The success of Public Private Partnership (PPP) for
water supply investment is inseparable from the capability of risk management
of the parties within the project. This study investigates the risk management
capability of Indonesian local public sector organizations that are potentially
involved in PPP schemes for water supply. A risk management maturity model based
assessment tool probing the culture, process, experience, application and
partnership aspects is used in the survey. The model describes risk management
capability in four levels (adhoc, initial, competent, excellent). The survey
shows that their risk management capability is still in-average at the initial
stage (level 2), meaning that the adopted risk management postures are mostly
supported only by unstructured, ad-hoc and non-formal processes. The result of
this study can help decision makers in choosing appropriate risk management
methods and tools to be used by the local public
authorities for managing risks in PPP schemes.
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