Risk allocation as a success factor for P3 infrastructure procurement

Impacts of poorly distributed risk in infrastructure procurement

Cost overruns in PPP

Example: Motorways in Greece receive low traffic after the financial crisis

Delay in the delivery of PPP projects

Project design should rely on expert input

Example: Denmark builds a bored tunnel for the Storebaelt link

Despite risk assessments that recommended an immersed tube tunnel, a bored tunnel was procured for the Storebaelt link in Denmark . The decision was made in order to avoid dredging a trench for an immersed tunnel. This decision significantly impacted project outcomes, as the bored tunnel was more difficult to construct than initially estimated. Although there were challenges during the project to build the East Tunnel, the owner and contractor took a proactive approach to solving problems.

Dynamic risk allocation in P3 infrastructure contracts

Aligning incentives between public agencies and private contractors ensures that projects remain operationally effective over time. As economic, environmental and policy conditions change, risks must be continually reallocated.

Transparency is central for comprehensive risk management

Visibility of project status, risks and milestones is essential for ensuring fair risk allocation and to guarantee that all contractual obligations are met. Collaboration between public and private sector stakeholders in a central platform enables data-driven decision making and adaptive risk management throughout the project lifecycle.Manage risk from tender to project delivery with Ansarada's Procure , a single, central tool where stakeholders can collaborate throughout the project lifecycle. With data-driven insights and full traceability, Procure is designed to help PPP projects succeed.