Navigating the Risks of Public-Private Partnerships: Challenges and Mitigation Strategies

Abstract

This study explores the obstacles and risks that Public-Private Partnerships (PPPs) encounter in carrying out economic development initiatives, across Romanian nations. The study addresses financial, regulatory, risk management and social-environmental factors that influence the success of PPPs in the current economic environment. The research has as main objective to identify and analyze the major risks associated with PPPs in Romanian national governance systems. Drawing from a comprehensive review of existing literature, the study highlights a literature review regarding the most common issues, as limited sources of financing, high upfront costs, technological and cash-flow risks, uncertain returns and weak regulatory frameworks. By integrating theoretical frameworks, the research explores the corelation between these challenges and the factors that slow down the effectiveness of PPPs in the nowaday economic trends. The findings emphasize the need for enhanced government capacity, tighter regulatory enforcement, and improved risk management strategies. Policy suggestions are offered to bridge the gaps and enhance the overall efficiency of PPPs in fostering sustainable economic and social development. Finally, the study outlines directions for future research to further explore the evolving dynamics of PPPs in sustainable economic growth and their potential role in achieving sustainable development goals. JEL: K23; L33; L74; O18; UDC: [334.722.26:005.334](4+498)