Article by Jonathan L. Gifford, Lisardo A. Bolaños, Nobuhiko Daito & Carter B. Casady.
The frequency of renegotiations in PPPs, especially in Latin America and Europe, has attracted attention from policymakers, scholars, and the public alike. Renegotiations broadly refer to any ex-post modifications in the PPP contract, and the outcomes of these renegotiations may include contract termination/nationalization, refinancing, and restructurings from bankruptcy. Studies show that slightly over half of transportation PPPs in Latin America and Europe undergo renegotiations, often creating multimillion-dollar contingent liabilities on government balance sheets.
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