Newsletter-21

112 NEWSLETTER 2016 • In case of early termination of agreement and transfer of relates facilities to administration debt assumption to be pro- vided by administration for foreign financing of the health care projects. • Exoneration from the stamp tax in relation to all works and transactions between the administration and investor in rela- tion to the project. In both PPP’s, the public entity should hold an open call for pro- posals and conduct a public tender. In the Ecuadorian PPP, the selected investor will sign a special contract known as the “Delegated Manage- ment Contract”. Also, in the Ecuadorian PPP, investors may propose a project to the administration, or may participate in a previously pro- posed project. The call for proposals in both systems are not governed by the public procurement regulations currently in force, it is a special regime that seeks to simplify the award of contracts. In the Ecuadorian PPP, the contract will define how risk is shared with the public entity; the tax incentives for the investor; the legal sta- bility given to the investment in the event that local laws change, and dispute resolution. The Ecuadorian PPP Law emphasizes that the state will maintain control over strategic sectors; however, it grants private firms the right to bring some contract disputes to Latin American ar- bitration centers. The recourse to arbitration is limited -- Article 19 of the Ecuadorian PPP Law states that issues related to taxation or any other action directly related to the legislative and regulatory power of the Ecuadorian State shall not be subject to arbitration. Turkish PPP Law on the other hand provides that the arbitra- tion is an option so long as the seat of arbitration is in Turkey, in the Turkish language and in accordance with the International Arbitration Law (law numbered 4686 dated 21/6/2001) which allows institutional arbitration or ad hoc arbitration. In both PPP arrangements, financing of the projects are responsi- bility of the private investors. In the Ecuadorian PPP Law, the external financing or third party financing is mentioned mostly for the applica- tion of the incentives. On the other hand, Turkish PPP Law provided specifically step-in right of the financiers and administration’s limit