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Public-Private Partnerships with No Contractual Base Case:

Adjusting for the Impacts of Covid-19

António Martins


Keywords: public-private partnerships, Covid-19 losses, financial base case, Portugal

The purpose of this article is to discuss a method for compensating a private concessionaire 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.
Keywords: public-private partnerships; Covid-19 losses; financial base case; Portugal

António Martins, University Coimbra and CeBER, School of Economics, Portugal. For correspondence: <>.


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