Abstract
Public-Private Partnership (PPP) infrastructure funding mechanism is increasingly being used by many countries in the world including South Africa to finance infrastructure. The use of this funding mechanism has been necessitated by the increasing need to bridge the infrastructural gaps that exist in these countries. The success of the PPP model lies in equitable risk allocation.
The problem is that, although PPPs provide a good substitute for the funding and delivery of infrastructure projects in the world, some projects in South Africa especially in provincial departments and municipalities are failing because risks are being miscalculated and apportioned to parties who are without the understanding, means and competencies to manage them. The study was carried out to determine whether the way in which risks are allocated have effect on PPP project success. The case studies provided information on how in one project appropriate risk allocation was achieved and not in the another PPP project, where there was failure or delay. In this study the case study method was used. It provided comprehensive knowledge and observations on how risk allocation is dealt with in South Africa’s PPP infrastructure projects. This finding demonstrates the complexity and obscurity of risks faced by those involved in PPP projects and the problems in apportioning them correctly. Recommendations regarding how to better allocate risks in such projects are made.
M.Ing. (Engineering Management)