Risk Severity Matrix for Sustainable Public-Private Partnership Projects in Developing Countries

Shabir Hussain Khahro, Tauha Hussain Ali, Shafiqul Hassan, Noor Yasmin Zainun, Yasir Javed and Shahbaz Aziz Memon
Additional contact information
Shabir Hussain Khahro: Department of Engineering Management, Prince Sultan University, Riyadh 11586, Saudi Arabia
Tauha Hussain Ali: Department of Civil Engineering, Mehran University of Engineering & Technology, Sindh 76062, Pakistan
Shafiqul Hassan: College of Law, Prince Sultan University, Riyadh 11586, Saudi Arabia
Noor Yasmin Zainun: Faculty of Civil Engineering & Built Environment, Jamilus Research Center, Universiti Tun Hussein Onn Malaysia, Parit Raja 86400, Malaysia
Yasir Javed: Department of Computer System, College of Information Technology, Prince Sultan University, Riyadh 11586, Saudi Arabia
Shahbaz Aziz Memon: Department of Civil Engineering, Mehran University of Engineering & Technology, Sindh 76062, Pakistan

Sustainability, 2021, vol. 13, issue 6, 1-15

Abstract: The concept of a Public-Private Partnership (PPP) is not new for developing countries, although many initiatives are being contemplated for potential implementation. This paper evaluates the crucial success factor for the effective execution of PPP projects and it also investigates the appropriate distribution of the risks involved in PPP projects. Quartile analysis of features has been made after a detailed literature review for risk identification. The risk severity analysis is done using a quartile assessment. The data is collected from various contractors working on PPP projects in Pakistan. The comparative analysis has been conducted using available research work on PPP in developing countries. A risk severity rank model is created using 47 key risks in PPP projects for developing countries. Finally, the top risks identified by this research are compared with the previous studies conducted in China, India and Egypt. It is concluded that inflation, revenue risk from end-user, foreign exchange fluctuation, political situation, law and order, and corruption are the major risks in developing countries for better management of PPP projects. Most of the PPP projects are public-oriented. The society of any city is directly affected by most PPP projects. This paper presents the identified key risks of PPP projects in developing countries which are mostly financial and public-oriented. This work will support the PPP concept significance, meeting United Nations Sustainable Development Goal (SDG) 8 and 11. Recent countries’ political and economic circumstances and sustainability have transformed PPP ventures into a successful way to support the governments to develop roads, energy and facilities through private partners’ financial and technological capacities. Although PPP is used worldwide, its effective utilization in developing countries is still lacking. This paper is an enhancement to its successful use of the PPP domain for developing countries.

Keywords: employment growth; gross domestic product; infrastructure; public-private partnership; risk; sustainable economy (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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