Contract Termination or Expiry Phase

4.2.10  As the contract draws to a close (for whatever reason), the GPE has to assess the various options available to itself. The GPE's main concern at this phase is to ensure a smooth transition of service delivery from the PPP provider to the GPE or to another service provider. This is critical as the GPE is still responsible to deliver its core services to the public. Depending on the options available in the contract, and on the GPE's requirements at that time, the assets or facility may be transferred to the GPE or remain with the PPP provider.

4.2.11  Some key issues the GPE should consider as it prepares itself for this phase are:

a)  What are the criteria for deciding whether to extend the services of the PPP provider, to engage another service provider, or to provide the services itself?

b)  What are the prerequisite resources (e.g. land, facility, equipment, intellectual property, manpower, documentation, etc.) that the GPE will need in order to provide the services on its own?

c)  Would the change of service provider cause a change in the way the GPE provides its core services to the public?

d)  Is there still the business need for the core services the GPE is providing?

4.2.12  If the GPE is likely to need the PPP facility even after the expiry of the existing PPP contract, the GPE should work with the existing PPP provider to ensure that the latter continues to maintain the facility (setting aside the contractually agreed portion of its unitary payment to a dedicated lifecycle maintenance account) even as the existing contract nears expiry.