No abstract

This research sought to determine how public–private partnership (PPP) arrangements can more efficiently address risk management issues using the example of Mozambique as a case study. Analyses of 15 interviews in this country were conducted using the Gioia methodology. The results indicate that integrating key risk indicators into PPP contracts can improve risk management. These measures have been widely used in company risk management. The indicators can serve as monitoring, reviewing and supervising tools, allowing the integration of external factors into PPP contracts at the right time, which is hard to predict when the contracts are signed. Key risk indicators can capture megatrends, track risk evolution and develop future scenarios throughout the entire lifecycle of contracts, preventing conflicts between partners, contract renegotiations or early contract terminations by facilitating an improved understanding of contracts' current realities. The findings suggest that these measures should be applied by PPP units. The proposed approach encourages originality and empirical research-based improvements of PPP risk management frameworks and provides guidelines for future studies.

This study focused on the unbalanced relationships that can arise in current public–private partnership (PPP) risk management frameworks, especially in developing countries’ water sectors. Different stakeholders’ perceptions of risk management were examined by analyzing 15 interviews in Portugal and Mozambique. The hybrid method included semantic, descriptive statistic, content, and narrative analyses. To achieve the research objectives, the semi-structured interview transcripts were processed using quantitative and qualitative techniques to collate relevant actors’ opinions of risk management in PPP water projects. Five risk categories were identified. The interviewed experts ranked the financial risk category as the most crucial, followed by infrastructure, commercial, technical and operational, and context risks. However, when the transcripts were evaluated from a risk factor perspective, the context risk category unexpectedly jumped to first place. Twenty-five high-impact risk factors were isolated in the semi-structured interview contents. The top five most critical risk factors were political interference, no performance measurement baselines, an unfavorable private investment climate, nonpayment of bills, and water assets uncertain condition. The results comprise a fresh contribution to the existing knowledge about experts’ perceptions of PPP contract risks, including that prior research and specialists categorize financial risks as the most important. The findings further reveal that experts consider managing context risks to be the key factor in PPPs success in developing countries, as well as highlighting the need to explore these risks more fully in emerging economies’ water sectors. In addition, a complete risk management cycle is proposed based on the interviewed professionals’ opinions, in which risk assessment and risk treatment or mitigation measures are dealt with simultaneously.