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Abstract

Recent pronouncements by senior government figures would suggest that, despite much opposition, PFl/PPP will remain the favoured route for the procurement of large public sector projects. There has been a considerable debate surrounding the Value for Money and Public Sector Comparator calculations essential to gaining approval for PFI/PPP, much of which has focused on how risks are allocated between the parties and how these risks are valued. This article considers another aspect of the risk element of PFI/PPP projects, specifically the role that the local authority risk management function performs, and perhaps should perform, in the process. Based on three local authority case studies, the research will suggest that there has been a marginal growth in the involvement of internal risk management experts by local authorities. Equally, there is evidence that this involvement could be considerably increased, bringing a number offinancial and operational benefits for local authorities.

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Minimising Risk: The Role of the Local Authority Risk Manager in PFTIPPP Contracts

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