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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Shabir Hussain Khahro & Tauha Hussain Ali & Shafiqul Hassan & Noor Yasmin Zainun & Yasir Javed & Shahbaz Aziz Memon, 2021. "Risk Severity Matrix for Sustainable Public-Private Partnership Projects in Developing Countries," Sustainability, MDPI, vol. 13(6), pages 1-15, March.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:6:p:3292-:d:518678
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    References listed on IDEAS

    as
    1. Kumar, Lakshya & Jindal, Apurva & Velaga, Nagendra R., 2018. "Financial risk assessment and modelling of PPP based Indian highway infrastructure projects," Transport Policy, Elsevier, vol. 62(C), pages 2-11.
    2. Alireza Valipour & Hadi Sarvari & Jolanta Tamošaitiene, 2018. "Risk Assessment in PPP Projects by Applying Different MCDM Methods and Comparative Results Analysis," Administrative Sciences, MDPI, vol. 8(4), pages 1-17, December.
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    Cited by:

    1. Guoxian Cao & Chaoyang Guo & Hezhong Li, 2022. "Risk Analysis of Public–Private Partnership Waste-to-Energy Incineration Projects from the Perspective of Rural Revitalization," Sustainability, MDPI, vol. 14(13), pages 1-19, July.
    2. Xue Xu & Min Zhao & Xiaoya Li & Chao Song, 2022. "A Study on the Risk Assessment of Water Conservancy Scenic Spot PPP Projects," Sustainability, MDPI, vol. 14(24), pages 1-23, December.
    3. Dursun Balkan & Goknur Arzu Akyuz, 2023. "Logistics Sector Turnover: Forecasting for Turkey, EU27 and EA19 under Effects of COVID-19," Logistics, MDPI, vol. 7(2), pages 1-22, April.
    4. Eslam Mohammed Abdelkader & Tarek Zayed & Hassan El Fathali & Ghasan Alfalah & Abobakr Al-Sakkaf & Osama Moselhi, 2023. "An Integrated Multi-Criteria Decision Making Model for the Assessment of Public Private Partnerships in Transportation Projects," Mathematics, MDPI, vol. 11(16), pages 1-41, August.
    5. Yajing Zhang & Weijian Jin & Jingfeng Yuan, 2023. "Policy Perspective on Governmental Implicit Debt Risks of Urban Rail Transit PPP Projects in China: A Grounded Theory Approach," Sustainability, MDPI, vol. 15(19), pages 1-16, September.

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