Module 7 - Contract agreement, contract management and dispute resolution

Several parties are involved in the implementation of a PPP project. They include government, project sponsor(s), banks and other financial institutions, experts, suppliers, off-taker(s) and third parties. As already discussed in Module 2, a special project company called SPV may also be established for the purposes of project implementation and its operation.

The details of implementation and payment arrangements are negotiated between the parties involved and are documented in a number of written agreements signed by them. If an SPV is established, it is at the centre of most of such agreements. In other words, the SPV negotiates the contract agreements with most of the parties involved in the process. If establishment of an SPV is not required, the concessionaire (or the private project company which sponsors the project) is at the centre of such agreements and negotiates the contract agreements with the other parties including the government involved in the process.

Considering the scope of the present document, discussion presented here is limited to the contract agreement between the SPV or the concessionaire and the government

IDevice Icon Objectives of Module 7

On completion of this module you should have a basic understanding of issues in:

  • contract agreements;
  • contract management; and
  • dispute resolution.

Copyright © 2008 by Transport Policy and Development Section, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).