Addressing the Impacts of the Covid-19 Pandemic on Public-Private Partnership (PPP) Contracts

Abstract

The Covid-19 pandemic has significantly impacted the health and
economy of the world. The pandemic has also frustrated the
execution of public-private partnership (PPP) projects across the
world, with economic and legal consequences for contracting
parties. The impacts of the pandemic have, and may continue to,
result in uncertainties and even project failures. PPPs are
underpinned by long term contracts which should ordinarily
determine the rights, obligations and remedies arising out of the
impact of the pandemic. However, the legal outcomes are never
always certain or determinable and might not augur well for any
of the parties.
This article examines legal and contractual tools for managing
uncertainties and risks arising from the pandemic. It suggests
that, as much as possible, parties should rely on extra-contractual
arrangements to resolve the issues that are likely to arise out of
the pandemic. This article discusses the possible legal outcomes
of the pandemic on PPP arrangements and suggests creative ways
of mitigating its impacts.