5.7.4 Summary of Identified Issues

Relevant generic issues arising from this case study are:

-  Conflict management. Disputes can arise due to misunderstanding between partners. This may have significant implications with regard to achieving VfM, if, for instance, a replacement service provider (or concessionaire) is not secured or if shareholder interests on sale of PPP assets are given preference over wider community interests.

-  Contract termination. A receiver may be appointed by government (or a court) if consortia is unable to meet its statutory obligations and / or pay its debts. In some cases, such situations may arise from the sustained financial impact of lower than expected service user demand.

-  Reputation damage. Unless government takes action to quash or re-direct public concern over issues that are the responsibility of operators, it may be blamed (unjustifiably) for service delivery shortcomings. There may be occasions when government seeks to raise public awareness about its role in contractual agreements to assure tax payers, for example, that public funds are not being misused.

-  Contract management. The failure of public partners to effectively manage their oversight responsibility including seeking assurance that operator maintenance plans, operation and maintenance manuals, safety plans and asset management services have been implemented and kept up-to-date may lead to situations were operators fail to meet operational standards that increase risks to service users.