International Trade in Services.pdf - DSpace at Khazar University

Understanding Trade in Environmental Services: Key Issues and Prospects 343
Table 10.5. (continued)
Facilitating commercial presence
Private participation
1. Is there a government monopoly in the environmental service sector such that private
investment is not permitted If so, in which subsectors
2. For environmental infrastructure services, how is private participation allowed
(concessions, build-operate-transfer concessions, and so on)
3. How is it regulated at the central and local levels What are the procedures and criteria
used Is preference given to any particular enterprise or group of enterprises Is it a
transparent process
Foreign ownership
1. In which segments is foreign ownership allowed in the provision of environmental
services
2. When laws restrict foreign shareholdings in local environmental companies, what is
the maximum foreign equity permitted or the minimum local shareholding
Screening laws
1. Are proposed foreign investments in the environmental sector subject to screening by
a specialized authority in the host state
2. Are there economic needs tests for the approval of foreign investment If so, in which
subsectors Are these tests transparent
3. Are there nationality or residency requirements for foreign investment for establishment
(for example, to gain the right to practice environment-related professional
services such as engineering)
4. Which authorities are charged with investment screening
5. Which criteria apply in evaluating applications for approval
6. Are investors offered rights of judicial review against unfavorable decisions by the
screening authorities Are clear administrative guidelines issued from which investors
can reasonably predict the responses of host state authorities to investment proposals
Legal and joint venture requirements
1. Are environmental firms required to establish locally through a particular legal form of
establishment (that is, subsidiary, branch, or representative office)
2. Are established foreign companies subject to specific performance requirements,
including (a) licensing requirements and technology transfer rules, (b) remittance and
foreign exchange restrictions limiting external financial transfers, and (c) local hiring
and sourcing requirements
3. Is entry of the foreign environmental firm conditional on the substantial involvement
of local participants in the ownership and management of the investment project
(joint venture requirement)
4. Is local control (for example, 51 percent or more of the equity contribution) required
for (equity, contractual) joint ventures Does the law provide for a progressive increase
in the control over such ventures
5. Are there requirements regarding the composition of the board of directors
6. What is the prescribed legal form of a joint undertaking (general partnership,
professional corporation, or limited liability company)
Measures relating to licensing
1. What laws and regulations govern the licensing of environmental activities
2. What types of licenses and regimes apply in different segments What is the rationale
for such licensing
(Table continues on the following page.)