Risk perception analysis of BOT road project participants in India

A. V. Thomas, Satyanarayana Kalidindi and K. Ananthanarayanan

Construction Management and Economics, 2003, vol. 21, issue 4, 393-407

Abstract: Despite massive investment opportunities and the establishment of a framework for private sector participation in highway infrastructure development programmes in India, private investment (including foreign direct investment) in this sector is not up to the expected level. A high degree of risk exposure, disagreement on many risk issues among major stakeholders, and the absence of adequate government guarantees have been identified as some of the major reasons for this lukewarm response. This paper discusses the outcome of a risk perception analysis carried out to evaluate the risk criticality, risk management capability, risk allocation/sharing preference, and factors influencing risk acceptance of major stakeholders. A survey was conducted among senior project participants such as government officials, promoters, lenders and consultants of Indian BOT road projects. Eight types of risks have been identified as very critical in the Indian road sector under BOT set up with traffic revenue risk being the most critical. Though there is fair agreement among survey respondents with respect to the risk management capabilities of stakeholders, their preferences of allocations are divergent. The significant factors influencing the risk acceptance of each stakeholder are identified through regression analysis. The study reveals that the factors and their relative influence on the risk acceptance of stakeholders are considerably different.

Keywords: Highway Infrastructure; Bot Projects; Risk Perception; Risk Criticality; Risk Allocation; Risk Acceptance; Regression; Traffic Revenue Risk; India (search for similar items in EconPapers)
Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/0144619032000064127 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:conmgt:v:21:y:2003:i:4:p:393-407

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RCME20

DOI: 10.1080/0144619032000064127

Access Statistics for this article

Construction Management and Economics is currently edited by Will Hughes

More articles in Construction Management and Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().