Public Private Partnerships for Transport Infrastructure
Renegotiation and Economic Outcomes
Public-private partnerships (PPPs) are an important vehicle for private participation
in infrastructure investment, delivery and management. Renegotiations are an integral
part of the PPP process but their prevalence varies markedly in different parts of
the world. Renegotiations can be usefully employed to adjust the PPP contract to unforeseeable
events, beyond the control of contractual parties. There is also a danger, however,
that they will be used to change the initial balance of costs and benefits in the
contract.
The purpose of this report was to provide an overview of the nature of PPP renegotiations
in different regions of the world and at different times to help understand when PPP
contract renegotiations are desirable and when they are not. In general it is concluded
that when contracts are set up well, renegotiations should be few and far between.
Published on February 24, 2017Also available in: French