Open AccessRisk Identification and Assessment in PPP Infrastructure Projects using Fuzzy Analytical Hierarchy Process and Life-Cycle Methodology
Author(s) -
Jie Li,
Patrick X.W. Zou
Publication year - 2012
Publication title -
construction economics and building
Language(s) - English
Resource type - Journals
ISSN - 2204-9029
DOI - 10.5130/ajceb.v8i1.2996
Subject(s) - analytic hierarchy process , public–private partnership , identification (biology) , fuzzy logic , risk analysis (engineering) , process (computing) , investment (military) , engineering , computer science , general partnership , business , operations research , finance , artificial intelligence , politics , law , political science , biology , operating system , botany
To fulfil the increasing demands of the public,Public Private Partnership (PPP) has been increasingly used to procure infrastructure projects, such as motor ways, bridges, tunnels and railways. However, the risks involved in PPP projects are unique and dynamic due to large amount of investment and long concession period. This paper aims to develop a risk identification framework from the perspectives of project life cycle, and an assessment framework for risks associated with PPP project using fuzzy analytical hierarchy process (AHP). First the paper reviews the current literature to identify common risks in PPP infrastructure projects and classification methods used. The risks identified from the literature were classified using project life cycle perspectives. Following that, the paper presents the advantages of fuzzy AHP. Furthermore, the paper provides a framework for assessment of risks in PPP projects followed by an illustrative example where the data was obtained from survey questionnaires. The paper concludes that risks associated in PPP infrastructure projects are unique and therefore it is beneficial to classify them from project life cycle perspectives, and the proposed fuzzy AHP method is suitable for the assessment of these risks