Chapters 1 and 2 establish some key principles of a JV and the forms a JV might take. Early consideration should next be given to the factors which can determine at a high level whether or not JVs have the potential to meet the public sector body's objectives. In particular, questions such as whether it is acceptable to operate with reduced public sector controls, and the extent to which it is possible to transfer risk effectively to appropriate parties (including in the event of failure of the JV) need to be thought through. The aim at this stage is to check whether there are inherent issues that would prevent a JV option being taken forward. This Chapter sets out some specific issues that the public sector body should consider at an early stage in determining if a JV is appropriate for their needs. This includes: ● the business scope and benefits which the JV is expected to deliver and potential risks; ● exit arrangements and consideration of any associated public service delivery implications; ● whether it has the legal power to enter a JV entity for the desired purpose; ● reputation risk; ● control and delegation issues; and ● possible competition, procurement law, State Aid and other statutory implications. |