Title: Allocating Risks in Public-Private Partnerships

Language: English

Type: Document

Nature: Report

Published: June 10, 2016


Region: Global

Country: Global / Non-Specific

Topic: Tools

Keywords: PPP Online Reference Guide **, PPPs by Topic *, Financing and Risk Mitigation **, Risk, Risk allocation

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Document Summary:

The Global Infrastructure Hub (GI Hub), based in Sydney, Australia, is an organisation established by the G20 group of nations to foster innovative approaches to global infrastructure development. One of the GI Hub’s key mandates is to promote ‘leading practices’ for quality infrastructure investments, including the preparation and dissemination of guidance materials in respect of project identification, preparation and procurement.


Document Details:

As part of its ‘leading practices’ mandate, the GI Hub is developing a set of annotated risk allocation matrices for public-private partnership (PPP) transactions, in a variety of sectors. Risk allocation is at the centre of every PPP transaction, and a deep understanding of the risk allocation arrangements is a precondition to the drafting of every PPP agreement. The appropriate application of risk allocation principles is what determines whether a given PPP project will be ‘bankable’ (i.e. financeable), and whether it will be long-lasting (i.e. able to remain viable though to the end of a long-term contract).

The GI Hub has engaged Norton Rose Fulbright, a global law firm, to prepare a report on Allocating Risks in Public-Private Partnership (PPP) Contracts, 2016 Edition (the Report), with matrices showing the allocation of risks as between the public and private sectors in typical PPP transactions, along with related information on mitigative measures and typical Government support arrangements. Separate matrices are developed for 12 designated types of projects within the transport, energy and water and sanitation sectors.

This tool is also available in Spanish (Asignación de riesgo en contratos de Asociación Público-Privada) and Chinese (政府和社会资本 合作合同风险分配).

Related Information:

Checklist and Risk Matrices

Financing

Tracking Reference:

GIHub_Allocating_Risks_PPP_Contracts_EN_2016.pdf

GIH. 2016a. Allocating Risks in Public-Private Partnership Contracts. Sydney: Global Infrastructure Hub. [#3523]


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