These Regulations, comprising 60 articles, apply to existing partnership contracts at the time of their issuance, to the extent that they do not violate the terms of those contracts and establish that (i) public–private partnerships must be formalized through contracts in line with these Regulations; (ii) no contract may place financial obligations on the Libyan state treasury unless the project is exceptional and has approved budget funding.
The Regulations establish a General Authority for Partnership Affairs to oversee PPP projects, set policies and priorities, review feasibility studies, promote and approve contracts, and may propose tax exemptions or the creation of project companies. A Higher Committee, chaired by the Prime Minister and composed of key ministers and experts, supervises the authority. It approves plans, budgets, regulations, partnership guidelines, and major projects, and reviews periodic reports. The Regulations (i) define multiple PPP models, such as build-operate-transfer, concessions, service contracts, and management agreements, allowing flexibility depending on the project; (ii) set rules for project initiation and approval, allowing proposals from government entities or the private sector, with incentives for private proposals; (iii) detail the responsibilities of the project-owning entity, including preparing studies, defining partner selection criteria, managing risks, monitoring implementation, reporting progress, and coordinating with relevant authorities. A project-specific Committee is formed to manage partner selection, including preparing documents, evaluating bids, and recommending the winning bidder. The selection process must follow principles of transparency, competition, and equal opportunity, with clear financial, technical, and legal criteria.
Chapter 7 outlines that partnership projects are tendered publicly with clear rules, transparency, and equal treatment of bidders. Detailed documents guide submissions, which are evaluated to select the most advantageous offer. It also provides procedures for cancellation, exceptional negotiations, appeals, and handling failure to complete the contract.
Chapter 8 regulates the creation of a project company, usually a joint-stock entity formed by the public authority and the winning bidder, unless the project can be executed directly by the partner. It defines the company’s governance, including a board structure shared between both parties and professional management. Partnership contracts are formalized for a defined period (up to 30 years), detailing scope, financing, risk allocation, performance standards, and termination rules. The partner must meet strict obligations, and the project owner supervises implementation, while contract amendments or extensions are allowed under justified conditions.
Chapter 10 outlines the final rules governing financing, enforcement, and dispute resolution in PPP projects. While partners may obtain external financing, they bear full liability, and project companies are restricted from undertaking additional projects without approval. In cases of serious breach, the project owner may step in, terminate the contract, or appoint a replacement partner, with all assets reverting to the state at the end of the contract. The Chapter also addresses company restructuring, appeals, and dispute resolution under Libyan law, with arbitration permitted in certain cases. It further prohibits engagement with blacklisted or restricted entities and guarantees continued public ownership of project assets.