Financial Risk and its Consequences as Inherent Element of Public-Private Partnership Projects

Abstract

The chapter concerns agreements implemented on a PPP basis and risks connected with this kind of projects. The most significant risks are as follows: the delay in construction works, the increase in construction costs, cyclicality of demand and changes in legal regulations. According to the respondents, it is the private sector which should assume full risk of the above-mentioned types, except for changes in legal regulations, the risk for which should be assumed by the public entities enacting such laws. The respondents would like to have foreign partners and companies from proper sectors as partners in the implementation of PPP projects, while cooperation with developers and social organizations was met with scepticism. Mutual trust (still missing) and the reputation of a potential investor were seen as factors which influence the development of cooperation between sectors.