into by public and private sector partners.
• The PPP Bureau is expected to be the institutional focal point for implementing the PPP program such as by identifying potential projects and actively participating in the project procurement lifecycle.
• In terms of procurement procedures, the Tender Evaluation Committee will be tasked with evaluating bids and selecting preferred bidders.
• The Law provides for investment incentives for private sector partners to become shareholders in special purpose vehicles, which include the right of financial repatriation by foreign investors.
• The participation of the private sector along with its financial capabilities and expertise in delivering certain public services is recognized as a crucial component of the reconstruction process.

• The passage of the Public-Private Partnership Law is perceived by the government to be necessary given that the Public Procurement Law does not provide appropriate mechanisms to execute PPP projects.
• The Electricity Law invites local and foreign investors to participate in the electricity sector either on their own or in partnership with the public sector.

• The Public-Private Partnership Law was enacted against the backdrop of internal conflict in Syria, but which nevertheless was perceived to be essential in order to facilitate the rehabilitation of infrastructure through private investment.

Public Entities Law

• Governs the operation of publicly-owned commercial entities.
• Permits the separation of ownership and management to enable the private sector to operate these entities.

• To a certain degree, this Law serves as a precursor to a PPP law, a draft of which is currently under consideration.

• This Law was enacted during the time Syria began to gradually liberalize its economy but not before plans for a social market economy were officially announced.
• This Law was passed as part of the government’s plans to restructure the operations of the public sector in line with the economic changes taking place in Syria.