In January 2020, the Agency for the Special Economic Zones (AZES) in the Democratic Republic of Congo signed a PPP contract with IOS Partners Inc., was hired to manage, develop and operate the Maluku Special Economic Zone (SEZ) located 50km outside of the capital Kinshasa. IOS Partners, Inc. was instrumental as the transaction advisor in providing legal support and assistance to the Fragile States Finance Implementation Unit (Cellule d’exécution des financements en faveur des Etats fragiles or CFEF), acting as the mediator between all parties during the negotiation process. Following successful contract signature for the development and operation of the Maluku SEZ, IOS Partners was hired again by the CFEF in July 2020 to help build the PPP contract management and monitoring capacities of the AZES through the implementation of a 3-week virtual training program. This highly comprehensive and detailed training course on PPPs and PPP contract management for special economic zones was provided to the AZES key staff and personnel in 7 separate online modules, broken down as follows:
- Added value of the private sector in good governance of SEZs – with a legal perspective;
- PPPs and SEZs;
- Procurement and public procurement processes;
- Development contracts: content, negotiation, legal and transactional advisers;
- Contract management;
- Renegotiation, termination, and arbitration; and
- Socio-environmental and financial concerns related to the development and operation of SEZs.
The course included key tools, instructions, and guidelines on PPP contract cost and risk management and monitoring, performance management, and governance of SEZs in terms of environmental and social responsibility. Through this training as well as the respective contract management and monitoring tools that were developed and produced by the IOS Partners team in parallel, a more formalized and structured contract management framework can now be established by AZES staff to more effectively meet their needs and objectives with regards to managing SEZs in the DRC.
