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2018 | OriginalPaper | Buchkapitel

Renegotiating PPP Contracts: Opportunities and Pitfalls

verfasst von : Jean Beuve, Aude Le Lannier, Zoé Le Squeren

Erschienen in: The Economics of Public-Private Partnerships

Verlag: Springer International Publishing

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Abstract

This chapter reflects the double-sided view of the economic literature on contract renegotiation. The authors first describe opportunistic behaviors and the solutions to limit them. Second, they present renegotiation as a way to tackle necessary adaptation and incompleteness issues. They identify the contractual and institutional conditions enabling to favor efficient and balanced contracts life span.

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Fußnoten
1
Data from infrastructure construction projects, British National Audit Office (2003).
 
2
Data from the United States Government Accountability Office (2009), which include 96 large-scale supply projects in the field of defense in the USA.
 
3
Assets are specific when they are difficult to redeploy toward other users or customers without incurring costs.
 
4
The opposition between “good” and “bad” motives for renegotiations can be linked to the conceptualization matrix of PPP renengotiation causes made by ITF (2017). In this approach, the endogenous and exogenous factors of renegotiations (as seen in relation to the specific PPP project under consideration) are crossed with objective and subjective (or alternativeley more technocractic/more political) factors.
 
5
Survey conducted by the UGAP and the magazine Décision Achat in 2011, to which 370 officers in charge of the procurement services of various public authorities responded.
 
6
See Chapter “The Relative Efficiency of Competitive Tendering” of the second part for award procedures.
 
7
The operator had signed a loan agreement requiring that a debt/net worth ratio be reached. Now, this ratio could only be reached through a price increase or a reduction in the investments provided for in the contract, which seems to imply an anticipation of renegotiation on the part of the private partner.
 
8
See Sect. 3.2 of this chapter.
 
9
For a distinction between price-cap and cost-plus, see Chapter “Regulatory Instruments for Public-Private Partnerships” of the first part on PPP regulation.
 
10
The authors use the following measure of contract rigidity: they introduce rigidity categories (certification, evaluation, litigation, penalties, contingencies, design and termination) and proceed to a machine-reading of these dimensions in contracts. These categories capture relevant contractual clauses that lower the likelihood of being challenged by opportunistic third parties.
 
11
This result was confirmed by a later study of Guasch et al. (2008).
 
12
See the report for the European Parliament regarding the project of directive on Concessions by Stéphane Saussier (2012), advocating greater transparency in the performance phase of PPPs. This directive was passed in early 2014, without this proposal being accepted.
 
13
OECD (2008), “Government at a Glance” (p. 153).
 
14
In the sector under study, the high level of competition makes it possible to consider renewal as an indicator of good contract performance. As an illustration, the renewal rate in this sector is close to 50%, against rates higher than 90% in the water and transport sectors, which are known to be less competitive.
 
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Metadaten
Titel
Renegotiating PPP Contracts: Opportunities and Pitfalls
verfasst von
Jean Beuve
Aude Le Lannier
Zoé Le Squeren
Copyright-Jahr
2018
DOI
https://doi.org/10.1007/978-3-319-68050-7_6