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CIB Conferences

Abstract

Disasters, whether natural or man-made, often result in cascading secondary impacts that exacerbate direct damages and losses. While governments at different levels bear most of the response and recovery costs, the increasing frequency and severity of disasters have stretched public budgets, suggesting the need for collaboration with the private sector. However, innovative risk transfer instruments involving private capital markets have emerged globally to help governments and communities better manage expenditures related to secondary hazards. Therefore, this study reviews public-private partnership (PPP) models to identify those that can help transfer risks associated with secondary hazards. Through a systematic review of literature sourced from academic databases (Scopus, Science Direct, and Google Scholar), reports, and case studies, the study identifies and narratively analyses different PPP models used internationally to transfer multi-hazard and indirect risks out of publicly funded reconstruction programs. The study found that some PPP models for risk transfer, including parametric insurance, index-based insurance, catastrophe bonds, resilience bonds, and risk-sharing agreements, are effective mechanisms for enhancing resilience, promoting financial stability, and mitigating the socio-economic impacts of disasters. The findings of the study will contribute to the existing body of knowledge by offering valuable implications for policymakers, practitioners, and researchers seeking to address the complexities of disaster risk management through collaborative approaches, as well as to identify key considerations and potential solutions related to risk transfers in PPPs. The study concludes that effective PPPs need suitable model selection, strong stakeholder engagement, clear communication, and thorough risk management.

The paper will be presented:

Online

Primary U.N. Sustainable Development Goals (SDG)

Sustainable Cities and Communities - - Make cities and human settlements inclusive, safe, resilient and sustainable

Secondary U.N. Sustainable Development Goals (SDG)

Industry, Innovation and Infrastructure - - Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

Primary CIB Task Group OR Working commission

W120 – Disasters and the Built Environment

Secondary CIB Task Group OR Working commission

W122 – Public Private Partnership

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