By their very nature as long-term large infrastructure projects, public-private partnership (PPP) projects involve a vast array of interconnecting relationships. Core to any PPP project is the long-term contractual relationship between the government’s procuring authority and the private party (the project company). This is one of many relationships that will affect the success of a PPP.
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.
How can governments deliver quality infrastructure outcomes?
Early termination of a PPP contract can be an expensive process for all parties involved.
Tackling the global infrastructure gap remains a priority for governments to drive inclusive growth and deliver quality infrastructure projects for their citizens.
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.
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National PPP Unit
The Global Infrastructure Hub (GI Hub) has appointed Maritime & Transport Business Solutions (MTBS) to support the development and delivery of an early market consultation for the Ports Privatisation Program in Brazil, which is a key aspect of GI Hub’s Brazil Country Program.