Public Private Partnerships and the Principle of Risk Allocation: The Provision of Infrastructure in ASEAN

2018 ◽  
Vol 48 (1) ◽  
pp. 103-115
Author(s):  
Yasushi SUNOUCHI
Keyword(s):  
Public Private Partnerships ◽  
Risk Allocation

Evaluating the Effectiveness of Public–Private Partnerships in Highway Development: The Case of Virginia

2018 ◽  
Vol 2672 (4) ◽  
pp. 43-53 ◽  
Author(s):  
Yin Wang ◽  
Zhirong Jerry Zhao
Keyword(s):  
Risk Reduction ◽  
Partner Selection ◽  
Public Private Partnerships ◽  
Risk Allocation ◽  
Cost Overrun ◽  
Efficiency Gains ◽  
Highway Projects ◽  
Public Benefits ◽  
Financial Arrangements

Given the current momentum for public–private partnerships (PPPs), it is critical to review the experiences of PPP highway projects to see whether they succeed in serving public benefits. This article applies a goal-centered approach to evaluate the effectiveness of nine PPP highway projects in the Commonwealth of Virginia, U.S.A., that were implemented and opened to traffic between 1990 and 2016. Virginia has used highway PPPs more for financing or risk reduction than for efficiency gains. The authors examine four elements of contract agreements—PPP type, private partner selection, financial arrangements, and risk allocation—in these Virginian projects, and find that these arrangements have been effective in accessing innovative finance and preventing cost overrun, while the evidence is limited regarding shifting revenue risk or achieving efficiency gains.

Revenue guarantee in public-private partnerships: a fair risk allocation model

2014 ◽  
Vol 32 (4) ◽  
pp. 403-415 ◽  
Author(s):  
Nunzia Carbonara ◽  
Nicola Costantino ◽  
Roberta Pellegrino
Keyword(s):  
Public Private Partnerships ◽  
Risk Allocation ◽  
Allocation Model

Public–private partnerships: implications from policy changes for practice in managing risks

2020 ◽  
Vol 27 (9) ◽  
pp. 2253-2269
Author(s):  
Jin Wu ◽  
Henry J. Liu ◽  
Michael C.P. Sing ◽  
Richard Humphrey ◽  
Jianfeng Zhao
Keyword(s):  
Public Private Partnerships ◽  
Project Delivery ◽  
Limited Attention ◽  
Risk Allocation ◽  
Infrastructure Development ◽  
Policy Changes ◽  
Contract Breach ◽  
Content Type ◽  
Negative Impacts

PurposeThis paper investigates the policy changes made towards infrastructure public–private partnerships (PPPs). The purpose of this study is to empirically identify the policy risks associated with the development of PPPs and to assess their impacts on the projects.Design/methodology/approachA case study of the policy changes that have been implemented for PPPs in China over the past seven years has been undertaken and is presented in this study. The causal loop diagrams are applied to assess and illustrate the potential impacts of the risks as a result of such changes on PPPs.FindingsA sequence of the policy risks, which relate to PPP risk allocation, contract management and implementation, payment and abatement mechanisms and financing, has been identified. It is also found that the identified risks will generate significant but negative impacts on PPPs, leading to an ineffective project delivery, low revenue, poor service quality and even contract breach.Practical implicationsThis research provides the private-sector entities that will embark on PPPs with an insight into managing and controlling policy risks over the project's lifecycle.Originality/valuePPPs have been critical for infrastructure development worldwide. Nevertheless, they have been a controversy, as many of them were subjected to poor outputs. Consequently, a variety of political mechanisms has been implemented to enhance the governance for PPPs. Policy can bring not only benefits but also risks and, however, policy risks of PPPs with a particular assessment for their potential impacts have received limited attention. Therefore, the study presented in this paper will contribute to the identification and assessment of policy risks within the context of PPPs.

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