The Portuguese water sector public private partnerships

: risk allocation analysis

Abstract

This thesis investigates the risk allocation of the Portuguese water sector Public Private Partnerships. Its objective is to identify the risk matrix of several Portuguese water sector PPPs and analyze whether or not those risks were properly allocated. Each risk category is compared with the literature view on efficient risk allocation. The conclusions are then tested on 3 case studies of ongoing Portuguese water PPPs. The findings reflect the Portuguese PPP experience history. The water sector PPPs are characterized by a lack of risk transfer to the private party particularly demand risk, which guarantees the private operator a business with very few risks and considerable high rates of return, resulting in a lack of Value for Money generation. Notwithstanding these findings, the water sector does present specific characteristics that can justify a risk matrix where less risk is transferred to the private party.

Date of Award	27 Oct 2016
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Ricardo Reis (Supervisor)