Public-private partnership projects open major opportunities in infrastructure and public services, but they rest on long-term, complex contracts in which every clause allocates risks that may last for decades. Dr. Abdullah Al Rashdi Office, Advocates and Legal Consultants acts as a PPP lawyer in Oman, supporting investors, consortia, project companies and contractors at every stage of partnership projects, with over 20 years of experience.
The Public-Private Partnership Law in Oman
The Public-Private Partnership Law was issued by Royal Decree 52/2019 and came into force in July 2019, as part of Oman's drive to expand the private sector's role in development in line with Oman Vision 2040. It defines partnership projects as projects to carry out public works or provide public services of economic or social importance, or to improve and develop existing services.
The law regulates how projects are proposed, studied, evaluated and awarded, the formation of the project company, the essential terms of the partnership contract, supervision and grievances. An important rule is that project assets owned by the project company during the contract revert to the Government on expiry or early termination, which directly affects the investor's financial model and the drafting of compensation clauses.
When do you need a PPP and joint venture lawyer?
- You are considering bidding for a partnership project and need the tender documents reviewed.
- You are forming a consortium with local or foreign partners and need joint venture or consortium agreements.
- You are setting up the project company and organising relations between its shareholders.
- You are negotiating the partnership contract: term, payment mechanism, risk allocation, change in law, termination and compensation.
- You are entering into sub-contracts for design and construction, operation and maintenance, or finance.
- A dispute arises during the project over delay, payments or changes in scope.
- The contract is breached or terminated and compensation is claimed, or you wish to challenge an award decision.
Our services for partnership projects
- Legal review of tender documents and risks before you bid.
- Structuring consortia and project companies and drafting shareholder and joint venture agreements, alongside our investor and corporate services.
- Reviewing and negotiating the partnership contract, including force majeure, termination and compensation.
- Drafting sub-contracts with contractors, operators and suppliers that align with the partnership contract.
- Preparing and answering claims arising from partnership projects, and grievances against decisions.
- Representing you in negotiations, arbitration or before the Court of Investment and Commerce.
- Working with our construction disputes service on works-related issues.
Read also: Oman Public-Private Partnership Law Explained
Frequently asked questions
What is a public-private partnership contract?
It is a long-term contract under which a government entity engages the private sector, usually through a project company, to finance, build, operate or maintain a public project in return for a revenue stream set by the contract, with risks shared according to who is best placed to manage them.
Which law governs PPPs in Oman?
The Public-Private Partnership Law issued by Royal Decree 52/2019, its executive regulations and related decisions, together with the contract itself and other relevant legislation such as the Commercial Companies Law.
Who owns the project assets at the end of the contract?
Under the Omani PPP Law, assets owned by the project company during the contract revert to the Government on expiry or early termination, which is why termination compensation clauses are so important in negotiations.
How are PPP disputes resolved?
The contract usually sets the mechanism, which may start with negotiation, then mediation or arbitration, or proceedings before the competent court. Drafting the dispute resolution clause is one of the most important parts of the negotiation.
If you are preparing to take part in a partnership project, or face a dispute under an existing contract, contact Dr. Abdullah Al Rashdi Office on WhatsApp, call +968 92000841, or visit us at Bait Al Hamad, third floor, Al Khuwair, Muscat, near Takaful Oman Insurance and Bank Muscat, opposite the Ministries area.