Structuring Public-Private Infrastructure Joint Ventures
A public-private infrastructure partnership is governed differently than a commercial joint venture, and the deal structure must answer to both.
Two Governance Standards at Once
Public-private infrastructure partnerships answer to two governance standards concurrently: the commercial return discipline a private partner's board expects, and the procurement transparency and public accountability a government infrastructure authority must satisfy under legislative and regulatory review. A joint venture structure engineered purely around commercial terms consistently stalls at the procurement approval stage, where public accountability requirements were never built into the negotiation from the outset.
“A joint venture structure engineered purely around commercial terms consistently stalls at the procurement approval stage.”
Where the Structure Must Answer to Both
The structure must answer to both standards directly: governance rights and decision authority calibrated to satisfy both a commercial board and a public procurement review, and a counterparty introduction process rigorous enough to withstand the same public scrutiny the authority itself answers to. Every counterparty introduction and the exchange of verification documents or counterparty details is governed by an executed Non-Circumvention Non-Disclosure Agreement (NCNDA) ahead of any information exchange, protecting both the private partner's commercial position and the public authority's procurement integrity.
Governing the Introduction With the Same Rigor
Engineering the introduction with that rigor means qualifying private-sector partners against both commercial capability and public-sector delivery experience, structuring governance rights that satisfy commercial return expectations and procurement transparency requirements concurrently, and sequencing the negotiation so procurement approval requirements are addressed alongside commercial terms from the outset, ahead of term-sheet execution.
- Qualify private-sector partners against both commercial capability and public-sector delivery experience
- Structure governance rights that satisfy commercial return expectations and procurement transparency requirements concurrently
- Execute Non-Circumvention Non-Disclosure Agreements (NCNDAs) ahead of any exchange of verification documents or counterparty details
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