Abstract
To meet the growing demand for public facilities and services, many developing countries, including China, have adopted the concept of public–private partnership (PPP). However, there are many risks in PPP projects. Furthermore, these risks affect each other, which may lead to project failure. However, the existing research on the PPP risk relationship has not gone into sufficient detail. Therefore, in order to fill this literature gap, this study proposes a procedural method to analyze the correlation between PPP risks. Firstly, this study, identifies the risks of construction PPP projects in China by combining the literature review with a case study and interviews. Then, fuzzy interpretative structural modeling (FISM) is used to reflect the relationships between these risks and reveal the failure mechanisms of PPP projects. In addition, based on matrix impact cross-reference multiplication applied to a classification (MICMAC) analysis, the risk is divided into four clusters, according to the driving and dependence power, to show the relationship level of the risk. Finally, the paper compares and discusses the research results with other studies and puts forward some suggestions on PPP risks. The FISM-MICMAC method adopted in this study considers the fuzzy of the PPP risk relationship and improves upon previous studies. In addition, the method of FISM-MICMAC can provide a new risk assessment tool for risk management strategies in the field of construction engineering and management.
Highlights
A private partnership (PPP) refers to a partnership between the government and private investors to provide public infrastructure projects, public goods, and services [1,2]
PPP projects are characterized by large scale investments, long contract concession periods, and complex technologies, which give rise to many potential risk factors in the implementation process, which could lead to the failure of PPP projects [8,9,10]
This study identifies the key risk factors of PPP projects by literature survey, case study, and interviews
Summary
A PPP (public–private partnership) refers to a partnership between the government and private investors to provide public infrastructure projects, public goods, and services [1,2]. PPP originated in the UK [3] As it can deliver high-quality results within the concession period and budget [4], PPP has attracted extensive attention from the public sector and has been adopted in a number of countries [5,6,7]. On 16 November 2017, China’s Ministry of Finance announced the “Notice of standardizing project library in PPP integrated information platform” (hereafter referred to as “No 92”) [14], designed to correct the current problem of deviation and variation in the course of PPP project implementation, further improve the quality of the project library storage, as well as project effectiveness and information given to the public, and improved social supervision. Since the release of No 92, from 16 November 2017 to 16 August 2019, the number of "withdrawal projects" reduced by the PPP project library of the Ministry of Finance has reached 6955, and there are 12,561 existing PPP projects in the PPP project library [15]
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