Risk Allocation in Public-Private Partnerships and the Regulatory Asset Base Model
The two existing models for delivering and managing privately financed infrastructure are the public-private partnership (PPP) and the regulatory asset base (RAB). The PPP model is currently dominant, while the RAB model is rarely considered. This paper investigates under which conditions one approach is better suited than the other. The paper is part of a series of 19 papers and a synthesis report produced by the International Transport Forum’s Working Group on Private Investment in Transport Infrastructure.