A PPP renegotiation framework: A road concession in Greece

Purpose: The purpose of this paper is to present a framework approach to guide the identification of potential public private partnership (PPP) renegotiation outcomes is presented. The framework is applied to a road concession project under renegotiation in Greece. Design/methodology/approach: The framework combines the estimation of stakeholder payoffs with respect to the various strategic options available. Their potential acceptance is evaluated with respect to the power distribution within the stakeholder network. The contextual environment determines the respective power position of each stakeholder in the network. Findings: The proposed framework is applied to a road concession case in Greece, under renegotiation as a result of the economic crisis. The analysis highlights the importance of the contextual environment and the limitations of solutions that seem "satisfying" for all stakeholders involved. Social implications: The framework is designed to guide both public and private parties involved in the renegotiation processes in identifying potential solutions or the inability to reach outcomes under specific contextual environments. Assessments are made based on expert knowledge rather than data collection, which is impossible during the renegotiation phase. The application proposed process limit renegotiation transaction costs. Originality/value: The renegotiation framework based on stakeholder payoffs and power theory, is an approach especially useful for complex contract renegotiations, where multiple stakeholders influence the final outcome. The importance of the contextual environment is highlighted. In addition, the paper contributes to the empirical renegotiation literature.