Education PPP Structuring

What is the BOT model?

Build-Operate-Transfer. The investor builds the school, operates it for years to recoup costs and profit, then transfers ownership to the state.

Is a tender mandatory?

Yes, the law requires transparent competition. However, "direct negotiation" is possible for unique projects with government approval.

Who provides guarantees?

The state often guarantees minimum revenue or student numbers to mitigate business risk for the private partner.

How long is the contract?

PPP contracts usually last from 10 to 30 years, allowing the investor sufficient time to recover their investment.

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Education PPP (Public-Private Partnership) Structuring is an innovative approach where the state and business unite to implement educational projects. In Georgia, this model is becoming increasingly relevant, especially for building new schools, developing vocational colleges, and setting up university campuses. A PPP project allows a private investor to receive state funding or assets (e.g., land) in exchange for creating and managing educational infrastructure. However, such projects are legally highly complex: they require correct risk allocation, long-term contracts, and compliance with both public procurement and education legislation. Legal.ge offers experts who will assist in legal modeling of the PPP project, participating in tenders, and signing agreements with the state.

What Does Education PPP Service Cover?

The service is designed for large investors and construction companies. It includes:

  • Legal Design of Project: Selecting the PPP model (e.g., BOT - Build, Operate, Transfer) and risk analysis.
  • Tender Documentation: Preparing documents to participate in state-announced PPP tenders.
  • Contract Drafting: Preparing a complex agreement between the state and private partner regulating construction, operation, and service quality.
  • Financial Law: Legal support for Project Finance with banks and international donors.
  • Regulatory Compliance: Ensuring project compliance with the "Law on Public-Private Partnerships."

Real-World Scenarios Where You Need This Service

For example, a construction company wants to build student housing on state university land. In return, the company gets the right to manage the housing for 20 years and collect revenue from students. This is a classic PPP. A lawyer will help draft the agreement with the university and the Ministry of Economy, setting tariffs and responsibilities. Another example: a business creates a vocational college with the state, where the state provides the building, and the business provides equipment and training.

Georgian Legal Framework

The sector is regulated by the "Law of Georgia on Public-Private Partnerships" (2018). The law requires project registration, government approval, and a transparent selection process. The "Law on State Property" is also relevant for asset transfer.

The Process Step-by-Step

1. Concept: Initiating the project and submitting it to the government. 2. Tender: Participating in the public selection process. 3. Negotiation: Agreeing detailed terms with the state. 4. Contract: Signing the PPP contract. 5. Implementation: Construction and operation.

Why Choose a Specialist on Legal.ge?

PPP projects are long-term and require large investments. Incorrect structuring can cause project failure years later. On Legal.ge, you will find lawyers experienced in complex negotiations with state structures.

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