| dc.description.abstract | The period of private participation in infrastructure projects could be as long as 50 years. During the contract period, how to adjust the rights and obligations of both parties suitably to match the purposes of the projects and public interest, and take into account the appropriate profits of private partners, are the critical issues for the concession agreement. Article 59 of The Guidelines for Promotion of Private Participation in Public Construction stipulates: ＂Amendment to the agreement should be based on public interests and a fair and reasonable basis.＂ However, lacking of relevant detailed regulations has caused difficulties in practical implementation. This study explores the principles, limitations, and procedures of PPP agreements by using research methods such as examining the norms and disputed cases in Taiwan, referring to foreign PPP regulations, and interviewing practical experts. Finally, suggestions for amendments to PPP norms and concession agreements are proposed to help resolve these practice controversies.
This study finds that currently, courts have not yet reached a consensus on the issue of amendment to PPP agreements, but they tend to think that only when events of ＂force majeure or exceptions＂ occur and are necessary, may change the items of agreements, including ＂contract period”, “scope of work”, “royalties” and so on. This point is similar to the conclusions of expert interviews; however, most experts believe that ＂force majeure or exceptions＂ is only one of the reasons for agreement amendment, the dramatic changes in demand and cost are other reasonable reasons to the change contract. In international law, norms such as UN PPP Guidelines emphasize that the agreements should specify the scope, procedures, and measurement standards of the amendment clearly.
In conclusion, this study proposes three-stage amendments for “Enforcement Rules of Act for Promotion of Private Participation in Infrastructure Projects”, “The Guidelines for Promotion of Private Participation in Public Construction”, and “Reference Provisions of the Concession Agreement”. It is hoped that by specifying the conditions for agreement amendment, stable PPP agreements may also remain reasonable flexibility to cope with changes in the external environment. Lastly, the results of this study can be used as the basis for future research on various types of PPP project agreements.
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