March 2022

Public Interest and Early Termination of PPP Contracts: Can Fair and Reasonable Compensations be Determined?

Eoin Reeves (ed), University of Limerick, Ireland

Study by Rui Cunha Marques.

This paper examines the issue of early termination of PPP contracts.  It focuses on contracts that are terminated in the ‘public interest’ and investigates how fair and reasonable compensation mechanisms can be implemented.  The author argues that the option of using the private sector for the provision of public services is justifiable for reasons such as value for money.  However, excessive profits should not be acceptable when the private sector provides essential services (services of general interest) such as urban water or sewerage services.  These services are not the same as other businesses and require demanding governance.

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