Abstract: The frequent occurrence of failures in PPP projects which caused great loss has raised attention from the government as well as the concessionaire. PPPs are complex arrangements for its long operation period and multiple players. Many types of risks in PPP projects may cause the project fail. The insurance is an important tool to transfer the risks. Through a comparison and analysis of international government PPP guidelines and contracts as well as the case studies worldwide, we have identified eight main insurance principles, discussed thirteen insurance types in different stages. An overall procedure would be established to improve the practices in PPP projects.
Abstract: Infrastructure investments are important in developing
countries, it will not only help to foster the economic growth of a
nation, but it will also act as a platform in which new forms of
partnership and collaboration can be developed mainly in East Asian
countries. Since the last two decades, many infrastructure projects
had been completed through build-operate-transfer (BOT) type of
procurement. The developments of BOT have attracted participation
of local and foreign private sector investor to secure funding and to
deliver projects on time, within the budget and to the required
specifications. Private sectors are preferred by the government in
East Asia to participate in BOT projects due to lack of public
funding. The finding has resulted that the private sector or promoter
of the BOT projects is exposed to multiple risks which have been
discussed in this paper. Effective risk management methods and
good managerial skills are required in ensuring the success of the
project. The review indicated that mitigation measures should be
employed by the promoter throughout the concession period and
support from the host government is also required in ensuring the
success of the BOT project.