A Governance Approach for Managing Public–Private Partnership Renegotiation
This brief discusses why governments should consider ways to regulate the renegotiation of public–private partnership (PPPs) contracts to ensure that the process is efficient, flexible, and transparent.
As developing countries increasingly turn to PPPs to finance infrastructure projects, the brief explains how these can quickly be derailed by economic turmoil or global crises. With an average of one in three PPP deals being renegotiated, it advises governments “invest in investment” to strengthen governance, standardize contracts, and improve institutional capacity. Highlighting how multilateral development banks can assist, the brief also explains why taking a proactive stance helps ensure projects offer value for money and prevent nascent challenges escalating into crises.