Challenges may arise with a new central or regional government due to newly elected politicians that may not be familiar with the project, having a different approach to the project or having a mandate to change the approach to PPPs. One way of managing this is to set up a dedicated team to manage the PPP projects project, and in such a way to mitigate, to the extent possible, the risk of external political changes having an adverse impact on the project, to the extent possible.
Changes can also be managed by deploying specialised legal or other expertise. For example, where a change requires a renegotiation, or a change in law or material adverse government action claim, which are detailed in Section 3.5 (Claims) and Chapter 4 (Renegotiation). Guidance on managing a transition between governments is detailed in Section 3.1 (Transitions).
| EXAMPLE Setting up a dedicated Project Management Unit The Project Management Unit (PMU), established by the Jordanian Ministry of Transport on the Queen Alia International Airport Expansion project in Jordan, played a key role in managing the risk of political and institutional changes that were not related to the project itself. The airport expansion was a high-profile, high-value project, which meant setting up a dedicated unit was the most effective solution. The PMU team had sufficient authority and remained the same throughout a variety of political changes, ensuring continuity of knowledge and contract management. For more information, see the Queen Alia International Airport Expansion Case Study. |
| EXAMPLE Setting up a dedicated management agency The Procuring Authority for the Gautrain Rapid Rail Link project in South Africa began as the Department for Roads and Transport in the Gauteng Province. Given the size and complexity of the project, a specialised agency, the Gautrain Management Agency, was set up to monitor and manage the project. This allowed the team to focus entirely on the project and its challenges, although it still relied on external consultants. For more information, see the Gautrain Rapid Rail Link Case Study. |