Evaluation and ranking of risk factors in public–private partnership water supply projects in developing countries using fuzzy synthetic evaluation approach

Abstract To compensate for the lack of funds for investment in private sector and infrastructure projects, governments may propose public–private partnerships (PPPs) to be able to use share capital and establish the necessary infrastructure of the country. The current study was undertaken to identify and determine the risk factors in PPPs for water supply projects in Iran. After identifying the risk factors using failure mode and effect analysis (FMEA), the risk priority number of each was assessed. This identified the most critical risk factors, which were then categorized into experimental, legal, financial, and technological subcategories. The fuzzy synthetic evaluation (FSE) technique and FMEA method were then blended and the FSE technique was modified for measuring the overall risk level. The computational results show that the levels of risk were ranked as follows (highest to lowest): financial, experimental, technological and legal. The level of risk in the financial subcategory was 6.11, in the experimental was 6.05 and in the technological and legal was 5.94 and 5.83, respectively. The overall risk level in PPPs for Iranian water supply projects considering linguistic variables as the criteria was 5.98, which is high. This level of risk confirms the applicability and suitability of the model.

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Fuzzy Synthetic Evaluation of the Critical Success Factors for the Sustainability of Public Private Partnership Projects in China

Sustainability ◽

10.3390/su13052551 ◽

2021 ◽

Vol 13 (5) ◽

pp. 2551

Author(s):

Binchao Deng ◽

Dongjie Zhou ◽

Jiachen Zhao ◽

Yilin Yin ◽

Xiaoyu Li

Keyword(s):

Policy Development ◽

Critical Success Factors ◽

Success Factors ◽

Legal Framework ◽

Public Private Partnership ◽

Fuzzy Synthetic Evaluation ◽

Private Partnership ◽

Stakeholder Relationships ◽

Critical Success ◽

Synthetic Evaluation

Public Private Partnership (PPP) projects have attracted wide attention from academia and industry over the past 20 years, however, they have been plagued by certain factors. This study identified, classified, and evaluated the success factors that may affect PPP projects for achieving sustainability. First, a list of 32 critical success factors were categorized into 3 groups, then a questionnaire survey was conducted, with 108 responses received from experts, researchers, and PPP project managers in China. Second, using a fuzzy synthetic evaluation (FSE) method, stakeholder relationships (A1–A10), external environmental (B1–B8), and project management of a special purpose vehicle (C1–C14) collected data at three different factor group locations in PPP projects were used in this evaluation. The results obtained nine top factors: private sector financing capacity, government credit, government commitment or guarantee, completeness of legal framework, available financial markets, the feasibility study report and implementation, effectiveness of risk management, project investment, and cost control and revenue distribution. It was demonstrated that fuzzy synthetic evaluation techniques are quite appropriate techniques for PPP projects. The research findings should impact on policy development towards PPP and Private Finance Initiative (PFI) project governance.

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