Risk Allocation & Management

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A clear and stable legal environment is essential for the success of Public-Private Partnership (PPP) projects. It reduces the perception of risk, attracts greater competition, enables broader access to financing, and ultimately helps lower project costs. The legal framework provides the foundation for the institutional, regulatory, commercial, and financial environment in which PPPs operate, ensuring clarity, consistency, transparency, and certainty for all stakeholders.

A successful PPP project depends on workable, commercially viable, and cost-effective risk-sharing arrangements. Given the differing interests and objectives of the parties involved, effective risk allocation is not only a central element in drafting project documents, but also a critical factor in the overall success of the project.

In this section of the PPPRC, you will find practical resources to support effective risk allocation. These include risk matrices, risk allocation tool, the World Bank Group’s guarantee products, and insurance checklists. Together, these tools help ensure that risk is appropriately shared and managed, leading to more successful, sustainable, and profitable projects that benefit all parties involved.

Subsections

Checklists and Risk Matrices
This section provides the PPP sector specific checklists and the checklists of key legal/drafting issues in PPPs and… more
World Bank Group Guarantees platform (Main…
Leveraging the World Bank Group’s collective expertise over 80 years of engagement with governments, the guarantee… more
Insurance Checklist Availability of insurance, levels of cover and deductibles will have an impact on the risks being taken by the… more
PPP Risk Allocation Tool (2019)
The PPP Risk Allocation Tool 2019 Edition is the second edition of the guidance tool, with the first edition focused… more
Guidance on PPP Contractual Provisions (2019)
This current edition of the Guidance on PPP Contractual Provisions, 2019 Edition (“Guidance”) is largely based upon… more
Risk Mitigation Mechanisms (including guarantees… This section looks at the different mechanisms products that are available in the market for project sponsors, lenders… more