How will COVID19 outbreak affect the ongoing public-private partnerships contracts- and how long will PPPs survive
How to protect PPP projects under unknown unknowns events, the difference between uncertainties and risks and what project managers should and should not do to keep the PPP projects up and running under Force Majeure and unforeseeable circumstances
You don’t know what you don’t know. We all know that there is a big difference between risks and uncertainties. The COVID 19 outbreak's impacts might be similar to the past pandemics and epidemics, such as the Spanish flu and the Middle East Respiratory Syndrome (MERS).
According to the Economist's article, Flattening the Curve – How the world can deal with a pandemic, the impacts of past similar events include reduced investment in risky markets, cities with large service sectors becoming vulnerable, and costs of millions of dollars to prevent infections spreading.
The COVID 19 outbreak's economic impacts on the ongoing public-private partnerships (PPP) contracts will be significant on stakeholders, users, the private corporate sector, and the public sector for a long period. This is an unknown unknowns events. PPP projects will face for sure revenue generation challenges, especially revenues generated by user fees. Even PPPs that generate revenue through availability payments might suffer in the long term as governments face contracting economies that result in declining tax revenues and less treasury and budget resources to honor their availability commitment payments. Additionally, the operations and management of PPP projects will be impacted, with special purpose vehicle (PPP project companies) employees being incapacitated, especially when it comes to project operations and maintenance project knowledge.
In this topic, we will discuss the COVID19 outbreak affect the ongoing public-private partnerships contracts and we will discuss the steps that need to be taken to protect the PPP contract in the short and long term.
How to protect PPP projects under unknown unknowns events, the difference between uncertainties and risks and what project managers should and should not do to keep the PPP projects up and running under Force Majeure and unforeseeable circumstances.
Replay Link: https://www.youtube.com/watch?v=WkN0uHIurpA