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.

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.

Alongside the benefits, the rapid change enabled by disruptive technologies is also bringing new uncertainties. Read below on the key challenges of disruptive technology for PPP infrastructure projects.

Disruptive technologies have the potential to integrate material, machine, and digital technologies across the infrastructure life cycle. Often referred to as InfraTech, they impact the development, delivery and ongoing operation of infrastructure, and create new opportunities for infrastructure service delivery that can benefit users, providers and societies alike.

How are infrastructure PPPs impacted by disruptive technology? The changes prompted by technological innovation will have many positive effects for PPP infrastructure projects and the economy at large but will also present challenges.