Economic recovery after the Covid19 pandemic will involve significant increased government spending on infrastructure projects and may incentivise more large scale Joint Ventures across the infrastructure sector.
Competition law and regulatory risk from joint ventures, especially between competitors, should be addressed at an early stage and throughout the life of the JV.
Jason Fowler
Partner, Board Member, Gardiner & Theobold
One of the most challenging compliance issues for complex global JVs is the prohibition on the exchange of commercially sensitive information
The consequences of breaching competition law can be serious with significant penalties – up to 10% of global turnover and personal liability for individuals.
Increased government spending on infrastructure may drive the need for more alliances and Joint Ventures to share risk, resources and expertise. Infrastructure client requirements for contractors to engage in closer collaboration and achieve greater efficiencies may also drive types of cooperation and information sharing between JV or alliance partners that may increase competition law risk.
Here we provide an overview of some of the main competition law and compliance risks to consider when planning Joint Ventures and alliances – especially when they are between competitors.
Antitrust and merger control rules are likely to be relevant throughout the creation and life cycle of a JV.
Consultant
Dean is a Solicitor Advocate who has more than 40 years' experience of construction, engineering and energy disputes in Hong Kong and in almost all countries in the Asia Pacific region as well as the Middle East, Africa, Europe, Russia and Latin America.
Partner
Rob is part of the firm’s construction and project solutions team. He specialises in the delivery of energy, natural resource/mining and infrastructure projects. Rob is Africa focused with extensive experience in construction advisory and global supply chain project execution mandates, including many across the continent.
Partner, Head of Middle East
Catherine is a member of the firm's global Board, and specialises in advising public and private sector organisations around the world on PFI and PPP transactions.
The initial phase of recovery from Covid-19 will require the restructuring of distressed infrastructure projects and programmes. This will include dealing with claims and disputes as well as refinancing of infrastructure projects and recapitalisation of supply-chains.
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The effective development of new pipelines of infrastructure projects at a national level and the procurement of new infrastructure projects as a part of government stimulus planning will need careful structuring and capacity planning.
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Transforming productivity is essential for the effective and efficient delivery of infrastructure projects. The effective implementation of innovation and technology and the need to develop new skill sets and leadership as well as improved governance of infrastructure projects will be essential in transforming productivity.
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