Legislation · Morocco

Law No. 86-12 on public-private partnership contracts

Law 86-12 creates the partnership contract under which a public entity entrusts a private partner, over a long period, with financing, building and operating a facility or service, with remuneration linked to performance targets. It requires a prior assessment and regulates award procedures.

Dahir No. 1-14-192 of 1 Rabii I 1436 (24 December 2014) promulgating Law No. 86-12 on public-private partnership contracts, as amended and supplemented by Law No. 46-18
Official Bulletin (B.O.) No. 6332 of 5 February 2015

Conditions for use

  • A prior assessment must demonstrate the complexity of the project, its urgency or the advantage of a partnership compared with other structures.
  • The contract allocates risks between the public entity and the private partner.
  • The partner's remuneration is linked to the performance targets assigned to it.

Award and performance

  • Contracts are awarded by call for tenders, by competitive dialogue or, exceptionally, by negotiated procedure.
  • The principles of free access, equal treatment and transparency apply.
  • The contract sets out the conditions for monitoring, amendment, termination and compensation.

Key articles

A lawyer's points to watch

  • A missing or inadequate prior assessment weakens the contract and opens the way to a challenge.
  • The risk matrix is the economic core of the contract: it must be negotiated before financial close.
  • The termination and compensation clauses determine whether the project is bankable.

The English text on this page, including the quoted articles, is an unofficial translation. Information sheet prepared by Maître Lahfaia Law Firm, Rabat. It does not constitute legal advice. Only the text published in the Official Bulletin of the Kingdom of Morocco is authoritative; the articles cited may have been amended since this sheet was written.

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