Development of Policy, Legal, and Insitutional Framework for - ppiaf

Development of Policy, Legal, & Institutional Framework for the PPP Program in Malawi
Final Report
In some circumstances, the Authority may wish to take action in order to prevent or to
mitigate the damages that would be caused by an interruption of service during
disputes. Such a right is normally referred to as a step-in right and it involves the
Authority taking over all or part of the Contractor’s service delivery functions.
Authority step-in on breach by the Contractor will generally occur through the contract
monitoring arrangements. The Authority should continue to pay the Unitary Charge for
service delivery that continues to be conducted by the Contractor, i.e. the areas in which
there has been no breach of the contract. Such payments will be offset by the costs that
the Authority incurs in providing service in areas into which it had to step in. The stepin
provisions should not interfere with the contract’s early termination provisions.
In the section below is the Model Concession Contract developed by the United Nations
Committee on International Trade Law (UNCITRAL).
THE INSTITUTE FOR PUBLIC-PRIVATE PARTNERSHIPS 216