MULTISTAGE RISKS PRIORITIZATION AND ALLOCATION TO VARIOUS EXECUTION MODES OF PUBLIC-PRIVATE PARTNERSHIP (PPP) INFRASTRUCTURE PROJECTS BY USING AHP

Abstract

PPP involves long-term contractual engagements between private and public partners. The success of PPP infrastructure projects relies on comprehensive risk assessment, prioritization and equitable allocation. Limited literature is available on multistage risk prioritization and allocation in their relevant PPP execution modes. This research aims to fill the gap using qualitative and quantitative analyses for multi-stage risk ranking, prioritization and equitable allocation in respective execution modes of PPP infrastructure projects. The study assists in addressing uncertainties and enhancing the decision-making capabilities including effective multistage risk management before selecting suitable PPP execution modes. Categorized multistage risks have been identified for various PPP execution modes through an extensive literature review. Questionnaires and interviews were conducted for data collection and subsequent analyses using the Analytic Hierarchy Process (AHP) and NVivo to develop pairwise risk comparisons and hierarchy charts, respectively. The NVivo results highlight that risk preference varies in different execution modes and also gives overall preferred risks ranking like R8, R42, R50, R43, R37 & R22 etc. from the public perspective. However, AHP results give multistage prioritized risks ranking like  R31, R27, R29, R4, R30, R33 & R2 etc. from a general stakeholders’ perspective. Multistage risk categorization, prioritization and allocation in the respective PPP execution modes is a novel approach. The availability of limited PPP experts related to various execution modes was managed by categorizing PPP execution modes. Looking ahead, future researchers can explore and identify the extent of risk sharing among the various stakeholders to figure out this research gap.