ANALYSIS ON THE TERMINATION OF FOREIGN PUBLIC-PRIVATE PARTNERSHIP BY THE GOVERNMENT

Abstract

The implementation of foreign public-private partnerships (PPP) as alternative funding to build an infrastructure of a country has been a common practice. However, upon the termination of the PPP, the government may intend to own and manage the infrastructure fully. This article analyses whether such a situation falls under the legal concept of expropriation or a breach of contract. The article uses the doctrinal research method that combines the statute approaches, conceptual approaches, and case approach. The research concludes that the distinction can be made based on the government's capacity as an authority or a party to the contract.  If the government acts as a public authority, then the termination of PPP is considered as an indirect expropriation; if the government action is based on its commercial capacity or as a party to a contract, then the termination of PPP is considered a breach of contract.