Risk management in public-private partnersip (PPP) projects from the project management perspective

The research explores the project management issue and its contribution to effective management of risks in public-private partnership (PPP) projects. A framework has been established by identifying the emerging challenges and the approaches to effective risk management. While the approaches to identifying the appropriate partnership arrangement and bidding processes are reasonably established, in general, the effective management process in large-scale transactions involving two different agencies: public and private in PPP projects is quite critical. There has been increasing evidence of criticism in delivering public projects with private participation across Australia as well as many other countries. In order to evaluate the management performance of PPP projects, a thorough analysis of the nuts and bolts of the partnership arrangement is important at an early stage, considering a whole-of-life approach. The literature survey and the case study proved the importance of the management programme for the effective execution of PPPs. Appropriate understanding and quantification of critical risks in PPP projects are the keys for project managers to make the right decisions and take relevant action. A recently completed major infrastructure project in Melbourne has been studied to understand the underlying challenges in managing and delivering PPPs from the project manager's perspective. These challenges include design complexity, stakeholder integration, risk allocations and constructability issues. The framework highlights the project management approach for appropriate identification, allocation and management of risks associated in the PPP process.