Perhaps the most significant feature of PPPs concerns the allocation of risk. The delivery andoperation of large infrastructure projects bring numerous risks. It is the identification and allocationof these risks that are at the center of PPP contracts. The risks are specific to the nature of theinfrastructure asset, the type of PPP contract (such as design-build-finance-operate-transfer andoperations and maintenance only, involving no private financing of any capital investment). Theunderlying principle for the allocation of risks is that they should be borne by the party best placed tomanage them. In the context of a PPP, this means deciding which party to the PPP contract will bearthe cost (or reap the benefit) of a change in project outcomes.