Insight for Developments

Brickstone_Renegotiation of PPPs

Download Whitepaper : Renegotiation and Early-Termination In Public-Private Partnerships (PPPs) Key Commercial Considerations

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Renegotiation and Early-Termination is an important consideration in Private-Public Partnerships. In commercial terrain, one of the easiest ways to achieve a business or infrastructure goal is to enter into a partnership with other people. This partnership has always worked out to achieve a common good, especially when one party leverages on the competitive advantages of the other to achieve the partnership goal.

As business strategies, there are many types of partnership used to achieve a common goal, but a popular one is the Public-Private Partnership. This partnership leverages the financial strength of the private sector to achieve public development for a country or an institution.

However, this Public-Private Partnership is subjected to renegotiations and early termination owing to divergent reasons and consistent commercial changes. It is this partnership and interfering factors that this article considers.

This article first considers the Public-Private Partnership as a commercial strategy. It further considers renegotiation and early termination as interfering factors, the reasons and implications of renegotiations and early terminations of the Public-Private Partnership agreement. Finally, it considers the key commercial considerations for the parties and stakeholders.

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