About risks in the privately financed public contracts Cover Image
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Despre riscuri în contractele publice cu finanţare privată
About risks in the privately financed public contracts

Author(s): Simona Gherghina
Subject(s): Law, Constitution, Jurisprudence, Civil Law
Published by: Universul Juridic
Keywords: public contract; private financing; concession; public-private partnership; risks; operating risk; public budgets; public service; financial balance;

Summary/Abstract: The assessment of economic risks is mandatory for public contracts with private financing, as it allows for the identification of the applicable contract award procedure (based on the distribution of the operating risk related to the normal operation of the asset or the related service), as well as for the clarification of the statistic treatment of the contract (on/off balance sheet, based on the distribution of all contractual risks, over its entire duration, to include both the risks related to normal operation and those caused by extraordinary events, as defined by the contract). This assessment of economic risks goes beyond the Civil code contract risks theory, yet without contradicting it. The reason for such assessment and for the regulation by contract of all risks is the maintenance of the financial balance of the contract and thus of its continuous application, which in case of public contracts accounts for the continuity of the public service.

  • Issue Year: 2019
  • Issue No: 01
  • Page Range: 125-155
  • Page Count: 31
  • Language: Romanian