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Negotiated Settlement Of Public Infrastructure Disputes

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Chapter Summary

This chapter offers some practical thoughts on the circumstances that encourage or discourage negotiated settlements of disputes between developing country authorities and foreign investors with respect to public infrastructure projects. It reviews the experience with respect to a large number of independent power projects (IPPs) caught up in the Indonesian political and economic upheavals triggered by the Asian financial crisis. Most importantly, there are times when the gap between the parties is simply too large to bridge by negotiation. There may be no middle ground that will simultaneously preserve the fundamental economic interests of the principal parties to the dispute. That was the case for the Indonesian IPPs and thus the manner in which those problem projects were addressed is useful for understanding the parameters for negotiated resolution of infrastructure disputes.

Keywords: Asian financial crisis; independent power projects (IPPs); Indonesia; public infrastructure disputes



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