Risk Management, Governance and Financing Issues in Public-Private Partnership Transportation Projects
This paper discusses issues related to risk management, governance, and financing of public-private partnerships transportation projects. The allocation of risks and the requirements for ownership and equity provision were examined through analysis of a range of contracts. Lessons learnt from a seri...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Penerbit Universiti Malaysia Pahang
2017
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| Subjects: | |
| Online Access: | http://umpir.ump.edu.my/id/eprint/19476/1/fim-2017-putu-%20Risk%20Management%2C%20Governance%20and%20Financing.pdf |
| _version_ | 1796992415220891648 |
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| author | Mandiartha, Putu Intan Suhana, Mohd Razelan Azlina, Ismail |
| author_facet | Mandiartha, Putu Intan Suhana, Mohd Razelan Azlina, Ismail |
| author_sort | Mandiartha, Putu |
| collection | UMP |
| description | This paper discusses issues related to risk management, governance, and financing of public-private partnerships transportation projects. The allocation of risks and the requirements for ownership and equity provision were examined through analysis of a range of contracts. Lessons learnt from a series of Australia’s public-private partnerships transportation projects are also presented. The results showed that from the perspective of risk allocation, the arrangements were consistent among the projects. Some fluctuations, however, were observed in terms of equity provision. Initially, the contracts were developed based on the private sector taking full traffic demand risk and promising outcomes led to revenue sharing clauses being introduced. Consequently, overoptimistic demand forecasts resulted in the market rejecting the acceptance of traffic demand risk.
The paper also presents the variation between the case study projects in terms of excess
revenue sharing. The analysis also suggests that, in arranging these types of projects,
traffic demand issue would be prominent and should be given major concern since it
would be closely related with the revenue of the projects, which in turn would affect the
equity of the projects. |
| first_indexed | 2024-03-06T12:19:45Z |
| format | Article |
| id | UMPir19476 |
| institution | Universiti Malaysia Pahang |
| language | English |
| last_indexed | 2024-03-06T12:19:45Z |
| publishDate | 2017 |
| publisher | Penerbit Universiti Malaysia Pahang |
| record_format | dspace |
| spelling | UMPir194762018-07-20T08:40:54Z http://umpir.ump.edu.my/id/eprint/19476/ Risk Management, Governance and Financing Issues in Public-Private Partnership Transportation Projects Mandiartha, Putu Intan Suhana, Mohd Razelan Azlina, Ismail TA Engineering (General). Civil engineering (General) This paper discusses issues related to risk management, governance, and financing of public-private partnerships transportation projects. The allocation of risks and the requirements for ownership and equity provision were examined through analysis of a range of contracts. Lessons learnt from a series of Australia’s public-private partnerships transportation projects are also presented. The results showed that from the perspective of risk allocation, the arrangements were consistent among the projects. Some fluctuations, however, were observed in terms of equity provision. Initially, the contracts were developed based on the private sector taking full traffic demand risk and promising outcomes led to revenue sharing clauses being introduced. Consequently, overoptimistic demand forecasts resulted in the market rejecting the acceptance of traffic demand risk. The paper also presents the variation between the case study projects in terms of excess revenue sharing. The analysis also suggests that, in arranging these types of projects, traffic demand issue would be prominent and should be given major concern since it would be closely related with the revenue of the projects, which in turn would affect the equity of the projects. Penerbit Universiti Malaysia Pahang 2017-12 Article PeerReviewed pdf en http://umpir.ump.edu.my/id/eprint/19476/1/fim-2017-putu-%20Risk%20Management%2C%20Governance%20and%20Financing.pdf Mandiartha, Putu and Intan Suhana, Mohd Razelan and Azlina, Ismail (2017) Risk Management, Governance and Financing Issues in Public-Private Partnership Transportation Projects. Journal of Governance & Integrity, 1 (1). pp. 80-98. ISSN 2600-7479. (Published) http://jgi.ump.edu.my/index.php/en/vol-1-issue-1-2017/32-risk-management-governance-and-financing-issues-in-public-private-partnership-transportation-projects/file |
| spellingShingle | TA Engineering (General). Civil engineering (General) Mandiartha, Putu Intan Suhana, Mohd Razelan Azlina, Ismail Risk Management, Governance and Financing Issues in Public-Private Partnership Transportation Projects |
| title | Risk Management, Governance and Financing Issues in Public-Private Partnership Transportation Projects |
| title_full | Risk Management, Governance and Financing Issues in Public-Private Partnership Transportation Projects |
| title_fullStr | Risk Management, Governance and Financing Issues in Public-Private Partnership Transportation Projects |
| title_full_unstemmed | Risk Management, Governance and Financing Issues in Public-Private Partnership Transportation Projects |
| title_short | Risk Management, Governance and Financing Issues in Public-Private Partnership Transportation Projects |
| title_sort | risk management governance and financing issues in public private partnership transportation projects |
| topic | TA Engineering (General). Civil engineering (General) |
| url | http://umpir.ump.edu.my/id/eprint/19476/1/fim-2017-putu-%20Risk%20Management%2C%20Governance%20and%20Financing.pdf |
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