New OECD working paper on Public Private Partnerships for Transport Infrastructure
New OECD working paper on Public-Private Partnerships for Transport Infrastructure
Long-time Public-Private Platform Associate, Björn Hasselgren, has co-written an OECD working paper on Public Private Partnerships for Transport Infrastructure: Renegotiations, How to Approach them and
Economic Outcomes. The report is specified Discussion Paper Np. 2014-25 and based on Roundtable Summary and Conclusions.
The report is written by Björn Hasselgren, Dejan Makovsek and Stephen Perkins and amongst others it argues:
Although contracts can never be complete, they can be very nearly complete. Foreseeable risks can be allocated between the parties. Clauses in the contract can provide procedures for dealing with unforeseen circumstances – with a test to verify that the existing allocation of risks does not already address the situation. When renegotiation is triggered under such arrangements, an independent jury might be used to check that the outcome is what the parties might have been expected to negotiate if they had foreseen the change. Of course populating such a jury is not without controversy and its judgements may be questioned (and subject to review in court). Establishing such procedures, however, increases transparency.
You can download and read the entire report here: oecd_public_private_partnerships_for_transport_infrastructure.pdf