Restoring Confidence in Public–Private Partnerships: Reforming Risk Allocation and Creating More Collaborative PPPs
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This brief discusses the potential to improve contractual arrangements for public–private partnerships (PPPs) and suggests reforms to address issues on allocating risks and resolving disputes.
A global decline in PPP transactions has been observed in recent years despite the critical need for investments in various sectors, particularly in infrastructure development. Among reasons identified for the loss of confidence in PPPs are approaches taken in PPP contracts to risk allocation and dispute resolution. This brief recommends incremental reforms to current PPP contracting practices, incorporating various alternative arrangements and taking into account the associated governance challenges.