STEP #2: ALLOCATING THE RISKS

Once the major risks have been identified, the workshop participants allocate each of the risks either to the public sector, or to the private sector or as a risk shared by both public sector and private sector, depending on the nature of the specific risk in question, as well as the delivery approach and related project agreement terms.

The following table shows how a risk is allocated to the appropriate stakeholder depending on the procurement model. The risk "Design Coordination and Completeness" is one of several key risks that are transferred to the private sector under AFP (as indicated by the X's).

Allocation

Traditional

AFP

RISK

Pub.

Pvt.

Shrd.

Pub.

Pvt.

Shrd.

Design

Completeness

Coordination