UN trade body adopts model laws curbing potential for private-public corruption

The United Nations body entrusted with harmonizing international trade law today adopted a set of model legislative provisions on privately financed infrastructure projects, including awarding concessions and contracts, aimed at curbing the potential for corruption between private investors and public authorities.

The provisions, adopted at the 36th annual session of the UN Commission on International Trade Law (UNCITRAL) in Vienna, offer concrete legislative guidance on essential elements of a favourable framework for private investment in public infrastructure.

This includes authority and procedures for awarding infrastructure concessions, financial and contractual arrangements for infrastructure development and operation, termination of contracts and dispute settlement.

"The model provisions may assist in enhancing legal clarity and accountability to curb legislative grey areas that provide opportunities for arbitrariness or corruption in the relationship between private investors and public authorities," UNCITRAL said in a press release.

The provisions, prepared with the assistance of outside legal experts as well as feedback from members States in two intergovernmental meetings, are an addition to the UNCITRAL Legislative Guide on Privately Financed Infrastructure Projects adopted in 2000.

The Commission comprises 36 Member States elected by the General Assembly and is structured to represent the world's various geographic regions and its principal economic and legal systems. Members are elected for terms of six years, the terms of half the members expiring every three years. The General Assembly decided that, as from the annual session of the Commission in 2004, its membership would be increased to 60 States.