Dispute Resolution and Litigation in PPP Road Projects: Evidence from Select Cases

Abstract

Public–private partnership (PPP) projects came to prominence with the launch of the National Highway Development Project in India in 1998. Since then, the PPP procurement approach to service delivery has permeated the transportation sector and its subsectors of highways, ports, airports, and railways. Many of these projects have suffered cost and time delays due to disputes over land acquisition, grants for environmental and forest clearance, and other approval. Concession agreements (CAs) in the road-building sector provide for dispute resolution clauses, although not in detail; however, it has been observed that dispute resolution is not normally achieved unless all the stages of litigation have been exhausted. CAs are still evolving, and no PPP-specific legislation yet exists in India, unlike in the UK and Hong Kong, where individual legislations are enacted for each project. Suitable changes in the land acquisition process and legislation and provision for strict, time-bound implementations and fair and reasonable compensation can aid in reducing the number of litigation cases. Incentives and penalties are required to ensure strict compliance with contract provisions.