This article provides an overview of contingent liability in the context of Public Private Partnership projects. It is important for the government agencies to engage in a meaningful discussion with their private sector counterparts to recognize the guarantees provided in the PPP contract and the appropriate price for such guarantees. This should lead to a more transparent procurement process where the public is well aware of the guarantees made by government agencies, the level of exposure and any compensation for the liability protection that the government is providing the private sector.
Prediction is difficult, especially about the future!