When GI Hub first approached us to compile the Allocating Risks in Public-Private Partnership report we faced an interesting challenge. How can we best add to the wealth of work done before in a way that will make a real contribution to the development of infrastructure and PPP? We spent some time internally working up how we could develop our offering and a key proponent of our proposal was the development of this blog.
The report is laid out in a way that will allow you, the reader, to search for information that is of interest to you. All of the sectors and the projects we reviewed have closed, and are bankable, but that doesn’t mean they are the only way to close a project in that sector. Your own challenge is unique. The infrastructure you are looking to develop, the capital available in your region and the system of law under which you will procure infrastructure will deliver a solution bespoke for your needs. The report supports you in this process by outlining ways that other projects have resolved some of the complex issues that you will face.
The projects we reviewed are diverse. We have identified and considered projects in developed and emerging markets and we have considered projects under common and civil systems of law. The report does not provide contractual drafting, but explores how risk is allocated between the project company and government. Where risk is allocated to the private sector it will usually be passed onto a third party contractor. We have not, in this report, commented on that drop down or re-allocation of the risk. We have also attempted to adopt a ‘middle of the road’ approach to risk. Neither too government friendly, nor too private sector friendly, and the benefit of reviewing projects that have attracted finance is that compromises will have been made in various aspects of the project to reach the final solution. As I said, the report is designed to be a map; to show you some of the routes or solutions that others have made that may help you in respect of your own key objectives and challenges.
Please engage with us through this blog. Challenge, agree, disagree and question us! We want to understand your challenges so that we can all support the future development of key infrastructure around the world in a manner that is economically, socially and environmentally sustainable. Allow us to help you.