Retain Appropriate Infrastructure Project Risks with Public Sector

6-retain appropriate risks

We strongly advocate appropriate sharing and retention of risk between the private and public sectors in infrastructure projects. PPPs can take a wide variety of forms with varying involvement of the private sector and with varying degree of risk transfer from government to the private sector. Properly implemented, PPPs and PFIs transfer risk from the public sector to entities that may be better qualified to bear it as well as be better qualified to reduce costs and create better service delivery outcomes. It also frees government resources and public funds to address pressing social problems or to develop projects that are less attractive to private investors. Issues that inevitably feature in policy discussions relate to economic transfers and distributional effects, e.g., who benefits and at what costs to others, rents, accountability, regional development, jobs, prices and tariffs.

Author: Sameer_Jain

Partner. Sameer Jain is founder of FinTech, the world’s first portal that seamlessly integrates traditional, illiquid and alternative investments within portfolios. Prior to this he was Chief Economist & Managing Director at AR Capital. Before that he headed Investment Content & Strategy at UBS Alternative Investments. At UBS, he served as a non-voting member of the Wealth Management Research investment committee, and as a capital allocator was responsible for all illiquid investing including fund manager selection and due diligence across the platform. Prior to UBS he headed product development & investment research at Citigroup Alternative Investments that managed over $75 billion of alternative investments across hedge funds, managed futures, private equity, credit structures, infrastructure and real estate. Here he led a team that developed proprietary models for portfolio strategy and asset allocation with alternative investments, provided investment support and research to pension plans, sovereign wealth funds, endowments as well as internal clients including Citi Private Bank. Before this he was with Cambridge Alternative Investments and SunGard (System Access) where he travelled to over 80 countries for work across Europe, Asia, Middle-East and Africa. He has written over 30 academic and practitioner articles on alternative investments with thousands of downloads at SSRN, presented at over a hundred industry conferences and has coauthored a book, Active Equity Management. Mr. Jain has multiple degrees in engineering, management, public administration and policy and is a graduate of Massachusetts Institute of Technology and Harvard University. He is a recipient of the Alfred Sloan Fellowship and subsequently was a Fellow of Public Policy and Management at the Harvard Kennedy School of Government for a year. He holds Series 7 and 66 securities licenses.

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