www.pppinindia.gov.inPPP TOOLKIT
PPP TOOLKIT for Improving PPP
Decision-Making Processes

Sector: State Highway  |  Module 2: Work through the PPP process

Phase 4 - Contract management and monitoring

The goal of Phase 4 is to ensure the PPP project is implemented and carried out according to the terms of the Concession Agreement. Phase 4 continues until the end of the PPP's life.

The PPP process

Phase 4 begins once the project reaches technical closure with the signing of the Concession Agreement. The life of the PPP during Phase 4 involves:

  • Implementation and operation of the project by the concessionaire and
  • Performance monitoring and contract enforcement by the Sponsor.

When the contract is signed the Sponsor goes from preparing the PPP to managing its implementation and ongoing operation according to the terms set out in the Concession Agreement. The Sponsor remains engaged with the PPP in this new role until the end of the contract’s life.

Contract management and monitoring is an especially important part of a PPP. The effective and efficient implementation of the PPP requires a significant level of proactive management with clear terms between the public sector Sponsor and the private operator (the concessionaire). The deliverables expected from the PPP are largely dependent on the smooth and trouble-free relationship between the Sponsor and the concessionaire.

The responsibilities and obligations for contract management will be specified in advance in the Concession Agreement. This means the foundations for contract management and monitoring are laid earlier in the PPP process, in particular in Phase 2 and Phase 3 when the key documents are drafted and finalised.

Responsibility for Phase 4 will typically be with a Contract Management Team within the Sponsor. Specific arrangements and processes are needed to carry out contract management and monitoring. Ideally, these institutional set-ups should also be in place before the PPP contract begins. This is more likely to be so where there is an existing PPP programme, since different PPPs can be managed using the same arrangements.

Phase 4 of the toolkit is structured as follows:


  Next Page: Tools for Phase 4