Public–private partnership projects in Greece: risk ranking and preferred risk allocation

Abstract

Project participants, through experience, have an initial perception and predisposition towards risk and the types of risks they are willing and able to undertake. This is equally true for parties interested in public–private partnership (PPP) projects. These initial positions have been registered for the major Greek PPP market stakeholders potentially involved in a PPP arrangement through a survey covering all candidate construction companies, interested financing institutes and a number of public sector entities to be involved in PPPs. Findings revealed that stakeholders were, for the majority of risks identified, in agreement as to preferred risk allocation. Risk allocation preferences for construction companies were compared with similar findings for the UK, a mature PPP market, indicating a possible learning/maturing process based on the particular country background. Conclusions add to other surveys carried out on the subject and should enable public sector clients to establish a more efficient framework for risk allocation, thus reducing negotiations prior to contract award and minimizing the risk of poor risk distribution.

Keywords:

• Public–private partnerships
• risk allocation
• stakeholders

Acknowledgements

The authors would like to thank the anonymous referees for their helpful and constructive comments. Gratitude is due to the respondents for participating in the survey.

Notes

1. Law 2445/96 (Government Issue A 274 of 16/12/1996) amendments P.D. 3/98 and P.D. 75/99: Concession scheme between the Greek Public (Ministry of Public Works) and Atiiki Odos S.A.

2. Law 2338/95 (Government Issue A 202 of 14/9/1995): Contract approval for the New Athens Airport at Spata, formation of the company ‘International Airport of Athens S.A.’, approval of environmental plan and other decrees.

3. Law 2395/96 (Government Issue A 71 of 24/4/1996): Approval of Concession Scheme and three party agreements for the planning, construction, financing and exploitation of the Rio–Antirrio Bridge, environmental plan and other decrees.