3.4.3  Legal Due Diligence

The Legal Advisor, hired as part of the Transaction Advisor Consortium, is encouraged to undertake an extensive review of the existing Dubai regulatory environment that covers all the legal aspects relevant to the implementation of this Project. The legal Due Diligence should address the following issues:

  PPP-specific, land, construction, and operation related issues;

  Review of employment law that private sector operators will have to abide by, including regarding the transfer of staff;

  Review of applicable Federal Laws relevant to the implementation of the project;

  Any existing contracts that private sector operators will have to honour;

  The regulations regarding the production of an adequate, bankable security package;

  The rights of private sector operators, such as an ability to grant security over bank accounts receive payment, and collect revenue directly from end users;

  Currency matters and monetary regulation as to whether the Project can be denominated in currencies other than Dirhams; and,

  Any existing loan tenor regulations, exchange controls; and, regulations regarding interest rate swaps.