As part of its ‘leading practices’ mandate, the GI Hub is developing a set of annotated risk allocation matrices for public-private partnership (PPP) transactions, in a variety of sectors. Risk allocation is at the center of every PPP transaction, and a deep understanding of the risk allocation arrangements is a precondition to the drafting of every PPP agreement. The appropriate application of risk allocation principles is what determines whether a given PPP project will be ‘bankable’ (i.e. financeable), and whether it will be long-lasting (i.e. able to remain viable though to the end of a long-term contract).
The GI Hub has engaged Norton Rose Fulbright, a global law firm, to prepare a report on Allocating Risks in Public-Private Partnership (PPP) Contracts, 2016 Edition (the Report), with matrices showing the allocation of risks as between the public and private sectors in typical PPP transactions, along with related information on mitigative measures and typical Government support arrangements. Separate matrices are developed for 12 designated types of projects within the transport, energy and water and sanitation sectors.