DRC - Investing - A Law on Public-Private Partnerships

The Democratic Republic of Congo has embarked on a path of significant reforms aimed at making its economy more competitive. The private sector is expected to play a leading role in the country's development.

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This drive for recovery relies in particular on the liberalization of the economy and the construction and modernization of basic infrastructure to promote development and provide quality services to the population. The country's infrastructure and equipment needs, their impact on development, and the significant costs involved in their construction, rehabilitation, and/or acquisition have led the government to seek private sector participation in their design, financing, and/or operation.

To attract the private sector to this ambitious goal, a secure legal framework has been established, guaranteeing private partners a return on their investments. Public-private partnerships offer an innovative solution that aligns the respective interests of the partners: for the State, preserving the public interest by providing high-quality public services; and for the private sector, achieving a return on investment and generating profit. This approach significantly reduces reliance on public funds for infrastructure and equipment financing and has the added benefit of leveraging private sector resources.

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This law defines the legal framework applicable to public-private partnership contracts and establishes the fundamental principles and procedures relating to their conclusion, performance, monitoring and oversight, dispute resolution, the legal regime governing the assets necessary for their performance, and the obligations of the parties. The private partner is selected following a tendering process that guarantees transparency, competition, equality, and objectivity. Direct negotiation is only permitted in exceptional circumstances.

The important innovations introduced under this law include: 1. the integration of the concept of partnership contract into the Congolese legal framework; 2. the establishment of spontaneous offers and a public support institution responsible in particular for advising and assisting the government and contracting authorities in the design and conclusion of public-private partnership contracts.

In order to take into account the specificities of certain sectors, this law does not repeal the provisions of specific or special laws which govern public-private partnership contracts.

While the private sector can now undertake investments previously under the purview of the State thanks to Law 18/016 of July 9, 2018, concerning public-private partnerships, its implementation remains elusive nearly five years after its promulgation. This law defines the legal framework applicable to public-private partnership contracts. These contracts concern the construction of major public infrastructure through complex projects financed long-term by the private sector. In response to this situation, the government, through the Ministry of Planning, launched a workshop on April 12, 2022, dedicated to disseminating information about this law and its implementing measures, particularly Decree 21/04 of October 2, 2021, which establishes, organizes, and governs the operation of a public institution called the "Public-Private Partnership Advisory and Coordination Unit" (UC-PPP).