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The structural observation in CADA Section 2 that contractual instruments — however well-drafted — cannot satisfy the four architectural requirements alone. Contracts operate within commercial law; they allocate defined risks and specify remedies but cannot alter the underlying economic interests of contracting parties. A commercial lender holding senior debt has an interest in debt service that no contract can extinguish. The four requirements therefore require a different class of capital, not a better class of contract.
PPPs have been refined for decades with better contracts, stronger governance frameworks, and more sophisticated risk allocation matrices — yet the structural failures persist. The paper's contribution is to show why: contracts cannot change the fact that the loss must be borne somewhere, or alter the incentive of commercial capital to avoid bearing it.
CADA Section 2