The client is an experienced healthcare operator and investor looking to bid for a private public partnership arrangement with the Lagos State Government to build a 140-bed state-of-the-art-hospital catering to a wide range of medical needs and setting new standards for healthcare delivery in Lagos and valued at N49 billion (the “Lagos Medipark”).
At the time of engagement, (a) promoters faced a tight deadline to prepare and submit their bid, necessitating rapid yet thorough legal and technical reviews; (b) the diverse nature of the consortium members made it essential to quickly draft and negotiate preliminary consortium arrangements to clearly define roles, responsibilities, and liabilities; and (c) it was also of utmost priority to promoters that critical legal issues in the draft Public Private Partnership Agreement with the Lagos State Government be addressed in a timely manner.
Approach and Outcome
Our approach to this instruction was defined by strategic planning, thorough preparation, and collaborative execution. Amongst others, we (i) deployed a dedicated team of lawyers to work intensively on reviewing the RFP Documents, preparing all bid documents and submitting the bid within the given timeframe (ii) prioritised key tasks such as compliance reviews and risk assessments to meet submission deadlines (iii) Drafted a preliminary consortium agreement that balanced responsibilities and liabilities while ensuring cohesive collaboration (iv) established and structured the relevant special purpose vehicles to meet the promoters’ strategic objectives (v) deployed a dedicated team of lawyers to work intensively on reviewing the public private partnership agreement with Lagos State Government and identify key issues around risk allocation, revenue sharing mechanisms, termination and step-in rights, IP rights, State contributions, amongst others (vi) provided legal advice and guidance around the legal framework for public private partnerships in Nigeria as well as in connection with sector-specific regulations. Our support was crucial to winning the bid and the execution of public private partnership agreement of the Lagos Medipark.
Key Takeaways
The key takeways for us on this instruction are as follows:
- Early Legal Involvement: Engaging legal advisors at the inception of the bid process significantly enhances compliance and bid competitiveness.
- Comprehensive Due Diligence: Thorough regulatory and contractual reviews are critical to mitigate risks and ensure project feasibility.
- Stakeholder Collaboration: Open and transparent communication among consortium members and with public authorities is key to successful PPP execution.
- Strategic Legal Counsel: This project underscores the value of strategic legal counsel in PPPs, particularly for infrastructure-based projects in highly regulated sectors like healthcare. Our firm’s expertise in bid preparation, contract negotiation, and regulatory compliance played a pivotal role in delivering a successful outcome for the client.
This publication is not intended to provide legal advice and is not prepared with a specific client in mind. Kindly seek professional advice specific to your situation. You may also reach out to your usual Balogun Harold contact or contact us via support@balogunharold.com for support.
