Risk management by SPV partners in toll road public private partnerships

• Published in: Public management review Vol. 21; no. 5; pp. 711 - 731
• Main Authors: Burke, Richard, Demirag, Istemi
• Format: Journal Article
• Language: English
• Published: Abingdon Routledge 04-05-2019; Taylor & Francis Ltd
• Subjects: Case studies; Contractors; Domestic partners; international SPV partners; Money; Project finance; Public private partnerships; risk; Risk management; risk transfer; sub-contractors; Toll roads
• ISSN: 1471-9037; 1471-9045
• DOI: 10.1080/14719037.2018.1523450

Research on risk management in Public Private Partnerships (PPPs) has largely overlooked that the Special Purpose Vehicle (SPV) is made up of several project partners with different interests and objectives to manage risk. This paper makes an important contribution to this literature as it articulates SPV partners' perceptions of how they manage risk in toll road PPPs. Our case studies show that the different skillsets of both the international and domestic partners with their sub-contractors provide opportunities for mitigating and managing risk but also pose potential problems in terms of measuring and obtaining value for money for taxpayers.