Renegotiating public-private partnerships

نویسندگان

چکیده

Public-Private Partnerships (PPPs) are frequently renegotiated as their contracts long-term, often with a duration exceeding 30 years, involve major investments, and necessary incomplete. Still, while contract incompleteness is difficult to prevent, renegotiation frequency does not decline in spite of decades experience. Electoral cycles political connections lead strategic behaviour by both the public sector, intending please electorate, private entity, taking advantage fact that government cannot afford disruption services prior elections. The bargaining power held mainly firms/corporate consortiums who extract additional rents compensate for underbidding at initial bidding rounds. When consortium dominated foreign firm, negotiations higher but extraction from renegotiations lower, reflecting lower degree connectedness. Experience PPP projects reduce likelihood subsequent renegotiations. In recommendations supervisor (the Court Audit), sector has implemented improvements design clauses contracts.

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ژورنال

عنوان ژورنال: Journal of Multinational Financial Management

سال: 2021

ISSN: ['1042-444X', '1873-1309']

DOI: https://doi.org/10.1016/j.mulfin.2020.100661