Renegotiation of transportation public-private partnerships: The US experience

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in THE INTERNATIONAL TRANSPORT FORUMThe International Transport Forum at the OECD is an intergovernmental organisation with 54 member countries. It acts as a strategic think-tank, with the objective of helping shape the transport policy agenda on a global level and ensuring that it contributes to economic growth, environmental protection, social inclusion and the preservation of human life and well-being. The International Transport Forum organises an annual summit of Ministers along with leading representatives from industry, civil society and academia. Discussion PapersThe International Transport Forum's Discussion Paper Series makes economic research, commissioned or carried out at its Research Centre, available to researchers and practitioners. The aim is to contribute to the understanding of the transport sector and to provide inputs to transport policy design.ITF Discussion Papers should not be reported as representing the official views of the ITF or of its member countries. The opinions expressed and arguments employed are those of the authors.Discussion Papers describe preliminary results or research in progress by the author(s) and are published to stimulate discussion on a broad range of issues on which the ITF works. AbstractPublic-private partnerships (P3s) typically rely on long-term contracts between participants. When conditions arise that fall outside the expectations embodied in the contract, one party may seek to renegotiate the contract terms. Globally, the frequency of P3 contract renegotiations has been sufficient to raise questions regarding why these events occur and what their consequences are for the projects and society. The literature highlights four relevant causes behind renegotiation occurrences: unexpected exogenous changes, the complexity of the contractual relationship, winner´s curse and rent seeking behavior. This study examines the US experience with highway P3 renegotiations, including four types of event: contract modifications, defaults, bankruptcies and buyouts. While the US highway P3 market has grown gradually, failure to understand renegotiations and their potential consequences may dampen the market and adversely affect national infrastructure investment efforts. The analysis finds that insufficient evidence exists to disentangle the drivers of renegotiation in the US, although exogenous changes and contractual relationship complexity appear to be paramount. The analysis highlights th...

When and How to Use Public-Private Partnerships in Infrastructure: Lessons From the International Experience

“…On-time delivery also requires better planning, project design, and execution, all of which may lead to reduced cost overruns. 24 Even under PPPs, the government is responsible for planning what to build (network planning and coordination), whether a particular project should be built (cost-bene t appraisal), and when it should be built. In addition, there are arguments for and against delegating project design to the concessionaire.…”

Deciding on Financial Renegotiation in Public-Private Partnership Projects

“…The empirical evidence on PPP renegotiations at an international level is diverse. Gifford et al (2014) argue that United States (US) PPP renegotiations have not experienced the same level of analysis as those in international markets, which might be explained by the relatively few US PPPs and scarce data availability. Infrastructure-oriented PPPs in the US constitute a relatively new market that is still growing.…”

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“…Например, в США банкротство операторов нельзя назвать необычным явлением. Примечательно, что институциональная структура США помогает защитить государственный сектор от частного оппортунизма, гарантируя предоставление услуг, даже если частный субъект объявит себя банкротом [3]. В этой стране система банкротства в первую очередь служит для защиты должников, ее цельпомочь компаниям пережить кризис ликвидности.…”