#4527. Public interest and early termination of PPP contracts. Can fair and reasonable compensations be determined?

August 2026publication date
Proposal available till 16-05-2025
4 total number of authors per manuscript0 $

The title of the journal is available only for the authors who have already paid for
Journal’s subject area:
Sociology and Political Science;
Development;
Business and International Management;
Management, Monitoring, Policy and Law;
Places in the authors’ list:
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Contract4527.1 Contract4527.2 Contract4527.3 Contract4527.4
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Abstract:
This article analyzes the different ways to terminate public-private-partnership (PPP) contracts early. It discusses how early terminations should be addressed to mitigate the consequences in terms of attractiveness, bankability, unfairness and litigation. The different ways to compensate private partners are examined. A new methodology for calculating the due compensation is proposed whenever governments voluntarily terminate a PPP contract based on the public interest. We posit that early termination clauses of contracts that comprise fair and reasonable compensations are required to provide meaningful incentives and contestability to acceptable returns on essential public services avoiding political and conflicting issues.
Keywords:
Early termination of contracts; Fair and reasonable payment; PPP contracts

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