PRIVATIZATION OF STATE-OWNED ENTITIES
FOREIGN CONCESSIONS, LICENSES OR FRANCHISES
Governments in both developing and developed countries have come to the realization that there are many benefits to be obtained by privatizing state owned enterprises such as utilities, transportation facilities and even such government functions as state pension or social security systems.
Privatization projects may entail the selling of existing state-owned facilities and the transfer, in whole or in part of ownership and/or control of the facility. Alternatively it may entail licensing concessions or franchising for a period of years. Still other project are contracted for development and operation to a private enterprise [BOT and its variants] and then returned to state-ownership after a period of years.
We can assist the client in obtaining information, developing strategy and policies, bringing parties together, negotiating agreements, drafting documents in all phases of the pre-privatization procedures and the privatization process as well as providing counsel during the post privatization legal operational issues.
Not all privatization projects are well advertised. often the formal announcement of a tender, auction or other proposed sale of an entity may become known long after the privatization terms and conditions have been determined.
Prospective contractors should obtain advance notice and a continuous stream of news concerning a pending privatization project as well as have the opportunity to participate in discussions which can lead to the setting of the terms and conditions for the privatization process. Our assistance at this early stage can make the client's participation more successful.
Careful legal analysis of the proposed terms and conditions is required; negotiations with the state owned enterprise and host government must be undertaken . The client should be represented by counsel in the tender or bidding, auction, sale or other process by which the assets or entity are transferred to the private sector and of course, counsel should provide the client with the necessary scrutiny, due diligence, review and drafting of the contractual documentation and the careful analysis of the underling legal framework which should be undertaken in collaboration with qualified local counsel which as noted, we can provide through our network of associated local counsel.
A team is usually formed of prospective partners, investment bankers, legal counsel, and others. We assist in the negotiations for the selection of the members of the team and the establishment of working arrangements or strategic relationships. Then we work with the team to ensure a smooth operation without which the ultimate objective of winning and acquiring the privatized entity would not be possible.
Essential working arrangements with government counsel and counsel for the state-owned enterprise must first be developed. We then assist in drafting and negotiating the contractual documents with them, assist in creating innovative financing arrangements and as the client's counsel, generally advise so as to ensure that the interests of the client are well protected in the relationships with all the parties to the privatization process.
We assist in the negotiation and review of concession and license agreements and ensuring that the underlying legal framework affords the client the necessary protection required in such operations.
Wolf, Arnold & Cardoso is particularly capable of providing the required legal assistance in privatization projects and has acquired insights into the privatization process by having participated in several such privatization projects on behalf of prospective contractors in certain cases and other instances as counsel to the privatizing government.
Maurice Wolf, Senior Partner, created and taught a graduate seminar on the Law of Privatization of State-Owned Enterprises while he was a Visiting Professor of International Law at Washington College Of Law, American University in 1997. He is presently collaborating on the writing of a text book, which is believed to be the first text book on privatization.
We welcome the opportunity to meet with you to discuss your serious interest in possible overseas privatization and related projects as well as to demonstrate how we can be of assistance to you in developing and facilitating your participation in such projects by the provision of high quality, cost effective international legal services. Of course irrespective of whether you continue with us, we will not charge you for an initial meeting.
Specialized seminars or training sessions are also offered to acquaint your personnel, legal staff and executives on the privatization process. These sessions are tailored to your specific requirements and could be either general or industry and/or country specific. They are particularly useful when the client anticipates involvement in a particular privatization, concession or licensing process. Please request additional information.
Inquiries or comments on our privatization practice are invited, or to arrange an appointment, please contact:
mwolf@interlawyers.com
or
Wolf,
Arnold & Cardoso, P.C.
1717 K Street, N.W. Suite 600
Washington,DC 20036, USA
Tel: 202-857-0585;
Fax: 202-293-2068
