Public private partnerships (PPPs) have gained widespread adoption as an innovative way of procuring public infrastructure projects over the last two decades. Risk identification, assessment, and allocation have received considerable attention from researchers due to the risk heavy nature of PPP projects. Adoption of PPPs has triggered a sudden increase in research interest in the area in recent years. This study attempts to provide an updated systematic review of literature related to risks in PPPs using a PRISMA flowchart. The results of the study offer some valuable insights into the future and current state of research. The study found that the focus of research on PPPs has shifted from an overall risk identification and assessment approach to individual risk analysis. Moreover, this research trend is on the rise in developing countries, and that quantitative methods for risk management in PPP research and qualitative methods in practice are preferred. In developed economies, due to negative public sentiments, transparency concerns, and arguments of value for money not being achieved, PPPs are becoming less popular. For these reasons a shift to availability-based payment mechanisms such as in Design-Build-Finance-Maintain (DBFM) from traditional revenue-based mechanisms as in Build-Operate-Transfer (BOT) has been observed. These shifts in research trends and practice offer researchers future opportunities to investigate these relatively newer approaches.

The utilization of Public Private Partnerships (PPPs) has become widely prevalent as an innovative approach for procuring public infrastructure projects. Risk transfer/allocation is one of the main reasons for this widespread adoption and considered a critical success factor for a PPP. Given the importance of equitable risk allocation, this study identified and analysed 10 key risk allocation criteria. Experts with experience in PPP projects in New Zealand were surveyed through an empirical questionnaire to obtain industry-wide data. Mean score analysis and factor analysis were then used to analyse the collected data. In order to ensure the validity of the analysis results, appropriate statistical tests such as Cronbach’s Alpha, Kaiser-Meyer-Olkin (KMO) statistic and Bartlett’s test of Sphericity were conducted. Result indicate that the most important criteria for risk allocation are “risk foresight”, “minimize risk loss” and “response to risk”. Furthermore, factor analysis showed that the identified RAC can be classified into three component groups namely “risk management expertise”, “core risk management capability” and “risk management strategy”. This study aims to provide PPP stakeholders with useful insights into the most effective measures for achieving equitable risk allocation. To achieve this, the study recommends to consider the risk management capabilities of both the public and private sectors in light of the identified RACs/groupings. The results of the study are expected to assist PPP stakeholders in developing strategies that can enhance risk management and achieve a fair distribution of risks.