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

2019 ◽  
Vol 9 (1) ◽  
pp. 17 ◽  
Author(s):  
Hadi Sarvari ◽  
Alireza Valipour ◽  
Nordin Yahya ◽  
Norhazilan MD Noor ◽  
Michael Beer ◽  
...  
Keyword(s):  
Risk Management ◽  
Construction Industry ◽  
Risk Identification ◽  
Public Private Partnership ◽  
Risk Allocation ◽  
Public And Private ◽  
Private Partnership ◽  
Identification Process ◽  
Survey Results ◽  
High Level

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.

scholarly journals RISK MANAGEMENT PRACTICE IN CHINA'S PUBLIC-PRIVATE PARTNERSHIP PROJECTS

2012 ◽  
Vol 18 (5) ◽  
pp. 675-684 ◽  
Author(s):  
Yongjian Ke ◽  
ShouQing Wang ◽  
Albert P. C. Chan
Keyword(s):  
Risk Management ◽  
Quantitative Methods ◽  
Management Practice ◽  
Risk Identification ◽  
Public Private Partnership ◽  
Assessment Tools ◽  
Dominant Factor ◽  
Private Partnership ◽  
Management Culture ◽  
Empirical Survey

Project risks were not properly managed in the many past Public-Private Partnership (PPP) projects in China. Although numerous research studies have been conducted on risk management in China's PPP projects, the realization of risk management in China's construction industry especially in PPP projects with high risk exposure and complicated contract structure has hitherto not been well studied. This paper therefore attempted to examine the current use of risk management in China's PPP projects by an empirical survey. The results indicated that the use of risk management was inadequate; qualitative risk analysis methods were preferred to quantitative and semi-quantitative methods; risk management usage in the execution was found to be much higher than in the planning, conceptual or termination stage; interviewees were unfamiliar with most of the risk identification and assessment tools. All above could be partly due to the project nature, but more fundamentally due to the local industrial culture. The absence of risk management culture was found to be the dominant factor which limited the implementation of risk management in practice. Recommendations to alleviate the difficulties of risk management were thereafter provided in this paper.

scholarly journals Factors determining the success of public private partnership projects in Nigeria

2016 ◽  
Vol 16 (2) ◽  
pp. 42-55 ◽  
Author(s):  
Afeez Olalekan Sanni
Keyword(s):  
Policy Development ◽  
Success Factors ◽  
Good Governance ◽  
Implementation Process ◽  
Public Private Partnership ◽  
Political Support ◽  
Risk Allocation ◽  
Public And Private ◽  
Private Partnership ◽  
The Government

The implementation of public private partnership (PPP) procurement method is expected to help governments in the development of infrastructures and provides an opportunity for the reduction in the governments’ debt profiles. This method has been adopted in Nigeria for more than a decade and with these years of implementation, few infrastructural projects have been developed using this method while some have been unsuccessful. This study aims to examine the PPP projects implementation in Nigeria and identify the most critical factors that could determine the success of such projects. A total of 184 questionnaires were received from public and private sectors’ participants in the implementation of PPP projects. An exploratory factor analysis identified seven critical success factors as projects feedback, leadership focus, risk allocation and economic policy, good governance and political support, short construction period, favourable socio-economic factors, and delivering publicly needed service. This study shows that more developmental projects could be delivered through PPP if the government could focus on these main factors in the implementation process. The result will influence policy development towards PPP and guide the partners in the development of PPP projects. 

scholarly journals PRINSIP PROPORSIONALITAS DAN GOVERNANCE TERHADAP ALOKASI DAN TRANSFER RISIKO DALAM SKEMA KERJASAMA PUBLIC-PRIVATE PARTNERSHIP (PPP)

Yuridika ◽  
2017 ◽  
Vol 32 (3) ◽  
pp. 541
Author(s):  
Yuniarti Yuniarti ◽  
Fifi Junita
Keyword(s):  
Risk Sharing ◽  
Public Private Partnership ◽  
Government Support ◽  
Risk Allocation ◽  
Infrastructure Development ◽  
Transfer Scheme ◽  
Private Partnership ◽  
Force Majeure ◽  
The Government ◽  
High Level

The high level of Foreign Direct Investment (FDI) is also supported by the availability of infrastructure to the remote area where the investment will be implemented. However, with limited funds from both APBN and APBD, infrastructure development can not be fully done by the government. Therefore, the government will cooperate with the investor (private) in the implementation of infrastructure development known as public private partnership. The main problem in implementing PPP is the allocation of risk to PPP projects. The different bargaining positions between the government and the private sector resulted in the fact that most of them impose risks on private parties (private). Implementation of PPP is closely related to the emergence of various risks including and not limited to regulatory risks, force majeure, etc. If there is no risk allocation arrangement proportionally based on governance principles, it weakens the pattern of PPP cooperation in Indonesia. PPP as one form of risk sharing in infrastructure investment should not release the role and government support to private parties / investors. Even in practice, PPP implementation in Indonesia only relies on BOT (Build Operate and Transfer) scheme which is expected to minimize government support in project implementation. This will ultimately lead to project failure.

scholarly journals Critical success factors of public-private partnership from 2000 to 2019: A literature review

2021 ◽  
Vol 8 (6) ◽  
pp. 531-540
Author(s):  
Lydia Natalia ◽  
Nanny Dewi Tanzil ◽  
Prima Yusi Sari
Keyword(s):  
Critical Success Factors ◽  
Success Factors ◽  
Public Private Partnership ◽  
Risk Allocation ◽  
Infrastructure Development ◽  
Public And Private ◽  
Private Partnership ◽  
The Public ◽  
Critical Success ◽  
Legal Frameworks

Public-Private Partnership (PPP) is one of the schemes that have inspired many countries in infrastructure development. One of the most discussed PPP topics by researchers is the concept of Critical Success Factors (CSF). Therefore, this study examines CSF publications for PPP projects from selected journal sites from 2000-2019. The results showed that research on CSF in PPP began to increase in 2012. The most identified CSFs were appropriate risk allocation and sharing, competitive and transparent procurement processes, favorable and efficient legal frameworks, commitment and responsibility of the public and private sectors, and a robust and reliable private consortium. Furthermore, it was also found that most countries that were the objects of research on PPP CSF were China, followed by Hong Kong and Australia. The results also show that the dominant research focuses on multi-sector types of infrastructure where CSF can be applied to all infrastructure sectors. The findings obtained in this study can provide an overview of CSFs for projects with PPP schemes in the future. Besides, the identified CSFs can be applied to any PPP infrastructure sector. They can assist stakeholders in increasing the likelihood of PPP project success and can be adopted for further research

scholarly journals Understanding the Decisive Causes of PPP Project Disputes in China

Buildings ◽  
2021 ◽  
Vol 11 (12) ◽  
pp. 646
Author(s):  
Xiaoxiao Zheng ◽  
Yisheng Liu ◽  
Ruijiao Sun ◽  
Jinzhao Tian ◽  
Qi Yu
Keyword(s):  
Decision Making ◽  
Public Private Partnership ◽  
Risk Allocation ◽  
Relative Importance ◽  
Public And Private ◽  
Private Partnership ◽  
The Public ◽  
Holistic Understanding ◽  
Strategic Measures ◽  
Potential Sources

Disputes are inevitable in public-private partnership (PPP) projects and generate great losses of time and money in practice. If an in-depth understanding of dispute sources can be obtained beforehand, the process of PPP may become more smooth. This paper aims to identify and assess the causes of PPP disputes between the public and private sectors. First, 15 causes are explored based on the PPP litigation cases from China Judgments Online. Second, the Decision-Making Trial and Evaluation Laboratory (DEMATEL) method is utilized to provide a holistic understanding of the relative importance and define the cause-effect categories among PPP dispute sources. The results demonstrate that the top three decisive causes of PPP disputes are the repudiation of contracts (result category), lack of expertise and experience (reason category), and unreasonable risk allocation (result category). Further, dispute avoiding strategies are proposed to minimize or completely avoid the occurrence of PPP disputes. The outputs are expected to add meaningful insights to potential sources of dispute and dispute prevention mechanisms in PPPs. To some extent, the investors can develop strategic measures through the findings before entering into PPP markets.

scholarly journals Key risks in construction projects in Italy: contractors’ perspective

2017 ◽  
Vol 24 (3) ◽  
pp. 451-462 ◽  
Author(s):  
Ali Rostami ◽  
Chike F. Oduoza
Keyword(s):  
Risk Management ◽  
Construction Industry ◽  
Construction Projects ◽  
Cultural Influences ◽  
Risk Identification ◽  
Structured Interviews ◽  
Content Type ◽  
Management Framework ◽  
Identification Process ◽  
Risk Management Framework

Purpose Risks play an important role in the success of construction projects. Failure in identification and assessment of risks can lead to inadequacy in the process of managing risks, which in turn can critically affect the projects’ resources. A formal risk management is rarely practised in construction projects due to the lack of contractors’ awareness of key risks. The purpose of this paper is to focus on the investigation of risk factors in construction projects in Italy from contractors’ perspective. Design/methodology/approach Semi-structured interviews were conducted to collect data, based on which a total of ten key risks were ascertained. The identified risks were compared with the findings of the surveys conducted in the Australian and Chinese construction industry to address the unique risks associated with construction projects in Italy. Findings The key risks included delays in payments, client variations, design variations, inaccurate cost estimates, and tight project schedules. The comparison between those three countries specified the delays in payments and project funding problems as the most critical factors that are related to cultural influences and behaviour of clients. The findings assist contractors in the risk identification process, and can be applied to the development of a risk management framework for construction projects. Research limitations/implications The findings of this study cannot be generalised statistically for the whole of Italy as it was constrained geographically, with respondents drawn only from a self-selection sample of construction projects in the Veneto region of Northern Italy. The findings represent a snapshot of the key potential internal and external risks from the perspective of contractors. Originality/value The results of the study specified the key risks of construction projects from the perspective of contractors which can contribute to risk management for construction projects.

RISK MANAGEMENT IN PUBLIC-PRIVATE PARTNERSHIP AND OTHER MAJOR INFRASTRUCTURE PROJECTS

EDPACS ◽  
2021 ◽  
Vol 63 (5) ◽  
pp. 6-19
Author(s):  
Alex Sidorenko ◽  
Vladimir Kilinkarov ◽  
Alexey Belkov
Keyword(s):  
Risk Management ◽  
Public Private Partnership ◽  
Infrastructure Projects ◽  
Private Partnership

scholarly journals PROACTIVE CONTRACTING IN FINNISH PPP PROJECTS

2009 ◽  
Vol 13 (3) ◽  
pp. 219-228 ◽  
Author(s):  
Antti Tieva ◽  
Juha-Matti Junnonen
Keyword(s):  
Risk Management ◽  
Public Sector ◽  
Private Sector ◽  
Contract Law ◽  
Public Private Partnership ◽  
Private Partnership ◽  
Contractual Arrangements ◽  
Main Target

Public‐private‐partnership projects are long term, complex and very challenging contractual arrangements and relationships. They bring new roles for public sector and also for private sector in terms of construction and services. This paper will go through some features of the Finnish PPPs. Proactive law focuses in practical views as regards contract law and contractual issues. The main target is to prevent problems instead of confronting them. This paper will clarify what proactive law is about in terms of contract law and contracting especially in PPPs. For instance, 20–40 years’ partnership relation with PPPs brings up also dozens of different risks into the picture. This paper will discuss the risks and risk management in terms of proactive law and after that, focus on PPPs in Finland. Santruka Viešojo ir privataus sektoriu partnerystes (VPP) projektai ‐ tai ilgalaikiai, sude tin gi ir itin daug pastangu reikalaujantys sutartiniai susitarimai ir santykiai. Ne tik viešajame, bet ir privačiajame sektoriuje jie sukuria naujus, su statyba ir paslaugomis susijusius, vaidmenis. Šiame darbe apžvelgiami kai kurie Suomijos VPP bruožai. Iniciatyvi teise glaudžiai susijusi su prak ti nemis pažiūromis, sutarčiu teise ir pan. Pagrindinis tikslas ‐ išvengti problemu užuot jas sprendus. Šiame darbe paaiškinama iniciatyvios teises esme sudarant sutartis, ypač VPP. Pavyzdžiui, kai VPP trunka 20–40 metu, susiduriama su daugybe ivairiu rizikos rūšiu. Todel straipsnyje pirmiausia aptariamos rizikos rūšys ir rizikos valdymo būdai taikant iniciatyvia teise, o po to ‐ Suomijos VPP.

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