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Managing Technological Change

 

This section discusses how existing PPP projects can manage technological change that may occur during the project implementation phase.1

This includes the management of changes that are permitted in the PPP contract or by the law that governs the contract, such as output specifications; periodic changes in the scope of work or tariffs; and unforeseen changes caused by external events or changes in law. Against the background of the transformative nature of some technological changes that are underway and have the potential to reshape entire infrastructure sectors, it is natural to expect that the parties will at some point during the contract term face circumstances that cannot be dealt with by the adjustment mechanisms provided for in the PPP contract. These changes in circumstance may need to be addressed through renegotiation frameworks as well as the dispute resolution processes and termination regimes set out in the respective PPP contracts or legal systems governing the contract.

 

See the sections below for managing technological change in existing PPP Projects: 

Footnote 1:  The administrative arrangements and processes for handling change are often further defined as part of the contract management framework and materials. Although rules and processes for change are usually specified in the PPP contract, room for discretion is likely to remain.

Subsections

Changing Technological Environment Defining PPP output specifications that account for technological changes is difficult due to the rapid changes in… more
Regular Adjustments Due to the long-term nature of a PPP project, most PPP contracts contain provisions by which the contracting authority… more
Adjustments in Exceptional Situations Where changed circumstances upset the balance of contractual obligations, legal doctrines that are applicable in a… more
Renegotiation, Government Step-in rights,… Interpretations of PPP contractual provisions, adjustments of contractual obligations, or requests to renegotiate or… more
Process for Assessing and Resolving Issues… Process for Assessing and Resolving Issues related to Disruptive Technology.
Note/s:

The resources on this site is usually managed by third party websites. The World Bank does not take responsibility for the accuracy, completeness, or quality of the information provided, or for any broken links or moved resources. Any changes in the underlying website or link may result in changes to the analysis and recommendations set forth in the Public-Private Partnership Resource Center. The inclusion of documents on this website should not be construed as either a commitment to provide financing or an endorsement by the World Bank of the quality of the document or project. If you have any comments on any of the links provided in the Public-Private Partnership Resource Center, please get in touch here