This chapter identifies the key critical pillars for a successful PPP project implementation in order to assist all stakeholders in the process. It also analyses the potential application models of PPP in respect to ingredients, tools and the roles of ICT. The chapter is based on results from a comprehensive analysis of even cases of successful PPP projects that have been implemented in different countries over the years. As a result several keys for an effective risk management have been identified. This can explain why some PPP projects are successful whereas others are not. It is concluded these key pillars must be dearly considered if PPP project is to succeed.
The greatest potential for control tends to exist at the point where action takes place. - Louis A. Allen
TopIngredients For A Successful Risk Management
The opening statement to their catchy article entitled ‘On best practices for risk management in complex projects’ Benta, Podean and Mircean (2011) pronounced, thus: “Risk management shall be proactive, (p.142)”. Successful risk management is recognized as an integral part of a good and effective PPP project practices (Smith & Fischbachera, 2009). As the saying goes, a chain is only as strong as its weakest link. This adage rings true in many situations. In regard to risk, for example, there are countless points at which various individuals might contribute to the overall strength of an organization’s management of risks (Marle & Vidal, 2011). Effective risk management is an interactive process consisting of steps, which when undertaken in sequence, enable continual improvement in decision making (Kwan & Leung, 2011). Mouraviev (2012) portrays effective risk management as a logical and systematic method of establishing the context, identifying, analyzing, treating, monitoring and communicating risks associated with any activity, function or process in a way that will enable organization sot minimize losses and maximize opportunities. Zou, Zhang and Wang (2007) compliment effective risk management is as much about identifying opportunities as avoiding or mitigating losses. Suffice to note that significant hurdles in the operating environment of risk partnerships must be overcome to ensure risk management process can deliver effective and effective PPP project implementation in ways that preserve the public interest. at the fundamental level, the parties must establish open and transparent PPP environment, retain not only sufficient but also correspondingly adequate and fair to retain sufficient expertise in risk and contract management and remain determine to achieve the ends for which the PPP was performed.