Question 10 of the PPP Green Paper In contractual PPPs, what is your experience of the phase which follows the selection of the private partner? |
Various contributions stress that contracting authorities must prepare the contract well, in order to avoid problems in the phase following the selection of the private partner. The scope of the project, the performance expected from the private contractor and the clauses on adaptation over time should in particular be precisely defined. One stakeholder cites cases in which risk could not be clearly allocated to the private partner because the technical and organisational framework was not clear enough. Another recommends defining precisely the condition in which state property used by the PPP contractor has to be returned. Otherwise, bidders that do not maintain such property properly can offer lower prices than their competitors.
One public body cites negative experiences following selection of the private partner, including the insolvency of the private party, price increases for the services performed by the partner and an oligopolisation of the relevant market. One Member State Government cites good experiences following the award of the project when both the construction and maintenance of a building were contracted to one and the same company.
One stakeholder considers regular reviews of the PPP contract essential.