Developing weights for PPP performance indicators in emerging countries: An application of analytical hierarchy process (AHP)

While the use of PPP options increases over the last two decades in the developing countries, their contested performances are recorded. Conventional performance measurement approaches (e.g. Public Sector Comparator (PSC) analysis, best practice approaches and unweighted performance indicators) are inadequate to reveal true performances of PPPs. An objective assessment can provide better understanding of the actual performances, especially in developing countries. In particular, against the backdrop of unweighted performance indicators, this research aims to establish weights for performance indicators responsible for generating different results for the projects with differing characteristics and operating context in the developing countries. Applying Analytical Hierarchy Process (AHP) approach, weights for forty-one performance indicators have been developed. A different set of indicators (unlike cost, time and quality) are found dominant in Bangladesh. This model of forty-one weighted performance indicators and differing top ranked indicators represent major contributions to the literature on PPP performance indicator system in the developing countries. An application of this model to derive performance scores for individual PPPs might be an interesting forthcoming research agenda. Future research could also usefully focus on testing this model in different countries.