Our client, the Singapore government, signed a PPP agreement with a private party that operates and maintains Sports Hub, the national stadium. The PPP contact has provisions to undertake a periodic review of costs to run the venue.
The PPP contract, like most contracts based on the UK SOPC 4 PPP standard, has provisions for periodic reviews conducted to ensure the private sector is remunerated for the services delivered based on market rates. Negotiations on the increase in price for the next review period between both the government and the private sector are ongoing. If both parties fail to agree on a revised price, the PPP contract triggers yet another provision to undertake a full re-tender process for the venue operator. This would require the redevelopment and repackaging of the services to be delivered including recalibration of the performance matrix.