Process for Assessing and Resolving Issues related to Disruptive Technology.

Interpretations of PPP contractual provisions, adjustments of contractual obligations, or requests to renegotiate or terminate the PPP contract can be amicable or contentious.

Where changed circumstances upset the balance of contractual obligations, legal doctrines that are applicable in a number of jurisdictions may give the parties the right to adjust the PPP contract to the new and unexpected conditions.

Due to the long-term nature of a PPP project, most PPP contracts contain provisions by which the contracting authority or the private partner can from time to time require certain changes to be implemented after contract signature.

Defining PPP output specifications that account for technological changes is difficult due to the rapid changes in technology and society.

Long-term, complex PPP projects always have to deal with unpredicted changes and PPP contracts need flexibility that allows unexpected circumstances to be accommodated within the contract, thus reducing the chance of disputes, lengthy renegotiations, and early termination. 

Procurement of infrastructure PPPs typically provides limited flexibility to modify the project if the external conditions change after delivery. In order to achieve more flexibility, a view across the entire life cycle of the project is helpful for the procurement of PPP projects.

Both governments and investors must consider longer-term planning in the project identification, screening and appraisal process, to ensure the sustainability of projects built today that will still be relevant in a world many years in the future.

Enhancing “Innovation Resilience” and the Adoption of Disruptive Technology throughout the PPP Project Cycle

We are living in a world of transformative changes. Technological advances together with the transition to a carbon-free future revolutionize the way we live and interact with the world and could have immense implications for infrastructure PPPs.

The discussion of disruptive technology and its impacts on PPPs needs to be considered in the broader context of disruptions that have increased in recent years—and include unprecedented worldwide challenges such as climate change, natural disasters, economic disasters, and pandemics like the COVID-19 crisis.