Challenges can arise due to differences in regulation between levels of government, such as between the local authority, state/provincial level and national level, and also because different aspects of a project are regulated by different government agencies. If agreements are not reached with relevant local authorities on projects procured (e.g. by a national government before financial close) delays to approvals and potentially additional taxes may be imposed, as has been the case in several jurisdictions.
EXAMPLE Construction permits During construction of the Brabo 1 Light Rail project in Belgium, an issue occurred where the Project Company's construction permit was revoked because of public objections to the proposed developments. A new permit was, however, issued a few months later. Together with the Project Company, the Procuring Authority worked as a partner to resolve the issue. For more information, see the Brabo 1 Light Rail Case Study. |
It may be appropriate in these circumstances for the Procuring Authority to work with the Project Company in engaging with other government agencies, particularly where the Procuring Authority has a stronger relationship with those other government agencies. Working with other government agencies during key transition phases is detailed in Section 3.1 (Transitions).