PPP and risk management
O'Donnell, P.
PPP and risk management - 2003 - Building Economist June 2003, 17-23(7) .
Discusses risk and risk valuation on PPP projects looking at the key issues. Transfer of risk to the private sector has been identified as the major component of value improvement in PPP. Therefore the valuation of risk is critically important in determining the Public Sector Comparator (PSC) and then in assessing the relative merits of bids received, compared to the alternative of traditional public procurement. Discusses simplistic methods for risk valuation proposed for use in the PPP literature and questions their validity as they may undervalue risk. Recommends using the whole probability distribution based on historical data where possible to value risk.
PUBLIC PRIVATE PARTNERSHIPS
RISK VALUATION
RISK MANAGEMENT
VALUATION METHODS
PUBLIC SECTOR COMPARATORS
PUBLIC PROCUREMENT
PPP and risk management - 2003 - Building Economist June 2003, 17-23(7) .
Discusses risk and risk valuation on PPP projects looking at the key issues. Transfer of risk to the private sector has been identified as the major component of value improvement in PPP. Therefore the valuation of risk is critically important in determining the Public Sector Comparator (PSC) and then in assessing the relative merits of bids received, compared to the alternative of traditional public procurement. Discusses simplistic methods for risk valuation proposed for use in the PPP literature and questions their validity as they may undervalue risk. Recommends using the whole probability distribution based on historical data where possible to value risk.
PUBLIC PRIVATE PARTNERSHIPS
RISK VALUATION
RISK MANAGEMENT
VALUATION METHODS
PUBLIC SECTOR COMPARATORS
PUBLIC PROCUREMENT