Public procurement and PPP
Legislation
Is the legislation governing procurement and PPP general or specific?
The legislation governing procurement and PPP in Angola is general.
Law no. 11/19, of 14 May, approves the public-private partnership regime and Law no. 41/20, of 23 December, approves the legal regime of the Formation and Execution of Public Contracts.
Also, Decree no. 52/97, of 18 July, defines the General Bases for Port Concessions.
Proposal consideration
May the government or relevant port authority consider proposals for port privatisation/PPP other than as part of a formal tender?
Ports are state property, forming part of the public maritime domain. Therefore, the public entity retains the ownership of the ports, with only the commercial operation of the terminals being attributed, through public service concessions, to private parties.
Private entities can only access port activity of cargo handling and related services, through a public service concession contract, applying the regime of the General Bases of Port Concessions.
Therefore, there is no room for self-proposals.
Joint venture and concession criteria
What criteria are considered when awarding port concessions and port joint venture agreements?
The criteria are always the best proposal for the public interest. Within these criteria are included the best technical solution and the best revenue to the port authority.
The Ministry of Transport draws up the respective programmes of procedure and specifications for the purposes of the procedures of formation and execution of public service concession contracts relating to port activities.
Model agreement
Is there a model PPP agreement that is used for port projects? To what extent can the public body deviate from its terms?
Private parties can only access the port activity of handling and loading and related services through a public service concession contract.
Decree no. 52/97, of 18 July, defines the General Bases for Port Concessions. Port concessions are governed by the administrative contracts’ regime in Angolan law.
Approval
What government approvals are required for the implementation of a port PPP agreement in your jurisdiction? Must any specific law be passed in your jurisdiction for this?
Each tender must have its own specific government act.
Projects
On what basis are port projects in your jurisdiction typically implemented?
As a rule, until now, the terminals concessions have not been greenfield projects, as they have been designed and built by the government or port authority and what is transferred to the private operator is just the operation of the port terminal. In specific cases where the improvement or expansion of the terminal is included in the concession, the model used is build-own-operate-transfer.
Term length
Is there a minimum or maximum term for port PPPs in your jurisdiction? What is the average term?
The law establishes that port concession contracts cannot have a term longer than 30 years, being neither renewable nor extendable in any way, unless otherwise resolved by the government. It is becoming usual to have contracts with a possible term of up to 50 years.
On what basis can the term be extended?
The Public Procurement Law states that the term of the concession may be extended based on the need to ensure the amortisation and remuneration, under normal conditions of profitability of the operation, of the capital invested by the concessionary.
Fee structures
What fee structures are used in your jurisdiction? Are they subject to indexation?
The Port Authority grants the use of part of the maritime public domain through the payment of a rent or fee for the pursuit of private purposes or activities, as established in the respective concession contract.
The fees usually are subject to indexation to annual inflation.
Exclusivity
Does the government provide guarantees in relation to port PPPs or grant the port operator exclusivity?
As a public service concession contract, it is granted an exclusivity right for the concession area. Within the concession area only the respective holder may commercially explore services, uses and activities of whatever nature considered in the contract.
Other incentives
Does the government or the port authority provide any other incentives to investors in ports?
In the case of port concessions, the law allows the constitution of guarantees on assets, provided that the period does not exceed two thirds of the term of the concession.
