Risk Perception Gaps Between Construction Investors and Financial Investors of International Public–Private Partnership (PPP) Projects

Chan Young Park, Wooyong Jung and Seung H. Han
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Chan Young Park: Department of Civil and Environmental Engineering, Yonsei University, Seoul 03722, Korea
Wooyong Jung: Department of Nuclear Power Plant Engineering, KEPCO International Nuclear Graduate School, Ulsan 45014, Korea
Seung H. Han: Department of Civil and Environmental Engineering, Yonsei University, Seoul 03722, Korea

Sustainability, 2020, vol. 12, issue 21, 1-20

Abstract: Many international public–private partnership projects have suffered from frequent project pending status or failure because of dissimilar interests among stakeholders over projects’ long development period. Thus, this study compares the perception gaps of 27 risks between Korean construction investors and Korean financial investors depending on different development phases of international public–private partnership projects. In the project selection phase, construction investors and financial investors show few risk perception gaps. However, in the bid and proposal phase, they perceive many risks differently: construction investors tend to perceive the construction risk and financial risk as more important, whereas financial investors perceive stakeholder risk and country risk as more significant. This study also discusses the causes of risk perception gaps from three perspectives: (1) time-dependent risk; (2) risk exposure period; (3) risk transfer and responsibility. These findings will be helpful in recognizing the dynamic risk perception gaps between two leading investors for the sustainable development and investment of international PPP projects.

Keywords: public–private partnership project; project development; risk perception gap; construction investor; financial investor (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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