Dr. Jonathan Gifford was asked to join the International Transport Forum (ITF)/Organization for Economic Cooperation and Development (OECD) Private Investment in Infrastructure: Infrastructure Risk Treatment and Moving Beyond the PPP Working Group. Mr. Stephen Alchin from Infrastructure Australia will serve as chair. The group consists of industry experts from across the globe and they plan to investigate how risk should be treated in private participation models in infrastructure or public procurement in general.
Just a few of the key issues they will examine include examples of inefficient risk pricing in P3s, the comparative perspective of risk pricing in regulated concessions vs. privatizations, perceptions about risks and the distinction between risk and uncertainty, and whether the risk that’s often transferred by the public sector manageable.