Introduction

Guideline on resolving disputes arising out of public-private agreements (Policy No: 2022/G-42) (“Dispute Settlement Policy”) was published in the Government Gazette on 28th November 2022. The policy aims to provide a robust mechanism for settling public-private disputes out of court whilst allowing the State to minimize their losses.

The policy governs disputes arising between 7th August 2008 and the effective date of the Dispute Settlement Policy (ie 28th November 2022). It is applicable on public-private disputes where the government has either terminated the agreement, or failed to perform according to agreement, or breached the agreement, or withheld permission or terminated permission.

Submission of disputes

1. If the dispute has already been submitted and it has remained unresolved for 3 years, then it may be settled through this policy. 
2. If the dispute has not yet been submitted, then it must be submitted within 30 days from 28th November 2022. If the dispute concerns an agreement, then it must be submitted to the Ministry that entered into the agreement. If the dispute concerns an approval for business, that it must be submitted to the authority that regulates such businesses.

Dispute resolution procedure

Under the Dispute Settlement Policy, disputes are to be resolved by a Dispute Settlement Committee (“Committee”) consisting of people from various ministries and other parties as necessary.

Disputes are first examined by the relevant Ministry. If there is a need by the petitioner to provide information verbally, it can be done so in a meeting where meeting minutes will be recorded. Then, the Ministry will submit all relevant documents, including the meeting minutes, to the Committee. The meeting minutes will only be accepted if it has been signed by both parties. Disputes that fall under point 1 of the first heading above shall be sent to the Committee within 90 days from 28th November 2022. Disputes that fall under point 2 shall be sent to the Committee within 60 days from the date of submission. The calculation of these days will include public holidays. 

The Committee will advise to settle the matter out of court only if:

The Committee will also submit each case to the Economic Council (“Council”) after examination. The Council will either accept or make the Committee reconsider their decision. If the Council sees fit, the Ministry will enter into a settlement agreement with the petitioner. 

Resolutions

Disputes may be resolved either by:

• Reinstating agreement and entering into new one
  » In a case where the agreement to lease a premise cannot be reinstated because the original premise cannot be handed over again, the Committee will show an alternative premise that can serve the purpose of the original lease.
• Issuing or renewing permit/license
• Awarding or arranging damages
  » In this case, alternative relief will be prioritised over financial compensation.

In the resolution of these disputes, if the Committee identifies people who have caused loss to the Government, they will be reported to the relevant authorities for legal action. 

The Dispute Settlement Policy allows for a more transparent and easier way to settle public-private disputes out of court without the need to undergo lengthy inquisitions and trials. With the proper strategic legal plan, petitioners who undergo the mechanism under this policy will benefit greatly.