3.2.3.4 Approach (d): All risk borne by the Private Partner -

This is highly unusual and likely to be achievable only in very established legally stable markets where the Private Partner is legally able to pass on any increased costs to third party users via a toll or tariff (i.e. under the "user pays" model - see Section G, PPP Contracts in Context and Section 1.2.2.6) and without adverse impact on user demand. Even so, certain events with a change in law effect are nonetheless likely to be dealt with specifically elsewhere in the PPP Contract (e.g. discriminatory actions such as expropriation and other MAGA types of event).

If the PPP Project does allow the Private Partner to transfer the costs of a change in law to its end-users, the protection which the Contracting Authority gives the Private Partner should be more limited.