4.1.25 The unique nature of a PPP project necessitates a different, new approach and attitude towards managing the PPP provider. Mutual trust and understanding, openness, and excellent communications are as important to the success of an arrangement as the fulfilment of the formal contract terms and conditions.
4.1.26 Throughout the duration of a PPP project, there will be some tensions between the different perspectives of the GPE and the PPP provider. Managing the PPP provider is about resolving or easing such tensions to build a relationship with the PPP provider based on mutual understanding, trust, open communications and benefits to both the GPE and the PPP provider based on the PPP contract - a "win/win" contractual relationship.
4.1.27 Since the PPP project lasts for a very long time, the GPE should take a long term view of its approach in managing the PPP provider. Just as the contractual and commercial aspects are important, the relationship between the GPE and the PPP provider is equally vital to the success of the PPP project. In long term contracts such as PPP, the interdependency between the GPE and the PPP provider is inevitable, and it is therefore in the interests of both parties to make the relationship work. The switching costs involved in changing to any alternative provider in mid-term are likely to be very high and, in any case, contractual realities may make such a course of action highly unattractive.