Public-Private Partnerships with No Contractual Base Case:

Abstract

The purpose of this article is to discuss a method for compensating a private concession-aire for cash flow losses related to Covid-19 suffered in 2020 and 2021. The analysis is based on a public-private partnership (PPP) set up to exploit surface parking lots, signed between a Portuguese municipality and a private corporation. The contract has no financial base case. The article concludes that a base case is not an obstacle to calculate this type of compensation, that the previous performance of the contractor is a reasonable basis to estimate losses and the forecasts extending to 2026 are a good schema with which to estimate the extension of the concession period claimed by the Petitioner. The arbitration court deciding the corporation's claim has valid reasons for an equitable decision. © 2023, Lexxion Verlagsgesellschaft mbH. All rights reserved.