Risk Management in Public-Private Partnerships

This insightful book examines the intricacies of Public-Private Partnerships, focusing on risk management and governance to enhance infrastructure development.

Public-Private Partnerships (PPP) serve as a vital avenue for the public sector to access alternative funding and expertise from private entities for the development of public infrastructure. Risk Management in Public-Private Partnerships begins by exploring the foundational aspects of PPPs, along with the various challenges that arise throughout the PPP process. It delves into the intricacies of how these partnerships function and the potential pitfalls that can occur, especially regarding corruption risks that can jeopardize public procurement initiatives.

As governments globally increasingly rely on Public-Private Partnerships to deliver essential services, the book highlights the inherent vulnerabilities at different stages of PPP models. It examines these risks through the lens of contract theory, principal-agent theory, and transaction cost economics. The discussion emphasizes the critical need for effective control mechanisms to mitigate these risks and ensure the integrity of PPP arrangements.

Furthermore, Risk Management in Public-Private Partnerships underscores the necessity of good governance in the implementation of PPPs. It outlines the principles and procedures of project risk management (PRM) established by a working group from the Association of Project Managers. The book concludes with practical strategies and solutions aimed at overcoming the limitations and challenges that currently hinder the effectiveness of PPPs in delivering public goods and services.