Risk Management in Ppp Road Projects

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NICMAR

RISK MANAGEMENT OF PPP IN ROAD PROJECTS

By
Varun Krishna
Anoop K.N
Khushpreet Singh

PGP ACM 25th Batch
(2011- 2013)

A Project seminar submitted in partial fulfillment of the Academic requirements of the Post Graduate Programme in Advanced Construction Management (PGP ACM)

NATIONAL INSTITUTE OF CONSTRUCTION
MANAGEMENT AND RESEARCH
Pune Campus

DECLARATION

I/We declare that the project seminar entitled “Risk Management of PPP in Road Projects” is the bona fide work carried out by me/us, under the guidance of Dr Mahesh Gangadhar. Further we declare that this has not been previously formed the basis of award of any degree, diploma, associate-ship or other similar degrees or diplomas, and has not been submitted anywhere else.

Date:Varun Krishna – 251090

Anoop K.N – 251091

Khushpreet Singh - 251086

PGP ACM 25th
Batch (2011-2013)
NICMAR Pune

CERTIFICATE

This is to certify that the project seminar entitled “Risk Management of PPP in Road Projects” is the bona fide work of Mr. Anoop K .N, Mr. Varun Krishna and Mr. Khushpreet Singh in partial fulfillment of the academic requirements for the award of Post Graduate Programme in Advanced Construction Management (PGP ACM). This work is carried out by them, under my guidance and supervision.

Date: Guide

| CHAPTER| PAGE NO.|
1. | CHAPTER 1: INTRODUCTION| 1 - 9|
1.1.| BACKGROUND| 1|
1.2.| AIMS AND OBJECTIVES| 4|
1.3.| METHODOLOGY| 5|
1.4.| SCOPE OF WORK| 6|
1.5.| SIGNIFICANCE| 6|
1.6.| OUTLINE OF REPORT| 8|
| | |
2. | CHAPTER 2: LITERATURE REVIEW: PPP | 10 - 24|
2.1.| DEFINITION OF PPP| 10|
2.2.| MODELS OF PPP| 13|
2.3.| NEEP OF PPP| 15|
2.4.| ADVANTAGES & DISADVANTAGES OF PPP| 17| 2.5.| SPECIAL PURPOSE VEHICLE| 21|
2.6.| STAKEHOLDERS| 23|
| | |
3. | CHAPTER 3: LITERATURE REVIEW: RISK MANAGEMENT| 25 - 46| 3.1.| DEFINITION OF RISK MANAGEMENT| 25|
3.2.| DIFFERENT STAGES OF RISK MANAGEMENT| 26|
3.3.| NEED FOR RISK MANAGEMENT IN TRANSPORTATION PROJECTS| 34| 3.4.| RISKS IN DIFFERENT PHASES OF PROJECTS| 35| 3.5.| MANAGEMENT OF RISKS IDENTIFIED| 42|

| CONCLUSION OF THE CHAPTER| 45|
4. | CHAPTER 4: RISK MANAGEMENT OF PPP ROAD PROJECTS| __| | | |
5. | CHAPTER 5: MANAGEMENT OF HIGH PROBABILITY & HIGH IMPACT RISKS| __| | | |
6. | CHAPTER 6: CONCLUSION & RECOMMENDATIONS| __|

CHAPTER 1
INTRODUCTION

1.1 BACKGROUND:

India, one among the promising developing nations has re-emerged as the fastest growing economies in the world. With an upsurge in investment and robust macroeconomic fundamentals, the future of India looks promising. According to many economists, India could unleash its full potentials, provided it improves the Infrastructural facilities, which are at present not sufficient to meet the growing demands of the economy. Therefore, Indian governments’ first priority is rising to the challenge of maintaining and managing high growth through investment in Infrastructure. Inadequate infrastructure was recognized in the Eleventh Plan as a major constraint on rapid growth. The Plan had, therefore, emphasized the need for massive expansion in investment in infrastructure based on a combination of public and private investment, the latter through various forms of public-private partnerships. Substantial progress has been made in this respect. The total investment in infrastructure which includes roads, railways, ports, airports, electricity, telecommunications, oil gas pipelines and irrigation is estimated to have increased from 5.7 per cent of GDP in the base year of the Eleventh Plan to around 8.0...
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