A guidebook on public-private partnership in infrastructure

Setting the terms of contract and preparing a draft contract/agreement 
The main items that are generally covered in a PPP contract may include the 
following: 
• Definitions and interpretations 
• Tenure of contract, end of term arrangements and access rights to the 
project site 
• Obligations of the parties to the agreement (the private party, the contract 
awarding agency and the government) 

---

62 
A Guidebook on Public-Private Partnership in Infrastructure
 
 
• Project, project site, and ownership of land and other assets 
• Design, construction, commissioning, operation and maintenance of the 
facility 
• Engagement of subcontractors 
• Handover of project facility 
• Performance requirements
• Payment and other financial matters (including tariff, fees and their 
collection and appropriation; price review and adjustments; and penalties 
for failure to meet performance requirements) 
• Tariff, fees, levy and their collection and appropriation 
• Insurance 
• Waste treatment and disposal 
• Independent 
engineer 
• Independent 
auditor 
• Applicable law and dispute resolution 
• Change in law 
• Liability and indemnity 
• Force 
Majeure 
• Termination of contract 
• Events of default and termination 
• Contract compliance and management (including monitoring and review, 
data collection, compilation and reporting) 
• Redressal of public grievances 
• Representations and warranties, disclaimer 
• Substitution 
Agreement 
The body of the contract agreement is generally divided in several sections or 
chapters, each on a specific issue. There may be one or more annexes or schedules 
attached to the main body of the agreement. These annexes or schedules provide 
more details on some specific matters, for example, the technical and performance 
specifications for the project. The common key sections of an agreement and the 
nature of their contents are briefly mentioned next.