New law on public – private partnership

The Parliament of Mongolia enacted the Public-Private Partnership Law (“PPP Law”) based on the research of model law on Public-Private Partnership and its handbook replacing the previous Law on Concession (2010) on 9th December, 2022 and coming into effect on 31st December, 2023.

The new law clarifies the purpose, scope, principles, terms and understanding of public-private partnership and distinctly defines the legal framework for implementation of major infrastructure, social and economic goals of the country and the plenary powers and functions of public institutions in public-private partnerships by implementing public infrastructure and public service functions through private investment on mutually beneficial terms. Also creates a legal environment for implementing financial and budget control by improving coordination between these organizations related to the implementation of partnership projects.

Scope of the PPP Law

Public-Private Partnerships will be implemented on public infrastructure (public service buildings, highways, railways, cableways, underground and above-ground road facilities, all types of engineering networks, simple and engineering designs and structures for the prevention of disasters and accidents) and public services (services provided by the government in infrastructure, energy, roads, transportation, health, education, culture and other related fields to create a comfortable living environment for citizens in an equal, accredited and efficient manner in accordance with laws and standards).

Public-private partnership does not apply to defense, banking sector and financial market services, and the activities of exploration, mining, and exploitation of minerals for for-profit purpose, other than providing services to the public through the infrastructure of the mining industry.

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For further information, please contact V. Bolormaa, GRATA International Law Firm partner at bvolodya@gratanet.com and lawyer T.Buyanjargal at btungalag@gratanet.com or +976 70155031.

GRATA International in Mongolia is part of the global law firm, which has offices in 20 other nations. This legal material is not a thorough examination of any particular problems; rather, it is meant to provide general knowledge. Before making any decisions, the reader should consult a professional for advice that is suitable to their situation (s). Any consequences or damages resulting from the use of this legal information are not our responsibility.

Buyanjargal Tungalag
Author: Buyanjargal Tungalag
Job title: Associate
Ulaanbaatar, Mongolia
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Bolormaa Volodya
Author: Bolormaa Volodya
Job title: Partner
Ulaanbaatar, Mongolia
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