Development of the PPP reference model modified to contain risks

The PPP reference model modified to contain risks is equal to the base PPP base reference model in addition to the risk costs (note that column of modification for risk in the table below)

The PPP reference model modified to contain risks shall distinguish between the transferable risks (risks that can be transferred to the private sector because it is more suitable to manage these risks) and residual risks (risks that the government proposes to manage by its own)

An example of the PPP reference model modified to contain risks is shown in the table below:

Year

Capital Costs

Maintenance Costs

Operational Costs

Indirect Costs

Revenues

Modification for risks

Total

Discount factor

Reduced flows

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total