Public Private Partnership in the Republic of Macedonia is regulated with the Law on concessions and public private partnership, and such partnership is established by an agreement. According to the Law on concessions and public private partnership, public private partnership is a form of contractually regulated, long-term cooperation between the public partner and the private partner, characterized by the following:

A.     The private partner assumes the obligation to provide a public service for the end users in fields of competence of the public partner and/or the obligation to provide the necessary prerequisites for the public partner to provide a public service for the end users and/or activities within its competence;

B.     In order to fulfill the obligations referred to in point a) of this Article, the private partner may assume an obligation to:

–       Finance, design, construct and/or reconstruct/renovate a public infrastructure facility, operate and maintain a new facility and/or a reconstructed/renovated public infrastructure facility or

–       Exploit, manage and maintain an existing public infrastructure facility or

–       Any combination of the abovementioned obligations until the combination of the referred obligations is aimed at achievement of the goals set forth in point a) of this paragraph;

C.     Where assuming the obligation referred to in points a) and b) of this paragraph, the private partner usually assumes a significant part of the risks related to financing, construction, demand and/or availability and other such activities, management, maintenance and technical risks, depending on what has been agreed in the establishment of the public private partnership and is determined case by case;

D.    Each partner to the public private partnership during the public private partnership undertakes the responsibility for the risky events within its sphere of influence, or shares the responsibility in order to achieve optimal risk management during the partnership, inter alia , by using the managerial, technical, financial and innovative capacities of the private partner and by promoting exchange of skills and know-how – experience between the public and private partner, without being contrary to point c) of this paragraph;

E.     In exchange for the assumed obligations, the public partner may award the private partner public works concession or public services concession, or may compensate them by payment;

F.     The public partner may also enable the private partner to carry out certain commercial, economic activities, in addition to the obligations referred to in points a) and b) of this paragraph, determined by the contract, but only if there is no other possible way to ensure the necessary level of price efficiency of the private participation and reasonable recovery of the investment and

G.    The public partner may transfer certain actual rights to the private partner, which are necessary to fulfill the contractually set forth obligations.

Depending on the purpose of the funds for consideration by the public partner for provision of public works and/or public services, as well as the distribution of the key existing risks, the public private partnership may be established as:

1)      Public works concession or

2)     Public services concession or

3)     Contract for public works procurement or

4)     Contract for public services procurement.

In Republic of Macedonia, public private partnership is most often established in providing different types of public services and infrastructure projects, such as transport (roads, railways, airports), telecommunications, drinking water supply and waste water management, waste management, health, education facilities (schools, boarding schools), social protection and environment protection.

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