RISK ANALYSIS IN PUBLIC-PRIVATE PARTNERSHIP PROJECTS
Abstract
The article discusses the methodological aspects of the analysis of project risks arising from the implementation of public-private partnership projects. The methodology allows at the stage of project planning to manage project risks, during the period of project implementation, systematically identify and classify events that can adversely affect the progress of work or the projects themselves in general, and timely develop methods of responding to risks with the aim of reducing the degree of negative influences on projects. The distribution of risks is an obligatory condition for structuring private-public relations in public-private partnership projects, and the greatest difficulty in preparing a public-private partnership project arises precisely in the search for the optimal allocation of risks. PPP-related uncertainties or risks can impact project delivery throughout the entire project lifecycleThe features that characterize the risks, taking into account their dynamism and the impossibility of being constant and predictable, are indicated. The article reveals the issue of risk assessment strategies for public-private partnership contracts. Risk assessment strategies are systematized and characteristics of each risk assessment strategy used by partners are given. Four general risk mitigation strategies for public-private partnership projects are considered. It is noted that the impact of risks is usually assessed in terms of how it affects the organization financially. The necessity of including SPVs (project companies) for the distribution of risks between partners has been proven. Risk mitigation tools in public-private partnership projects for the public sector are presented. Thanks to the improvement, development and systematization of risk assessment criteria, followed by the definition of methodological approaches to the formation of risks and the development of tools for their quantitative assessment, projects based on PPP models are being intensively developed.
References
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