Abstract:
In Pakistan, lack of knowledge in non-traditional procurement method i.e. Public Private Partnership (PPP) and risky procurement of PPP method, has led to lack of interest of private sector in PPP. Successful completion of PPP projects requires effectively management of risk related to PPP projects. Adequate risk assessment is not only helpful in efficient risk allocation and mitigation, but it also ensures the success of the project. This research aims to determine the risk of a particular critical risk group (CRG) and overall risk level of PPP road infrastructure projects in Pakistan by developing risk assessment model for PPP road projects using fuzzy synthetic evaluation technique.
Two-round Delphi survey was conducted among consultant, contactor and academia personnel to rank the identified forty-three risks factor clustered into five risk groups, and fifteen constraints. Risk factors and constraints having normalized value of 0.5 or above were considered as critical for PPP road projects. Fuzzy Synthetics Evaluation technique was used to develop risk assessment for twenty critical risk factors. The study results show that risk level of the Pakistan‘s PPP road project is medium to high. Therefore, it can be considered that investment in Pakistan's PPP road project may be considered risky. Delphi survey respondents perceived that ―Managerial risk‖ is most critical risk group (CRG) having a Risk Impact (RI) of 3.48. Political Risk group is placed second with RI value of 3.47; ―Organizational Risk Group‖ being third with RI value of 3.43; ―Economical Risk Group‖ as the fourth CRG with RI of 3.34; and ―Social/Natural Risk Group‖ is ranked as fifth with RI value of 3.33. The results concluded that, in Pakistan, the lack of managerial skill adversely affects the execution of PPP in road infrastructure projects. Developed risk assessment model is
