As described in the European PPP Expertise Centre's Managing PPPs during their contract life1, the Procuring Authority should carry out periodic PPP contract reviews. These reviews should aim to identify any changes required by a changing environment (e.g. a change in the Procuring Authority's requirements) and to assess the Project Company's overall performance under the PPP contract. For example, this may involve a full technical, financial and legal review taking place every five years, which may lead to a renegotiation being initiated by the Procuring Authority.
Several case studies highlighted the types of opportunities that may arise over the contract period, including increases in demand, availability of new technology and the availability of better financing rates.
| EXAMPLE Opportunities to be assessed The original plan for expanding the Queen Alia International Airport Expansion project in Jordan had been to execute the project in two stages. Once it became clear that the first stage of expansion would not be sufficient to account for passenger growth, both parties agreed to change the design to allow the expanded terminal to be able to accommodate higher volumes than originally estimated. The incentives for both parties were in alignment, and the changes had a positive impact on the project. For more information, see the Queen Alia International Airport Expansion Case Study. |
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1 Available at http://www.eib.org/infocentre/publications/all/epecmanaging-ppps-during-their-contract-life.htm.