Critical risk attributes in public private partnership projects in India
- Vol.29(1), Jan-Mar
- Pune NICMAR 2014
- 109-124p.
Public Private Partnership (PPP) Infrastructure projects with long concession periods are exposed to uncertainties and need careful identification of risks. These identified risks are to be accounted during contracting to avoid the losses. A total of 50 risk attributes were identified through literature in this study. Questionnaire responses were collected from the contractors, consultants and government agencies (clients). Data collected was analyzed by principal component analysis using SPSS software. Results show that the risk attributes were reduced to 17 which could in turn be associated into 8 component factor groupings. Social acceptability , experience in PPP, market / competition, procedural delay, economical risk, construction delay and subletting risks were identified as critical factors in Indian PPP Projects. Preferences in risk allocation for critical risk attributes were investigated. Results show that some risk should be retained within private sector or shared with public sector. A risk response strategy has been discussed to help the different stakeholders of PPP projects, in mitigating these critical risks.