Typology and Control od the Risks by the public private partnership Cover Image

РИЗИЦИ ЈАВНО ЈАВНО-ПРИВАТНИХ ПАРТНЕРСТАВА: ПОЛАЗНА РАЗМАТРАЊА
Typology and Control od the Risks by the public private partnership

Author(s): Predrag Cvetković
Subject(s): Law, Constitution, Jurisprudence, International Law, Commercial Law
Published by: Правни факултет Универзитета у Нишу
Keywords: public-private partnerships; risks; infrastructure

Summary/Abstract: The issue of adequate and balanced risk sharing is crucial to the success of a particular PPP project. The successful PPP project should allocate the risks in accordance with the following general rule: the risk is allocated to the actor that has not only an interest to eliminate or reduce the probability of occurrence of concrete risk and eliminate its effects, but also has available resources (technological, economical, expert knowledge, political support) to respond in the shortest possible time to the occurrence of the particular risk. The allocation of risk must contribute to the fulfillment of interest of various actors of PPP structure: namely, public partner needs positive results as the impetus for own political interests, based on the success in delivering the public services; on the other hand, private partner seeks recovery of investment and realization of appropriate margin of profit. The involvement of broader circle of participants in PPP project and higher level of rights, obligations and responsibilities diversification has positive effect on the risks allocation. The risk allocation in PPP projects is also determined by the roles taken by public partner (“grantor”; “exclusive buyer”) as well the role of private partner (“sponsors”, “creditor”, building contractor”, “manager”).

  • Issue Year: LXIII/2012
  • Issue No: 63
  • Page Range: 121-145
  • Page Count: 25
  • Language: Serbian