PPP Contract Management

Thematic Area

What is measured

How it is scored

PPP Contract Management

The procuring or contract management authority establishes a system to manage the implementation of the PPP contract.

A score of 1 if yes based on a regulatory provision. 

A score of 0.5 if yes based on a recognized practice.

 

PPP management tools.

A score of 0.25 if a regulatory provision includes the establishment of a PPP contract team.

A score of 0.125 if the establishment of a PPP contract team occurs as a recognized practice.

A score of 0.25 if a regulatory provision includes the participation of the members of the PPP contract management team in the PPP procurement process.

A score of 0.125 if that participation occurs as a recognized practice.

A score of 0.25 if a regulatory provision includes the possibility to consult with PPP procurement experts when managing the PPP contract.

A score of 0.125 if that consultation occurs as a recognized practice.

A score of 0.25 if a regulatory provision includes the elaboration of a PPP implementation manual or an equivalent document.

A score of 0.125 if that a manual or equivalent document is elaborated as a recognized practice.

 

The procuring or contract management authority establishes a system to manage the implementation of the PPP contract.

A score of 1 if yes based on a regulatory provision. 

A score of 0.5 if yes based on a recognized practice.

 

Mechanisms included in the PPP contract's monitoring and evaluation system.

A score of 0.25 if a regulatory provision mandates the private partner to provide periodic operational and financial data.

A score of 0.125 if provision of such data occurs as a recognized practice.

A score of 0.25 if a regulatory provision mandates the procuring or contract management authority to periodically gather information on the performance of the PPP contract.

A score of 0.125 if the periodical gathering of information occurs as a recognized practice.

A score of 0.25 if a regulatory provision mandates the procuring or contract management authority to establish a risk mitigation mechanism.

A score of 0.125 if the establishment of the risk mitigation mechanism occurs as a recognized practice.

A score of 0.25 if a regulatory provision mandates the availability of the PPP contract performance information to the public.

A score of 0.125 if the PPP contract performance information is available to the public as a recognized practice.

 

The PPP contract performance information is publicly available online on a specific website.

A score of 1 if yes.

 

The regulatory framework expressly regulates a change in the structure (i.e. stakeholder composition) of the private partner.

A score of 1 if yes based on a regulatory provision. 

A score of 0.5 if yes based on a recognized practice.

 

The circumstances that are specifically regulated.

A score of 0.5 if any change in the private partner during an initial period is regulated (e.g. construction and first five years of operation).

A score of 0.5 if a change affecting the controlling interest requires the replacing entity to meet the same technical qualifications as the original operator.

 

The regulatory framework expressly regulates the modification or renegotiation of the PPP contract (once the contract is signed).

A score of 1 if yes based on a regulatory provision. 

A score of 0.5 if yes based on a recognized practice.

 

The circumstances that are specifically regulated.

A score of 0.33 if a change in the scope and/or object of the contract is regulated.

A score of 0.33 if a change in the risk allocation of the contract is regulated.

A score of 0.33 if a change in the investment plan or duration of the contract is regulated.

 

The regulatory framework expressly regulates one (or more) circumstances that may occur during the life of the PPP contract.

A score of 0.25 if force majeure is regulated.

A score of 0.25 if material adverse government action is regulated.

A score of 0.25 if change in the law is regulated.

A score of 0.25 if refinancing is regulated.

 

The regulatory framework establishes a specific dispute resolution mechanism for PPPs.

A score of 1 if yes based on a regulatory provision. 

A score of 0.5 if yes based on a recognized practice.

 

The dispute resolution mechanism for PPPs.

A score of 1 if a regulatory provision details specific dispute resolution mechanisms.

A score of 0.5 if a dispute resolution mechanism is required to be regulated in the contract.

A score of 0.5 if arbitration is the only recourse available

 

The regulatory framework allows the lenders to take control of the PPP project (lender step-in right) if either the private partner defaults or if the PPP contract is under threat of termination for failure to meet service obligations.

A score of 1 if yes based on a regulatory provision. 

A score of 0.5 if yes based on a recognized practice.

 

Lender's step-in rights.

A score of 1 if they are expressly regulated by the regulatory framework.

A score of 0.5 if they are required to be regulated in the contract.

A score of 0.5 if a direct agreement is required to be signed with the lenders.

 

The regulatory framework expressly establishes the grounds for termination of a PPP contract.

A score of 1 if yes based on a regulatory provision. 

A score of 0.5 if yes based on a recognized practice.

 

The regulatory framework also establishes the consequences for the termination of the PPP contract.

A score of 1 if yes based on a regulatory provision. 

A score of 0.5 if yes based on a recognized practice.