Identifying Measures of Effective Risk Management for Public–Private Partnership Infrastructure Projects in Developing Countries

Khwaja Mateen Mazher (), Albert P. C. Chan, Rafiq M. Choudhry, Hafiz Zahoor, David J. Edwards, Ahmed M. Ghaithan, Awsan Mohammed and Mubashir Aziz
Additional contact information
Khwaja Mateen Mazher: Department of Construction Engineering and Management, King Fahd University of Petroleum and Minerals, Dhahran 31261, Saudi Arabia
Albert P. C. Chan: Department of Building and Real Estate, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong, China
Rafiq M. Choudhry: Construction Engineering and Management, Civil Engineering Department, College of Engineering, Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh 11432, Saudi Arabia
Hafiz Zahoor: College of Civil Engineering, National University of Sciences and Technology, Risalpur Campus, Nowshera 24080, Pakistan
David J. Edwards: School of Engineering and the Built Environment, Birmingham City University, Birmingham B4 7BD, UK
Ahmed M. Ghaithan: Department of Construction Engineering and Management, King Fahd University of Petroleum and Minerals, Dhahran 31261, Saudi Arabia
Awsan Mohammed: Department of Construction Engineering and Management, King Fahd University of Petroleum and Minerals, Dhahran 31261, Saudi Arabia
Mubashir Aziz: Department of Civil and Environmental Engineering, King Fahd University of Petroleum and Minerals, Dhahran 31261, Saudi Arabia

Sustainability, 2022, vol. 14, issue 21, 1-19

Abstract: The inadequate risk management of public–private partnership (PPP) projects is a principal cause of project distress or failure. This research seeks to identify and empirically validate measures of effective risk management (ERM) in the context of PPPs in a developing country, a subject that has received scant attention in the extant literature. The research is based on a comprehensive literature review, expert interviews and a questionnaire survey. Mean score ranking and factor analysis were employed to rank and group the identified measures, respectively. Tests were performed to determine the respondents’ agreement and establish the reliability and validity of the survey instrument. Analysis results indicate that all identified measures are important, are distributed over the entire project’s life cycle and exhibit a multi-organizational focus. The most significant measures focus on PPP-specific artifacts and procurement activities that are vital for ERM. Factor analysis established six critical underlying dimensions for the ERM of PPP projects. The extracted factors generally acknowledge the need for expert public- and private-sector project stakeholders with mature organizational structures, business processes and relevant experience to successfully handle and deliver PPP projects. Furthermore, a comprehensive PPP policy and sound legal and regulatory frameworks are essential for supporting the ERM of PPP projects. The findings will enable a better understanding of factors that influence the quality and outcomes of risk management efforts and promote sustainable infrastructure development via PPPs, where the success of a project strongly relies on positively managing a project’s risks in the economic and the social domains.

Keywords: public–private partnerships (PPP); effective risk management; construction project success; sustainable procurement (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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