The final task in managing a PPP contract is to manage the transition of assets and operations at the end of the contract term. The approach to this transition should be clearly defined in the contract. As set out in Section 3.4: Designing PPP Contracts, this typically includes defining how quality of the assets will be defined and assessed, whether a payment will be made on asset handover, and how the amount of any payment will be determined. Options include clearly specified handover requirements, or the involvement of independent assessors.
As noted in The World Bank's toolkit for PPPs in roads and highways section on hand back of facilities at contract end [#28 2, Module 5, Stage 5], there has been relatively limited practical experience in completion of PPP agreements. Equally, there is limited practical guidance on dealing with this stage of contract management.
Key References: Managing PPP Contracts | |
Reference | Description |
4ps (2007) A Guide to Contract Management for PFI and PPP Projects, London | Provides guidance intended for local authorities in the United Kingdom responsible for monitoring PPP contracts: from setting up the contract management approach, to managing service performance, relationships, and contract administration. Includes checklists and a "troubleshooting" guide as appendices |
South Africa, National Treasury (2004) National Treasury PPP Manual Module 6: Managing the PPP Agreement, Johannesburg | A comprehensive guide to PPP agreement management in South Africa, from setting up the institutional framework, to managing over the project lifetime, dealing with change, through to the end of the contract. Describes two key tools: the PPP Agreement Management Plan, and the PPP Agreement Management Manual |
United Kingdom, Her Majesty's Treasury's Operational Taskforce Notes. Includes: (2006) Note 1: Benchmarking and Market Testing Guidance (2007) Note 2: Project Transition Guidance | Provides detailed guidance for PPP implementing agencies on four elements of PPP contract management: benchmarking and market testing; "project transition", which covers setting up a contract management framework; managing contract variations; and managing contract expiry |
Farquharson, Torres de Mästle, and Yescombe, with Encinas (2011) How to Engage with the Private Sector in Public-Private Partnerships in Emerging Markets, World Bank/PPIAF | Chapter 10: After Signing provides an overview of what is needed for successful contract management, with an emphasis on experience in emerging markets. It includes tips on managing contracts, and a case study on contract management for a water concession in Sofia, Bulgaria |
Zevallos Ugarte, J. C. (2011) Concesiones en el Perú: Lecciones Aprendidas, Lima, Perú: Fondo Editorial de la USMP | Describes lessons learned from Perú's PPP program, including a description of the regulatory and contract monitoring arrangements |
World Bank (2006) Approaches to Private Participation in Water Services: A Toolkit | Section 7 provides guidance on developing institutional arrangements to manage the PPP contract relationship. It includes guidance on how to decide which government institution should be allocated which role, on relationship management, and tools to deal with change |
Fortea, Torrodellas, Vitoria, Tejerina & Millan (2011) Proyecto Fin de Master: Seguimiento de una concesión, Madrid, España: Universidad Politécnica de Madrid | Describes the Spanish methodology for the monitoring of PPP projects. www.csg-master.com/proyectos |
Australia, Partnership Victoria (2005) Contract Management Guide, Melbourne | Describes key elements of effective relationship and contract management, and provides detailed guidance, and templates and tools, on all stages of contract management |
India, Planning Commission (2009) Guidelines for Monitoring of PPP Projects, New Delhi | Describes institutional frameworks for monitoring PPPs, and includes annexes with sample monitoring reports |
United Kingdom, National Audit Office (2001) Managing the Relationship, to Secure Successful Partnership in PFI Projects: Report by the Comptroller and Auditor General (HC 375) London | This report was based on a survey of contractors and government officials on what makes for successful PFI contract management. It emphasizes the need for: public authorities to address the question of contract management early in the project preparation; appropriate skills in the public authority; and an open and cooperative attitude |
Quick, R. (2003) Long-term ties: Managing PPP contracts, Public Infrastructure Bulletin, 1(2) 12 | Briefly describes key features of successful contract management arrangements, drawing on Australian experience |
United Nations (2011) A Guidebook on Public-Private Partnership in Infrastructure, Bangkok, Thailand: United Nations Economic and Social Commission for Asia and the Pacific | Chapter 6 provides guidance on contract management intended for developing country governments, focusing on institutional arrangements and dispute resolution |
Groom, E., Halpern, J. & Ehrhardt, D. (2006) Explanatory Notes on Key Topics in the Regulation of Water and Sanitation Services, Water Supply and Sanitation Sector Board Discussion Paper Series No. 6, World Bank | Note 4 describes the relationship between sector regulation and PPP contracts |
European PPP Expertise Centre (2011) A Guide to Guidance: Sourcebook for PPPs (Version 2) Luxembourg | Chapter 4: Project Implementation, Section 4.1: Contract Management describes and provides links to further references on some key issues in contract management, including attributing management responsibilities, managing project delivery, managing change, dispute resolution, and termination |
World Bank (2012) Body of Knowledge on Infrastructure Regulation | Section IV: Price Level Regulation describes key issues in tariff regulation, and guides readers in accessing a wide range of references. |
United Kingdom, Department of Health (2006) Benchmarking and Market Testing in NHS PFI projects: Code of Best Practice, London | Provides guidance intended for contract managers on how to use market testing exercises to review the cost of "soft" services in health sector PPPs |
Jose Luis Guasch (2004) Granting and Renegotiating Infrastructure Concessions: Doing it Right, World Bank | Reviews the occurrence and drivers of re-negotiation in PPP contracts in Latin America, and provides some policy lessons for reducing the prevalence of early renegotiations |
David Ehrhardt & Tim Irwin (2004) Avoiding Customer and Taxpayer Bailouts in Private Infrastructure Projects: Policy toward Leverage, Risk Allocation, and Bankruptcy, World Bank Policy Research Working Paper 3274 | Describes the experience of default and re-negotiation in several PPP contracts including the Melbourne Tram and Train concession, and the United Kingdom National Air Traffic Services PPP |
Australia, Auditor General Victoria (2005) Franchising Melbourne's Tram and Train System, Melbourne | Reviews the renegotiation process for the Victoria Tram and Train system PPP, as well as describing the difficulties with the original franchises that led up to renegotiation |
Johnston & Gudergan (2007) Governance of PPPs: Lessons Learnt from an Australian Case? International Review of Administrative Sciences, 73(4) 569-582 | Reviews the experience of the Sydney Cross-City Tunnel PPP contract, drawing lessons for PPP contract management |
Triantafilou, E. E. (2009) No Remedy for an Investor's own Mismanagement: The Award in the ICSID Case Biwater Gauff v. Tanzania, International Disputes Quarterly, Winter 2009, 6-9 | Reviews the international arbitration settlement of a water service PPP in Tanzania |
Overly, M. S. (2010) When Private Stakeholders Fail: Adapting Expropriation Challenges in Transnational Tribunals to New Governance Theories, Ohio State University Law Journal, 71(2) 341-380 | Describes challenges in international arbitration mechanisms, with case studies of arbitrations |
World Bank (2009) Online Toolkit for Public Private Partnerships in Roads and Highways | Module 5: Implementation and Monitoring includes a section on "hand back of facilities at contract end", which describes some key considerations at this stage |