Risk identification and assessment in PPP infrastructure projects using fuzzy Analytical Hierarchy Process and life-cycle methodology

Jie Lie, Patrick ZOU

Research output: Contribution to journalArticle

Abstract

To fulfil the increasing demands of the public,Public Private Partnership (PPP) has beenincreasingly used to procure infrastructureprojects, such as motor ways, bridges, tunnelsand railways. However, the risks involved inPPP projects are unique and dynamic due tolarge amount of investment and longconcession period. This paper aims to developa risk identification framework from theperspectives of project life cycle, and anassessment framework for risks associatedwith PPP project using fuzzy analyticalhierarchy process (AHP). First the paperreviews the current literature to identifycommon risks in PPP infrastructure projectsand classification methods used. The risksidentified from the literature were classifiedusing project life cycle perspectives. Followingthat, the paper presents the advantages offuzzy AHP. Furthermore, the paper provides aframework for assessment of risks in PPPprojects followed by an illustrative examplewhere the data was obtained from surveyquestionnaires. The paper concludes that risksassociated in PPP infrastructure projects areunique and therefore it is beneficial to classifythem from project life cycle perspectives, andthe proposed fuzzy AHP method is suitable forthe assessment of these risks.
Original languageEnglish
Pages (from-to)32-46
Number of pages15
JournalConstruction Economics and Building
Volume8
Issue number1
DOIs
Publication statusPublished - 2008
Externally publishedYes

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Life cycle
Public risks
Infrastructure projects
Risk assessment
Analytical hierarchy process
Methodology
Public-private partnerships
Risk identification
Project life cycle

Cite this

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abstract = "To fulfil the increasing demands of the public,Public Private Partnership (PPP) has beenincreasingly used to procure infrastructureprojects, such as motor ways, bridges, tunnelsand railways. However, the risks involved inPPP projects are unique and dynamic due tolarge amount of investment and longconcession period. This paper aims to developa risk identification framework from theperspectives of project life cycle, and anassessment framework for risks associatedwith PPP project using fuzzy analyticalhierarchy process (AHP). First the paperreviews the current literature to identifycommon risks in PPP infrastructure projectsand classification methods used. The risksidentified from the literature were classifiedusing project life cycle perspectives. Followingthat, the paper presents the advantages offuzzy AHP. Furthermore, the paper provides aframework for assessment of risks in PPPprojects followed by an illustrative examplewhere the data was obtained from surveyquestionnaires. The paper concludes that risksassociated in PPP infrastructure projects areunique and therefore it is beneficial to classifythem from project life cycle perspectives, andthe proposed fuzzy AHP method is suitable forthe assessment of these risks.",
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Risk identification and assessment in PPP infrastructure projects using fuzzy Analytical Hierarchy Process and life-cycle methodology. / Lie, Jie; ZOU, Patrick.

In: Construction Economics and Building, Vol. 8, No. 1, 2008, p. 32-46.

Research output: Contribution to journalArticle

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