Ex Post Risk Management in Public-Private Partnership Infrastructure Projects

Public-private partnerships (PPPs) have been widely used in infrastructure development in the past 30 years. However, a number of PPP projects have suffered serious risk scenarios and ended up with project failures. The change from a short-term contract period of traditional projects (fewer than five years) to a long-term contract period of PPP projects (20--30 years) has raised challenges to the traditional risk management. The high occurrence of renegotiations and early terminations of PPP projects suggest that ex ante risk management is no longer enough and ex post risk management is needed. This study aims to propose an ex post risk management model, under which renegotiations and early terminations are introduced. The application of this model begins with risk impact evaluation, then ex post risk response measures assessment, selection, and enforcement. An illustrative case is provided in the Appendix at the end of the article. The outputs of this study would facilitate governments' decision making in PPP projects under serious risk scenarios.
member content locked

Become a PMI member to gain access

or Join

Advertisement

Advertisement

Related Content

  • Project Management Journal

    Narratives of Project Risk Management member content locked

    By Green, Stuart D. | Dikmen, Irem The dominant narrative of project risk management pays homage to scientific rationality while conceptualizing risk as objective fact.

  • Project Management Journal

    Identifying Subjective Perspectives on Managing Underground Risks at Schiphol Airport member content locked

    By Biersteker, Erwin | van Marrewijk, Alfons | Koppenjan, Joop Drawing on Renn’s model and following a Q methodology, we identify four risk management approaches among asset managers and project managers working at the Dutch Schiphol Airport.

  • Project Management Journal

    Collective Mindfulness member content locked

    By Wang, Linzhuo | Müller, Ralf | Zhu, Fangwei | Yang, Xiaotian We investigated the mechanisms of collective mindfulness for megaproject organizational resilience prior to, during, and after recovery from crises.

  • PMI Case Study

    Saudi Aramco member content open

    This in-depth case study outlines a project to increase productivity with Saudi Arabian public petroleum and natural gas company, Saudi Aramco.

  • PM Network

    A certeza da incerteza member content open

    By Fewell, Jesse Por mais que ansiamos por um retorno pré-pandêmico, é ingênuo pensar que as velhas formas de trabalho um dia voltarão - mesmo para o ágil.

Advertisement