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Risk factors’ importance and allocation in infrastructure Private Public Partnerships

Author

Listed:
  • Sällberg, Henrik

    (Department of Industrial Economics, Blekinge Inst of Technology)

  • Numminen, Emil

    (Department of Industrial Economics, Blekinge Inst of Technology)

Abstract

Private Public Partnership (PPP) has become a major way of providing infrastructure investments. Key issues in the literature on PPP are identification of critical risk factors and their allocation. In this paper we contribute to this literature on these two issues by conducting a systematic literature review study. Data was collected from peer-reviewed journal papers in three major scientific databases from 2000 to 2015. The findings revealed legal changes, operational revenue below expectation, inadequate distribution of responsibilities, and organization and coordination to be the most important risk factors regardless of sector. Risk factors’ importance were found to be contingent on country regulatory quality level, capturing the ability of a government to formulate and implement sound economic policies and regulations. Most risks in PPPs are reported to be shared or borne by the private sector, while fewer risks than preferred are borne by the public sector.

Suggested Citation

  • Sällberg, Henrik & Numminen, Emil, 2017. "Risk factors’ importance and allocation in infrastructure Private Public Partnerships," Working Papers 2017/01, Blekinge Institute of Technology, Department of Industrial Economics.
    • Handle: RePEc:hhs:bthcsi:2017-001
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