The participants of the second Regional Roundtable on Infrastructure Governance held in Côte D’Ivoire last week reinforced the need for good governance across all stages of infrastructure delivery. The Regional Roundtable was the second of its kind, with the first held in South Africa in November 2017.
With a growing global focus on attracting private sector investment into infrastructure and utilising the public-private partnership (PPP) model, it is crucial that governments focus on the entire duration of a PPP contract. Efforts need to extend beyond ‘achieving financial close’ and beginning construction or ‘cutting the ribbon’ for commencement of services.
Disputes in public-private partnerships (PPPs) globally involving key performance indicators (KPIs) represent 20 per cent of all disputes, as highlighted in our data using a representative sample of projects from around the world.
Private partner profit motives are frequently cited as a failure of the public-private partnership (PPP) approach. But those profit motives are also part of the fundamental make up of the PPP approach and why it has the potential to deliver better outcomes for the public.
Transferring risk to the private sector in a PPP contract is frequently referred to as a key part of a PPP arrangement, as well as a key reason why governments use such an approach to procure infrastructure.
Public-private partnership (PPP) contracts are long-term and they may have a duration of 20 to 30 years or more. Today, where technologies and social priorities (such as views on climate change and sustainability) are changing at an accelerated pace, it perhaps comes as no surprise that changes to PPP contracts through renegotiations are common.
Contractual disagreements and disputes are common in PPPs during both construction and operational periods.
Early termination of a PPP contract can be an expensive process for all parties involved.
The term of a public-private partnership (PPP) contract can exceed 20 or even 30 years. At the end of the term, the relevant private partner is often obligated to hand back the public asset in question (whether it be a road, an airport or a hospital) in a condition that meets the government procuring authority’s expectations.