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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 mananging technological change in existing PPP Projects:
Contractual obligations to adjust the project to a changing technological environment
PPP contractual provisions that permit regular adjustments
PPP contractual provisions and legal mechanisms that permit adjustments in exceptional situations
Renegotiation, government step-in rights, termination, and dispute resolution
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.
