Home Opinion Pieces RISK BALANCE SHOULD BE ESTABLISHED CORRECTLY
RISK BALANCE SHOULD BE ESTABLISHED CORRECTLY

RISK BALANCE SHOULD BE ESTABLISHED CORRECTLY

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Public Private Sector Cooperation (PPP) projects require meticulous preparation and planning, which is necessary to ensure that the project gains value and is sustainable for all parties. Therefore, it is important to establish the legal regulations and financial framework for strategic decisions regarding PPP in a way to support the implementation and development of these studies by policy makers and the public sector. Another factor that determines the success of the projects is to ensure that the needs and objectives of both parties are manifested in an accurate manner and that agreement is reached on the matter.

 

RISK DISTRIBUTION MUST BE ENSURED

The most important issue for the effective implementation of public private partnership projects in Turkey, is to ensure the establishment of the right balance of risk and continuity. The balance of performance is established in accordance with the risk transfer, which can be defined as the heart of the PPP projects; in other words, it is established in accordance with the distribution of the risk amongst the stakeholders. If a good balance is not achieved in the preparation and planning phase of the project, this means that costs will increase. This will result in a bottleneck in which one or both of the parties cannot fully manifest their potential.

 

PPP IS APPLIED IN MANY AREAS

Although PPP projects are the most prominent in the health sector, especially in city hospitals, this model has been applied in the transportation and energy sectors for many years. In this respect, Akfen Holding started its public private sector cooperation activities with the partnership in the Atatürk Airport Build Operate Transfer project. Subsequently our company has been involved in renewable energy, wastewater and drinking water distribution projects. Akfen completed the Isparta City Hospital in March 2017 and Eskişehir City Hospital in October 2018, and the Tekirdağ City Hospital is planned to be commissioned at the end of 2019.

 

Sıla Cılız İnanç/ Akfen Holding General Director

 

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