Approaches to Risk Identification in Public–Private Partnership Projects: Malaysian Private Partners’ Overview

Hadi Sarvari, Alireza Valipour, Nordin Yahya, Norhazilan MD Noor, Michael Beer and Nerija Banaitiene
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Hadi Sarvari: Department of Civil Engineering, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan 81595-39998, Iran
Alireza Valipour: Department of Civil Engineering, Shiraz Branch, Islamic Azad University, Shiraz 74731-71987, Iran
Nordin Yahya: Department of Structure and Materials, Faculty of Civil Engineering, Universiti Teknologi Malaysia, Johor 81310, Malaysia
Norhazilan MD Noor: Department of Structure and Materials, Faculty of Civil Engineering, Universiti Teknologi Malaysia, Johor 81310, Malaysia
Michael Beer: Institute for Risk and Reliability, Leibniz Universität Hannover, Callinstrasse 34, 30167 Hannover, Germany
Nerija Banaitiene: Faculty of Civil Engineering, Vilnius Gediminas Technical University, Saulėtekio al. 11, LT-10223 Vilnius, Lithuania

Administrative Sciences, 2019, vol. 9, issue 1, 1-18

Abstract: The complexity of public–private partnership (PPP) projects ensures that risks could emerge and spread in unpredictable ways if they are not well identified and managed. The emergence of PPP projects has brought major changes in the construction industry, the most notable being in procurement methods influencing risk allocation to private parties. Thus, it is crucial to have an effective risk management for public and private partners to eliminate or minimise risks. Formulating an effective risk management system is a crucial challenge faced by both of parties in order to minimise or optimise risks. The aim of this study was to investigate the process of risk identification of private partners in Malaysian PPP projects. Data were collected throughout a 2-month period using a survey with a sample of nine Malaysian companies engaged in PPP projects, and the survey results were analysed using mean scores. The findings indicate that due to a lack of knowledge and experience of Malaysian private partners in the risk identification process, a comprehensive database for risk identification is highly necessary for the private sector. Another issue emerging from the findings is that it may be reasonable to use a combination of risk identification tools for PPP projects with a high level of complexity. The findings of the present study can greatly assist public and private partners to select the most appropriate tools for risk identification at the early stages of PPP projects.

Keywords: risk identification; risk management; PPP; private partner; Malaysia (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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