Public-Private Partnership: Drafting Considerations in PPP Contracts


Public-Private Partnership: Drafting Considerations in PPP Contracts

March 09, 2023

It is no news that the construct and adoption of Public-Private Partnerships (PPP) across governments around the world has been geared towards solving respective infrastructural deficits coming from constantly expanding obligations.

Nigeria is no exception to this, as she has embarked on a number of infrastructure projects using the PPP model.

In its most simplistic form, PPPs are long-term funding arrangements between governments and private sector partners) to provide public goods and services traditionally carried out by governments.

While a government's primary motivation in embarking on a PPP is the provision of public goods and services at the best value, the private party's primary motivation is maximizing profit.

Consequently, PPPs are a constant negotiation playing field, where risk assessment, mitigation and allocation are the parties' contending objectives.

Accordingly, negotiating the terms of a PPP project requires an effective blend of analytical, negotiation and good draftsmanship skills, to provide a working document for an adequate protection of parties' interests, and to achieve a common goal for the public at large.

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