The complexity of public-private partnership project procurement requires an effective process for pricing, managing and appropriate allocation of risks. The level at which risk is priced and the magnitude of risks transferred to the private sector will have a significant impact on the cost of the PPP deals as well as on the value for money analysis and on the section of the optimum investment options.
The construction industry tends to concentrate on the effectiveness of risk management strategies and to some extent ignores the price of risk and its impact on whole life cost of building assets. There is a pressing need for a universal framework for the determination of fair value of risks throughout the PPP procurement processes.
Risk Pricing Strategies for Public-Private Partnership Projects addresses the issues of risk pricing and demonstrates the use of a coherent strategy to arrive at a fair risk price. The focus of the book is on providing risk pricing strategies to maximise return on risk retention and allocation in the procurement of PPP projects. With its up-to-date coverage of the latest developments in risk pricing and comprehensive treatment of the methodologies involved in designing and building risk pricing strategies, the book offers a simple model for pricing risks.
The book follows a thematic structure: PPP processes map; Risk, uncertainty and bias; Risk pricing management strategies; Risk pricing measurement and modelling; Risk pricing at each of the project life cycle stages β and deals with all the important risk pricing issues, using relevant real-world situations through case study examples. It explains how the theory and strategies of risk pricing can be successfully applied to real PPP projects and reflects the broad understanding required by todayβs project risk analysts, in their new and important role in PPP contract management.
Content:
Chapter 1 Mapping of the PPP's Processes and concepts (pages 1β30):
Chapter 2 Uncertainty in Pricing Risk (pages 31β57):
Chapter 3 Bias in Risk Pricing (pages 59β89):
Chapter 4 Management Strategies for Risk Pricing (pages 91β106):
Chapter 5 Framework for Pricing PPP Risks (pages 107β137):
Chapter 6 Risk Measurement and Modelling (pages 139β174):
Chapter 7 Risk Allocation Networks in PPP Contracts (pages 175β194):
Chapter 8 Pricing Development and Construction Risks (pages 195β220):
Chapter 9 Pricing Operational Risks (pages 221β242):
Chapter 10 Financial Risk Assessment in PPP Projects (pages 243β261):