Risk allocation plays a crucial role in the successful development of public-private partnership (PPP) projects. However, despite being an important topic for scholars and practitioners, the existing literature does not provide sufficient evidence on how managing risks in solicited (SP) and unsolicited (USP) road PPP projects, and subsequently, on what the sustainability implications are for such managerial processes. This study aims to extend risk allocation studies by analyzing contracts in Chilean highway PPPs over the last decade based on a systematic content analysis framework and case study data. The framework was developed through line-by-line coding of contract provisions associated with risk-related issues, and data were collected from semi-structured interviews with Chilean PPP practitioners. Results show that, although the majority of risks are either shared or transferred to the private party in most contracts, there are important variations in the way allocation procedures are implemented for SPs and USPs. Contracts analyzed revealed that risk arrangement mechanisms have usually focused on the economic dimension of sustainability without fully incorporating social and environmental considerations, increasing protests in the long-term. Conclusions indicate that risk allocation procedures and sustainability considerations are highly dependent on project-specific features and contextual factors. Overall, the analysis uncovers that the level of autonomy given to the private sector in both SPs and USPs has contributed to properly manage technical and economic risks, but has failed to successfully allocate social and environmental concerns.
Collaborative water governance (CWG) has emerged as a promising framework to tackle water management challenges. Simple identification of participants however is not enough to unravel the intricacies of stakeholders’ interlinkages, roles and influences for robust CWG. A clear understanding of the stakeholders’ landscape is therefore required to underpin CWG. In this work, we combine stakeholder analysis (SA), social network analysis (SNA) and participatory processes (PP) under a theoretical collaborative governance framework to advance CWG in the contentious Rapel River Basin (RRB), Chile. By combining these techniques, we identified a cohort of leading (and secondary) stakeholders, their relationships and critical roles on basin-wide CWG-enabling networks (collaborative ties, information flows and financial exchanges) and their influence to achieve a shared vision for water planning. The results show members of this cohort perform critical roles (bridging, connecting and gatekeeping) across the networks and in influencing explicit elements of the shared vision. Specific CWG-enabling networks properties indicate a weak adaptive capacity of stakeholders to deal with potential water management challenges and strong prospects for sharing innovative ideas/solutions and achieving long-term water planning goals. A major CWG implementation challenge in the RRB is the lack of a leading organisation. One way forward would be formally organising stakeholders of the identified cohort to advance CWG in the RRB. By implementing the methodological framework, we facilitated social learning, fostered trust among stakeholders and mobilised efforts towards implementing CWG in practice in the contentious RRB.
Public-Private Partnership (PPP) programs have been developed widely for more than 30 years across the world. The continuity of these programs depends on an adequate balance of three-dimensional sustainability (i.e., economic, environmental, and social). Nevertheless, social sustainability has been demonstrated as being fragile because of the challenges to achieving the intended social legitimacy in PPP programs. This study aims to understand key challenges in achieving social legitimacy in road PPP programs by analyzing contractual clauses, legal frameworks, and stakeholders' interviews of two toll road PPP programs in Chile and Colombia. Three key challenges to social legitimacy were found: social involvement issues, distrust between impacted and responsible stakeholders, and lack of social criteria within toll tariff policy. Findings reveal that it is required to move beyond current consultation mechanisms and thoroughly involve the impacted groups as a relevant stakeholder typology in order to maximize value creation in user-pay PPP programs. In line with that, this study exposes that the claim of previous research for developing relational governance between the public and the private sectors is not enough for overcoming governance limitations and addressing social legitimacy in user-pay PPPs. It is also necessary to enhance relational governance in a triadic approach. This study contributes to the PPP body of knowledge by redirecting the discussion from overall legitimacy to social legitimacy challenges and by including the impacted stakeholders in the analysis of PPP governance mechanisms.
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