The Review on Risk Identification and Risk Allocation in PPP Model

Abstract

Public private partnership (PPP) is the important and effective mechanism to introduce a big project for one country. Because PPP project is a large project, generally it consumes high amount of financial investment and involves with various risks. Risk management in PPP is one of the keys to project success as it needs the most suitable sector to handle every specific kind of risk that may happen through the whole project life. This paper conducts a summary and resume of two significant risk processes, risk identification and risk allocation on PPP infrastructure project. Risk identification part includes the mechanism, procedure and the principle risks that may appear on each PPP project from many countries. Moreover, preferred risk allocation from three different countries, the UK, Nigeria and China, will be summarized and compared whether they should be retained by public sector, allocated to private sector or both of them share it together.