The valuation of risk transfer in UK school public private partnership contracts

The aim of this paper is to analyse the risk transfer issue in Public Private Partnership/Private Finance Initiative (PPP/PFI) procurement documents in the United Kingdom (UK) and Malaysia. It utilises qualitative research methods using documentation and interviews for data collection. The UK documents (guidelines and contracts) identify the risks related to this form of public procurement of services and makeexplicittheappropriateallocation of those risks between the public and the private sector PPP/PFI partners and so the types of risks each party should bear. However, in Malaysia, such allocation of risks was not mentioned in PPP/PFI guidelines. Hence, a question arises regarding whether risk transfer exists in Malaysian PPP/PFI projects, whether in contracts or by other means. This research question is the rationale for the comparative analysis ofdocumentsand practicesrelatingtorisk transfer in the PPP/PFI procurements in both countries. The results clarify risk-related issues that arise in implementing PPP/PFI procurement in Malaysia, in particular how risk is conceptualised, recognised and allocated (whether explicitly or implicitly), whether or not that allocation is intended to achieve optimum risk transfer, and so the implications forachievement ofvalue for moneyor other such objectivesinPPP/PFI.

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Risk Perception Gaps Between Construction Investors and Financial Investors of International Public–Private Partnership (PPP) Projects

Sustainability ◽

10.3390/su12219003 ◽

2020 ◽

Vol 12 (21) ◽

pp. 9003

Author(s):

Chan Young Park ◽

Wooyong Jung ◽

Seung H. Han

Keyword(s):

Risk Perception ◽

Financial Risk ◽

Exposure Period ◽

Public Private Partnership ◽

Private Partnership ◽

The Sustainable Development ◽

Risk Transfer ◽

Construction Risk ◽

Development Phases ◽

Selection Phase

Many international public–private partnership projects have suffered from frequent project pending status or failure because of dissimilar interests among stakeholders over projects’ long development period. Thus, this study compares the perception gaps of 27 risks between Korean construction investors and Korean financial investors depending on different development phases of international public–private partnership projects. In the project selection phase, construction investors and financial investors show few risk perception gaps. However, in the bid and proposal phase, they perceive many risks differently: construction investors tend to perceive the construction risk and financial risk as more important, whereas financial investors perceive stakeholder risk and country risk as more significant. This study also discusses the causes of risk perception gaps from three perspectives: (1) time-dependent risk; (2) risk exposure period; (3) risk transfer and responsibility. These findings will be helpful in recognizing the dynamic risk perception gaps between two leading investors for the sustainable development and investment of international PPP projects.

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A Life-Cycle Framework for Managing Risks in Public Private Partnership Housing Projects

Journal of Engineering Project and Production Management ◽

10.2478/jeppm-2020-0004 ◽

2020 ◽

Vol 10 (1) ◽

pp. 27-34

Author(s):

Yakubu N. Sanda ◽

Natalia A. Anigbogu ◽

Lura Y. Nuhu ◽

Ola S. Olumide

Keyword(s):

Life Cycle ◽

Sampling Technique ◽

Public Private Partnership ◽

Risk Allocation ◽

Private Partnership ◽

Housing Projects ◽

Risk Transfer ◽

Purposeful Sampling ◽

Number Of Parties ◽

Structured Questionnaire

AbstractPublic private partnership projects have been adjudged to contain more risks than traditionally procured projects due to more number of parties involved and their varying interests. These risks affect the achievement of projects objectives and therefore need to be identified and treated to guarantee project success. This paper developed a life cycle framework for managing risks in PPP housing projects in Nigeria. The respondents were selected using purposeful sampling technique. The data used for the study were obtained through semi-structured questionnaire and were analysed using mean rating. Risk transfer was found to be the widely used measure for responding to risks in PPP housing projects. The criteria mostly used for risk allocation were party with the best ability to manage specific risks should they occur and ability of the party to foresee risks. A four-stage life cycle framework was developed, evaluated and validated by experts in the built environment to ascertain its reliability. The framework is recommended for PPP housing projects in Nigeria.

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