Article 196. Definition and regulation.

1. To finance the construction, acquisition and completion of public or public utility works, granting bodies may stipulate financial leasing contracts. 2. The financial leasing company purchases an existing asset or to be created and transfers it for use, for a certain period of time, to the public administration upon payment of a fixed periodic fee, including any ancillary services. 3. If the contract framework provides for the transfer of operational risk, pursuant to article 177, the rules on concessions and other public-private partnership contracts shall apply, although not provided for in this article. Otherwise, the provisions relating to public works contracts will apply. 4. To award the contract referred to in paragraph 1, the granting body shall base the tender on at least one feasibility project, including the financial plan. The successful tenderer prepares the subsequent project levels and carries out the work. 5. If the bidder is a temporary grouping of companies made up of the financing entity and one or more implementing entities, each is responsible in relation to the specific obligation assumed in the contract . The financing entity can also present the offer individually, in this case resorting to the assistance of the implementing entity. 6. One or more subjects constituting the temporary business association, in the event of the opening of judicial liquidation, non-fulfilment or occurrence of any cause impeding the fulfillment of the obligation, may be replaced during the tender or execution phase with other subjects having the same requirements and characteristics. The granting body can deny consent only in cases in which the person indicated to take over does not possess the necessary subjective and objective requirements. 7. The fulfillment of the obligations of the granting body remains in any case conditional on the outcome positive test, i.e. verification of conformity regarding the functional management of the work according to the established methods. The successful tenderer ensures the correct maintenance of the asset until the time of redemption. 8. The work subject to financial leasing follows the public works regime for urban planning, construction and expropriation purposes provided that, in the contract itself, it is established that at at the end of the rental period the client is obliged to redeem. The granting body can grant the surface right on the public area where the work is to be carried out. 9. The work can also be carried out on an area available to the successful tenderer. Even in this case, the first sentence of paragraph 8. 10 applies. The contract provides for the option of early redemption. EFFECTIVE FROM: 1 July 2023