Termination of PPP Contract for Public Interest: Review and Impact

Public interest is a broad and often subjective concept, open to varying interpretations depending on the context and the perspective of the beneficiary party. In PPP procurement tenders and contracts, it is not uncommon to encounter clauses granting the public party the right to terminate a contract early on the grounds of public interest, whenever deemed justified. While this provision aims to safeguard public welfare, it introduces significant risks to PPP projects, including financial losses and potential reputational damage for private sector participants. Such provisions are typically non-negotiable, leaving private entities with little room to maneuver.

This webinar will delve into the complexities of early termination rights in PPP contracts, focusing on the interpretation and application of this power. It will explore the associated risks, including their financial and reputational implications, and discuss strategies the private sector can employ to mitigate these challenges.