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Literature Review

Vol. 20 No. 35 (2018): Journal 35

Classification and Allocation of Risks in Infrastructure Projects Developed through Public–Private Partnerships (PPP) in Costa Rica

DOI:
https://doi.org/10.15517/80t8ya60
Submitted
November 14, 2025
Published
2025-11-14

Abstract

The Public-Private Partnerships (PPP) model for the development of public infrastructure has changed from being perceived only as a finance model, to be considered a management model. Beyond its well-known advantages (such as involving private funding and reducing public debt), it is nowadays considered as the best way for transferring the risks from the public to the private sector. This risk allocation between the public and private parties is one of its critical success factors, hence it is critical to focus in this topic to guarantee the success of future projects. Despite of its relevance, the process of risk allocation has often been poorly executed around the world, and Costa Rica has not been the exception.

In Costa Rica, the process of risk identification in PPP projects has failed on comprising all the existing risks, and this situation has had a negative impact in them. The identification, classification and allocation of risks is the foundation of a good management of PPP projects. Therefore, this article aims to provide professionals(locals and foreigners), policy makers, investors and researchers a better understanding of risk allocation i npublic infrastructure projects developed through PPP, and to help future research and projects.

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