PPP Contracts and Features
2021
This chapter analyzes the two PPP contracts for infrastructure and service delivery, the user fee-based PPP and availability-based PPP; it also presents and discusses build, lease, and transfer (BLT) contracts as a minor form of PPP. Further it sheds the light on some of the most important elements that need to be considered when structuring PPP contracts, such as: payment mechanisms, contract duration, systems of deductions/penalties to ensure appropriate incentives to SPVs, and how to link payments to inflation. This chapter also discusses the renegotiation of PPP contracts under a legal perspective.
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