Navigating PPP Renegotiations in the Wake of COVID-19: Insights from a Toll Road Program
Publication: Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
Volume 16, Issue 1
Abstract
This study investigates the impact of the COVID-19 pandemic on the public-private partnership (PPP) infrastructure market, focusing on Colombia’s fourth generation roads concession program (4G) and analyzing 29 toll road PPP initiatives. Using content analysis (CA), natural language processing (NLP), and social network analysis (SNA), the study provides empirical evidence on how PPP renegotiations triggered by the pandemic have been conducted and how contracting parties have responded to such renegotiation efforts. Results show that, from a total of 13 renegotiation processes, most projects relied on two joint general agreements focused on addressing temporary suspension of construction works, mandatory preventive isolations (quarantines), and halting toll collection. However, there were important differences in terms of how PPP parties employed multiple contractual mechanisms to counteract COVID-19 effects according to conditions associated with project complexity, project stage, procurement strategy, and procedures triggering renegotiations. Overall, this research offers an understanding of the dynamics associated with COVID-related renegotiations within PPP projects, which can inform contract and renegotiation strategies and improve future infrastructure projects, particularly in the face of unexpected events.
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Data Availability Statement
All data, models, or code generated or used during the study are available from the corresponding author by request.
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Published In
Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
Volume 16 • Issue 1 • February 2024
Copyright
© 2023 American Society of Civil Engineers.
History
Received: May 12, 2023
Accepted: Sep 18, 2023
Published online: Nov 24, 2023
Published in print: Feb 1, 2024
Discussion open until: Apr 24, 2024
ASCE Technical Topics:
- Analysis (by type)
- Business management
- Construction engineering
- Construction management
- Contracts and subcontracts
- Engineering fundamentals
- Epidemic and pandemic
- Highway and road management
- Highway transportation
- Highways and roads
- Infrastructure
- Network analysis
- Practice and Profession
- Project management
- Public administration
- Public health and safety
- Public private partnership
- Tolls
- Transportation engineering
- Transportation management
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