Assessing risk in infrastructure public private partnerships

Extract: Public private partnerships are a method for the delivery of social and economic infrastructure services in over 80 countries worldwide. PPPs are a contractual arrangement between public and private entities through which the skills, assets and/or financial resources of both sectors are allocated in such a manner that provides optimal service delivery and good value to society. Central to the operation of public private partnerships is the systematic evaluation of the procurement options available to government, an output specification to encourage private design, risk transfer, construction and operational innovation, the detailed analysis of projects over their operational life-cycle, a rigorous and competitive bid process, and the selection of proposals that deliver value for money.