Critical Risks Identification of Public Private Partnerships in China and the Analysis on Questionnaire Survey

Abstract

Public private partnerships (PPPs) have been applied for twenty years in China. Many problems of PPP projects in China are related to unsuccessful risk management. This paper addresses the process of risk identification for the PPP projects in China, which is the first stage of the risk management process and is important for the project objectives to be achieved. The aim of this paper is to identify the critical risks during the process of PPP projects in China. The method of work breakdown structure - risk breakdown structure is used to identify the detailed and thorough risks in PPPs. In order to obtain the critical risks, a structure questionnaire survey was conducted during the moths of March 2007 and August 2007 in China, which find 20 critical risks of PPP projects in China. On the basis of the survey results, five best-value risk management objectives are established by the statistical way of factor analysis, which will be helpful to improve the efficiency and effectiveness of risk management to achieve the best value of PPP projects in China.