ITF Roundtable Reports

English
ISSN: 
2519-8785 (online)
ISSN: 
2519-8777 (print)
http://dx.doi.org/10.1787/25198785
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ITF Roundtable Reports present the proceedings of ITF roundtable meetings, dedicated to specific topics notably on economic and regulatory aspects of transport policies in ITF member countries. Roundtable Reports contain the reviewed versions of the discussion papers presented by international experts at the meeting and a summary of discussions with the main findings of the meeting.

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Public Private Partnerships for Transport Infrastructure

Public Private Partnerships for Transport Infrastructure

Renegotiation and Economic Outcomes You do not have access to this content

English
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Author(s):
ITF
24 Feb 2017
Pages:
156
ISBN:
9789282108130 (PDF) ;9789282108123(print)
http://dx.doi.org/10.1787/9789282108130-en

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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.

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  • Acknowledgements
  • Executive summary

    Public-Private Partnerships (PPPs) are complex financing structures involving substantial transaction costs, with the legal documentation alone often consisting of several hundred pages. Despite the care taken in preparing PPPs, renegotiation is a common occurrence and can have an impact on value for money. It is not clear, however, whether this reflects the impossibility of any contract to foresee every eventuality or is usually the result of more mundane explanations.

  • Overview of discussions

    Public-Private Partnerships (PPPs), sometimes referred to as P3s, are complex financing structures involving substantial transaction costs, with the legal documentation alone often consisting of several hundred pages. Despite the care taken in preparing PPPs, renegotiation is a common occurrence and can have an impact on value for money. It is not clear, however, whether this reflects the impossibility of any contract to foresee every eventuality or is usually the result of more mundane explanations

  • Renegotiations in public-private partnerships: Theory and evidence

    Public-private partnerships (PPPs) have the potential to increase efficiency and improve resource allocation. However, contract renegotiations are common and make us question the benefits of PPPs.

  • The renegotiation of public-private partnership contracts: An overview of the recent evolution in Latin America

    This chapter analyses the experience of renegotiations in Latin America: the lessons learned, reflections made and their high incidence, based on the evolution of PPP contracts over the last 25 years.

  • Renegotiation of transportation public-private partnerships: The US experience

    Public-private partnerships (PPPs) typically rely on long-term contracts between participants. When conditions arise that fall outside the expectations embodied in the contract, one party may seek to renegotiate the contract terms. Globally, the frequency of PPP contract renegotiations has been sufficient to raise questions regarding why these events occur and what their consequences are for the projects and society. The literature highlights four relevant causes behind renegotiation occurrences: unexpected exogenous changes, the complexity of the contractual relationship, winner´s curse and rent seeking behavior.

  • Institutional and political determinants of private participation in infrastructure

    This chapter brings together a large panel of project-level technical and financial data and country-level economic, institutional, political and governance variables, to assess the determinants of private financing of infrastructure in emerging markets and developing economies.

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