2.3.5 It is important that the contract itself stipulates clearly the contractual rights and responsibilities of the Agency and the PPP provider. A comprehensive PPP contract should address the treatment of issues identified in Table 2.3.1, under each phase of the project.
Table 2.3.1 Issues that should be addressed in a PPP contract
Issue | Construction | Service | Contract Expiry |
Tenure and Continuing Access Rights | X | X | X |
Commissioning of the completion of construction | X |
|
|
Service Delivery Performance Requirements | X | X |
|
Availability of Contracted Services |
| X |
|
Payment | X | X | X |
Performance measurement and monitoring |
| X |
|
Price Review and Adjustments |
| X |
|
Ownership of Land and Facility | X | X | X |
Intellectual Property | X | X | X |
Step-in Rights | X | X |
|
Insurance | X | X | X |
Changes in Service Requirements | X | X |
|
Technical Upgrade and Technology Obsolescence |
| X |
|
Change Management | X | X |
|
Ongoing Review |
| X |
|
Contingency Planning | X | X |
|
Dispute Resolution | X | X |
|
Termination of Contract |
|
| X |
End of Term Arrangements |
|
| X |
2.3.6 The contract should also cover allocation of risk, the quality of service required, and procedures for variation of service scope and dispute resolution procedures. The agency can also consider building reductions in prices, improvements in price, quality or service, built into the contract terms.