Risk Allocation Inefficiencies in Chinese PPP Water Projects
Publication: Journal of Construction Engineering and Management
Volume 144, Issue 4
Abstract
Risk management is a key concern in public-private partnership (PPP) projects and the efficient allocation of risk remains problematic. Previous studies on PPP practices have documented the prevalence of inefficiency in risk allocation. Nevertheless, the nature of PPP risk misallocation has not been quantitatively described and verified. This study examines risk allocation in the Chinese water sector as it supports the highest number of PPP projects. Based on the expertise of 32 senior practitioners, statistical analysis is used to contrast where risks ought to lie in order to maximize risk mitigation efficiency with where such risks actually lie. The results confirm that current risk allocation practices are far from ideal, with the implication that current practices play a significant role in project failure. Details within the data provide insight into how practitioners should modify current risk allocation practices to better achieve risk management optimization. The lesson learned from this study can be transferred to projects in other emerging PPP markets.
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Data Availability Statement
Data generated or analyzed during the study are available from the corresponding author by request. Information about the Journal’s data sharing policy can be found here: http://ascelibrary.org/doi/10.1061/%28ASCE%29CO.1943-7862.0001263.
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Information & Authors
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Published In
Journal of Construction Engineering and Management
Volume 144 • Issue 4 • April 2018
Copyright
©2018 American Society of Civil Engineers.
History
Received: May 7, 2017
Accepted: Oct 10, 2017
Published online: Feb 2, 2018
Published in print: Apr 1, 2018
Discussion open until: Jul 2, 2018
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