Introduction

Latin American infrastructure concession contracts in the 1990s have been plagued by numerous renegotiations, to the point that prior private investors are questioning any future involvement in infrastructure in some countries in that region. This issue has been analyzed in a series of papers by Guasch et al. (2003, 2006a, 2006b). After putting these contributions in the context of the theoretical and empirical literature on contract renegotiation, this note surveys the existing evidence on the determinants of these renegotiations and discusses the main policy implications ...