Togo: Public-Private Partnership (PPP), a work in Progress
In this modern era, infrastructure and social services have become a concern for many governments worldwide, but singularly in Africa. Infrastructures (roads, railroads, utilities, internet connection, bridge, airport, port market, etc.) and social services such as education, health, social housing, cultural and sports facilities, public gardens are the fundamentals of any government policy of economic growth and development. Analysts agree that there is interdependence between infrastructure equipment, the availability of social services in a country and its economic prosperity.
However, the realization of these infrastructures for economic or social purpose requires considerable financial resources. In Togo, the government aware of this reality has adopted the Law N˚ 2014-014 of October 20, 2014 pursuant to SUSTAINING GOVERNMENT ACTIONS FOR THE ECONOMY GROWTH, which contains a TITLE I entitled “Partnership Agreement "(CP).
The partnership contract in Togo is "an administrative contract whereby a public entity entrusts to a third party for a period determined according to the amortization period of the investments or the financing methods selected, a global mission which object is totally or Partially, cumulatively or alternatively, the financing, design, construction, transformation, renovation, maintenance, the operation or the management of infrastructures, equipment or goods of a public person ".
Pertaining to this law, the CP partnership is a government contract. This is one of the peculiarities of this law. This would be a real handicap to its attractiveness if the intention of the Togolese government is to argue against investors in the event of a dispute that it holds jurisdictional and or enforcement immunity so that it could neither be pursued before any jurisdiction nor it assets be seized.
The other peculiarity of this law is that it does not deal, as in certain countries with the concession contract which is subject to another regime and considered as a public contract.
Although the Togo partnership contract law calls for some additional government actions, in particular the adoption of organic decrees, it constitutes a base for the serene development of a partnership between the Togolese State and both domestic and international investors.
Dr. Martial Akakpo
[email protected]
Theo Al. Bitho
[email protected]
