Risk:Awareness, Identification and Mitigation in PPP Projects

Public Private Partnerships have emerged as one of the latest and successful means for building and rebuilding infra structure framework in developed and developing countries. Shortage of funds and associated constraints has given rise to PPP model. There are various phases in development of PPP projects in which different risks come into play. Due to the risks PPP projects are always subjected to probability of failure. In PPP projects, risk management plays a crucial role. Risk management is handling risks involved in a project, which is an ongoing process that continues throughout the life cycle of the concession period of PPP project. This study is focused on survey methodology in order to check the awareness and knowledge regarding risk management through which an attempt is made to formulate criticality of risks. In this paper different types of project risks will be identified. Attempt to prepare general framework for risk management which include identification of risk events and finally risk mitigation measures will be done. Based on the survey results, the Collection risk, Political risk, and Construction risk are most critical. Risk mitigating measures are drafted to these critical risks and a risk management framework for PPP models is proposed.