PT  - JOURNAL ARTICLE
AU  - James Leigland
TI  - Managing the Threat of MAGA in Emerging PPP Markets
AID  - 10.3905/jsf.2003.320293
DP  - 2003 Jan 31
TA  - The Journal of Structured Finance
PG  - 49--54
VI  - 8
IP  - 4
4099  - https://pm-research.com/content/8/4/49.short
4100  - https://pm-research.com/content/8/4/49.full
AB  - Internationally, project finance professionals have come to understand the significance of “material adverse government action,” or MAGA, as a category of risk that must be carefully managed in public-private partnership (PPP) contracts. However, many government officials in emerging economies do not understand the concept and sometimes reserve the right (in laws or regulations) to interfere in the workings of PPP contracts should the need arise. This article refers to this refusal to rule out governmental interference as the “threat of MAGA,” and explores the reasons for it, its damaging impacts on nascent PPP markets in emerging economies, along with possible remedies. South Africa is used as a case study.