Last Updated:
5 Aug 2020

Best Practices on Contract Design in Public-Private Partnerships

Author: Elisabetta Iossa, Giancarlo Spagnolo, Mercedes Vellez

One of the most important issues in designing a Public-Private Partnership (PPP) contract for infrastructure projects is the allocation of the project’s risks between the public and private parties. As we have discussed in the companion paper, the risk allocation is a means to give appropriate incentives for the private partner to perform according to the contract terms, thus achieving value for money. In what follows, we shall describe best practices in risk allocation, complementing the discussion with some relevant case studies.