6. Concluding remarks
A typical PPP arrangement is exposed to a plethora of risks. Thus, it is of paramount importance to carefully identify and allocate all project-associated risks. This paper addressed risk criticality and allocation in the context of PPP water supply development projects in Indonesia. Out of the identified 39 risk factors, the top three ranked factors according to the industry’s survey were: non-availability of raw water, entry of new competitor, and construction cost escalation from the regulator’s perspective; and, tariff-setting uncertainty, breach of contract by government, and non-availability of raw water from the operator’s perspective.