When awarding a PPP contract, the government accords preference to bidders commiting to entrust part of the execution of the PPP contract to companies majority-owned by Malagasy nationals. This contracts to Madagascar's general public procurement regime which only provides for preferential treatment to Malagasy nationals and companies incorporated in the country, regardless of the nationality of the owners. For the purpose of the OECD FDI RR, PPPs are assumed to affect only energy and transport infrastructures.
Article 3. General and sectoral scope of application
The provisions of this law apply to all economic and social sectors including those managed by special regulations, excluding the mining and hydrocarbons sectors.
[...]
Article 26. Criteria for awarding the PPP contract
The award criteria are defined in the final version of the tender dossier communicated in advance to potential candidates. The award criteria necessarily include:
- the overall cost of the offer, which includes the cost and amount of the financing offered, the total cost of the works as well as the charges related to the operation of the works, installations and equipment, the amount of the tariffs, royalties, fees, subsidies or rents paid by users and/or the contracting public entity, as well as other revenue collected by the Holder over the entire duration of the PPP,
- the performance objectives defined according to the subject of the PPP contract,
- the robustness of the financial arrangement according to the expected results,
- the allocation of risks between the parties.
Economic and social criteria may also be taken into account, such as the share of execution of the PPP contract that the candidate undertakes to entrust to companies governed by Malagasy law, majority owned by Malagasy nationals, or to Malagasy craftsmen, as well as environmental, social and governance criteria.
Other criteria, related to the subject of the PPP contract, may be retained, in particular the technical quality and the innovative nature of the offer, the deadline for carrying out the works or equipment, their aesthetic or functional quality. [...]" (LAW N° 2015-039 On Public-Private Partnership [google translation]).
LAW N° 2015-039 On Public-Private Partnership [google translation]
[<a href="http://www.ore.mg/TextesDoc/Loi-2015-039PPP.pdf">Law</a>]