North Macedonia’s 2026 amendments to the Law on Concessions and Public-Private Partnership (Official Gazette No. 96/2026) introduce two significant new mechanisms: the ability for private entities to submit self-initiated PPP proposals, and a new institutional PPP structure based on a jointly-owned special purpose company. Both changes open new avenues for private sector participation in public infrastructure. This page is part of our practice in business and corporate law. 

The Assembly of the Republic of North Macedonia adopted amendments to the Law on Concessions and Public-Private Partnership, introducing for the first time into the domestic legal framework the concepts of “self-initiated proposal”, “private initiator”, and “institutional public-private partnership”. The amendments were published in the Official Gazette of the Republic of North Macedonia No. 96/2026.

Self-Initiated Proposals and the Private Initiator

Under the new provisions, legal entities, natural persons, and consortiums are granted the possibility, as “private initiators”, to proactively submit proposals for the establishment of a public-private partnership. The Law provides that a “self-initiated proposal” represents a proposal for establishing a public-private partnership submitted independently by the private initiator on its own initiative.

Pursuant to the amendments, a private initiator may at any time submit a self-initiated proposal containing, at minimum, information regarding the nature of the project, the public infrastructure to be developed, the public services to be provided, possible implementation scenarios, technical and financial feasibility, and consistency with the public interest. The proposal must be accompanied by a feasibility study justifying the award of the public-private partnership agreement.

At the same time, the Law introduces limitations regarding projects which may be subject to a self-initiated proposal. Such a proposal may not relate to a project already included in the public partner’s work program, planning or strategic documents, a project prepared by the public partner, or a project for which a procedure for awarding a public-private partnership agreement has already been initiated.

Review Process by the Public Partner

The amendments establish a structured review process applicable to the public partner. Upon receipt of the self-initiated proposal, the public partner is obliged within 30 days to conduct a review and assessment of the submitted documentation and feasibility study. During this process, the public partner may request additional information from the private initiator, who is obliged to respond within 10 days.

Institutional Public-Private Partnership

In addition to contractual public-private partnership, the amendments for the first time regulate “institutional public-private partnership”. Unlike the traditional contractual PPP model, this structure enables cooperation between the public partner and the private partner through joint investment in a commercial company established for the implementation of the agreement for establishment of the public-private partnership.

In the case of institutional public-private partnership, the tender documentation must define the legal form of the entity, capital participation ratios, obligations of the preferred bidder and the public partner, as well as other matters related to the establishment and operation of the special purpose company. The draft incorporation agreement of the project company shall form an integral part of the tender documentation.

This institutional public-private partnership structure may prove particularly relevant for large-scale infrastructure, energy, transport, utilities, healthcare, and municipal projects where long-term operational alignment between the public and private sectors is commercially desirable.

Practical Implications for Investors

From a practical perspective, the amendments create new opportunities, but also introduce important strategic considerations for potential investors. Private initiators will need to carefully assess whether a proposed project genuinely falls outside existing public programs, planning or strategic documents, or already initiated procedures before investing in feasibility work and proposal preparation.

At the same time, the amendments signal a broader policy direction toward greater private-sector participation in the development of public infrastructure and public services in North Macedonia. If implemented efficiently and supported by institutional capacity, the new framework may increase market interest in public-private partnership projects and provide additional flexibility for both public authorities and investors seeking alternative project delivery models.

Practical Checklist

For private entities considering a self-initiated PPP proposal in North Macedonia, verify the following: (1) Check that the project is not already in public plans — a self-initiated proposal is inadmissible if the project is already in the public partner’s work program, planning documents, strategic documents, or if a PPP award procedure has already been initiated for it. Conduct thorough due diligence before investing in feasibility work. (2) Prepare a comprehensive feasibility study — the proposal must include minimum content (project nature, infrastructure to be developed, services to be provided, implementation scenarios, technical and financial feasibility, public interest consistency) plus an accompanying feasibility study. (3) Allow 30 days for public partner review — the public partner has 30 days to review the submission. If additional information is requested, you must respond within 10 days. (4) For institutional PPP — if the project is suited to the institutional model (joint special purpose company), ensure the tender documentation addresses: legal form of the SPV, capital participation ratios, obligations of both partners, and the draft incorporation agreement. (5) Consider sectors most suited to institutional PPP — infrastructure, energy, transport, utilities, healthcare and municipal projects are identified as the most commercially relevant sectors for long-term public-private operational alignment. 

Frequently Asked Questions

Who can submit a self-initiated PPP proposal in North Macedonia?

Legal entities, natural persons and consortiums can all act as private initiators and submit self-initiated PPP proposals under the 2026 amendments. There is no restriction based on the nationality or domicile of the private initiator.

What minimum content must a self-initiated proposal contain?

At minimum: the nature of the project, the public infrastructure to be developed, the public services to be provided, possible implementation scenarios, technical and financial feasibility, and consistency with the public interest. The proposal must also be accompanied by a feasibility study justifying the award of the PPP agreement.

What projects cannot be the subject of a self-initiated proposal?

A self-initiated proposal cannot relate to: (1) a project already included in the public partner’s work program, planning or strategic documents; (2) a project already prepared by the public partner; or (3) a project for which a PPP award procedure has already been initiated. Private initiators must verify these conditions before committing resources to feasibility work.

What is the difference between contractual and institutional PPP?

Contractual PPP is the traditional model where the public and private partners cooperate through a contract. Institutional PPP — introduced by the 2026 amendments — goes further by enabling both partners to jointly establish and invest in a special purpose company (SPV) that implements the PPP agreement. This creates a shared ownership structure suited to long-term, large-scale projects.

How long does the public partner have to review a self-initiated proposal?

The public partner has 30 days from receipt of the proposal to conduct its review and assessment. During this period, it may request additional information from the private initiator, who must respond within 10 days.