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US airports negotiate legally binding contracts with airlines and finance large investment projects with revenue bonds. Applying insights from transaction cost economics, we argue that the observed variation in contractual and financing arrangements at US airports corresponds to the parties'...
Persistent link: https://www.econbiz.de/10013150512
We study the effects of granting an exit option that enables the private party to early terminate a PPP project if it turns out to be loss-making. In a continuous time setting with hidden information about stochastic operating profits, we show that a revenue-maximizing government can optimally...
Persistent link: https://www.econbiz.de/10012895272
Since 2013, the Chinese government has attempted to make a transition from user-pay PPP to government-pay PPP systems with the aim of facilitating infrastructure investment and government transformation. Whilst the application of government-pay PPP systems can considerably expand the areas where...
Persistent link: https://www.econbiz.de/10013003604
This paper examines the Risk Management and Contract Design aspects of Public Private Partnerships. Part I begins with …, and some common mistakes. All risk management is manifested in the contract specifications. Part IV therefore focuses on … Getting the Contract Right, from the structure as well as the key aspects of contract formulation. The paper draws on the PPP …
Persistent link: https://www.econbiz.de/10013052823
We present a model of public procurement in which both contractual flexibility and political tolerance for contractual deviations determine renegotiations. In the model, contractual flexibility allows for adaptation without formal renegotiation while political tolerance for deviations decreases...
Persistent link: https://www.econbiz.de/10012482706
Persistent link: https://www.econbiz.de/10011943685
determines whether there is likely to be renegotiations after contract award, which may undermine the significance of the initial … sustainability of the original contract. This Note examines these issues …
Persistent link: https://www.econbiz.de/10012556622
This paper analyses regulation by contract in public-private partnerships (PPPs) for infrastructure services. Although … identifies contract design failures. When considering these limitations, it is useful to distinguish between contracts associated … examination of bidding procedures and contract design yields several implications for policy-makers; in addition, the study …
Persistent link: https://www.econbiz.de/10014040355
Contractual renegotiation is an emerging and significant theme in the context of Public-Private Partnerships (PPPs) due to its high incidence and potential impact on the sustainability of partnership models. This study presents a systematic review using a qualitative meta-synthesis method to...
Persistent link: https://www.econbiz.de/10014360823
risk factors. Using a two-period model, the paper examines the dynamic features of the optimal contract under the PPP. The …
Persistent link: https://www.econbiz.de/10014166013