Djibouti

Djibouti

Establishes a public-private partnerships framework

29 May 2017

On 29 May 2017, Djibouti adopted Law No. 186/AN/17, establishing a legal framework for public–private partnerships. The Law aims to bolster infrastructure development, encourage private investment and promote economic growth. It defines the conditions, procedures and guidelines for partnerships between public and private entities, enhancing transparency, accountability and efficiency in project implementation. It also establishes regulatory bodies and delineates responsibilities, with the intention of creating a balanced environment in which both public interests and private profit motives are aligned.

Key provisions of Law No. 186/AN/17 include:

  • Framework for PPP contracts. Article 5 establishes clear guidelines for drafting and implementing contracts, reducing ambiguities that had previously led to inconsistent practices.

  • Selection process. Articles 8–12 introduce competitive bidding as the primary method for selecting private partners, with exceptions allowed only in specific cases. This replaces less structured practices, ensuring transparency and fairness.

  • Regulatory oversight. Article 15 creates an independent regulatory authority to oversee contracts, replacing ad hoc regulatory arrangements. The authority is tasked with evaluating and approving projects, thereby adding a layer of accountability.

  • Risk allocation. Article 18 establishes provisions for risk-sharing between public and private entities, to help manage financial risk exposure and ensure sustainable project financing.

  • Dispute resolution. Article 20 provides a structured mechanism for resolving disputes related to contracts, offering a formal framework in place of reliance solely on general commercial law.

 

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Nature of measure:
  • Facilitation
  • Promotion
Type:
  • Entry and establishment (Ownership and control)
  • Promotion and facilitation (Investment facilitation , Investment promotion)
Industry:
  • Not industry specific
Inward FDI:
Yes
Outward FDI:
No
Sources: