Dealing with Uncertainty in Infrastructure Public-Private Partnership Projects
Hatice Çiğdem Demirel (TU Delft - Integral Design & Management)
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Abstract
This research concerns dealing with uncertainty in infrastructure Public-Private Partnership (PPP) projects. PPPs comprise a network of actors or organizations in mutual relationships regulated by contracts. These contracts arrange a division of tasks and responsibilities between contracting parties, and they allocate risks and uncertainties. Where risk is a calculable event concerning probability and consequence, uncertainty is the unclear future state in which there is no possibility of placing a numerical probability or calculating the possible effect on an impactful event occurring. Uncertainties are inevitable in infrastructure PPPs because of the dynamic environment in which PPPs usually are implemented and the complex structure of their arrangements. Moreover, the long-term nature of the contracts increases exposure to uncertainty over the life-cycle of the project...