The fourth generation of road concessions in Colombia and the new ppp legal model: What have we learnt from over-renegotiation and over-litigation trends?

This document analyzes and assesses the new PPP legal model adopted in Colombia in 2012 using the framework of the governmental program Fourth Generation of Road Concessions (4G). The principal objective is to establish whether the new model responds to or reflects the principal criticisms, problems, risks and recommendations collected throughout 20 years of concession experiences and disclosed in economic studies. Such concerns are mainly dominated by costly and increasing renegotiations, delays in the provision of roads, high rates of litigation and a cumulative gap in transport infrastructures. This paper uses economic theories such as the principal-agent problem and game theory to expose the solutions to previous mistakes presented in the new PPP model and reveal the potential risks that remain for the model in relation to implementation that could lead to the failure of the 4G Program. Overall, it aims to provide recommendations for the minimization of misleading information and the breaking down of a transcendental central government program of public works provision for the competitiveness of Colombia. [ABSTRACT FROM AUTHOR]