Bundling and Unbundling in Public–Private Partnerships: Implications for Risk Sharing in Urban Transport Projects

Public–private partnership (PPP) projects may be organized in a variety of ways, depending on the level of integration of the so‐called Special Purpose Vehicle. Based on the analyses of four major PPP light rail projects in Spain, this article outlines two fundamentally different models of organizing the Special Purpose Vehicle in PPP projects; moreover, the article examines the central principles of these two different models of organizing the private sector Special Purpose Vehicle and their implications for risk sharing and project management in large‐scale infrastructure PPP projects.