LAUSR

Abstract Along with an increase in the use of PPPs for the management and development of transport projects, considerable evidence exists regarding the difficulties encountered in creating robust contracts. It becomes necessary to adapt contracts to new circumstances, through renegotiation. The aim of this paper is to characterise this renegotiation and to improve the knowledge regarding what are the main drivers for renegotiation, and what are their main determinants and consequences. This paper focusses on the analysis and discussion of renegotiation in transport PPP projects, using a sample of seven projects in Brazil, during the period of 2006–2016, for a total of 20 renegotiations. The results exhibit a high frequency of renegotiation, and evidence of political influence on the likelihood of renegotiation, particularly when elections occur and/or there is a change in government. Institutional and regulatory framework play a key role in decreasing the likelihood (and consequences) of renegotiation.