Risk assessment in public-private partnership infrastructure projects: Empirical comparison between Ghana and Hong Kong
Abstract
Purpose
The purpose of this paper is to empirically compare the risk factors in public-private partnership (PPP) projects in developing and developed countries, represented by Ghana and Hong Kong, respectively.
Design/methodology/approach
A structured questionnaire survey was conducted with PPP practitioners in Ghana and Hong Kong. In total, 103 valid responses were received for analysis. Kendall’s coefficient of concordance and mean ranking were used for data analysis.
Findings
The results show that respondents from Ghana ranked country risk factors higher, whereas their Hong Kong counterparts ranked project-specific risks higher. The top five significant risks in Ghana are corruption, inflation rate fluctuation, exchange rate fluctuation, delay in project completion and interest rate fluctuation. In Hong Kong, the top five significant risk factors are delay in land acquisition, operational cost overruns, construction cost overruns, delay in project completion and political interference.
Originality/value
The results of the study inform international investors of the appropriate risk mitigation measures and preventive actions to use when engaging in PPP arrangements in any part of the world. Further, governments who are yet to use the PPP concept would be informed of the prevailing risk factors in other neighbouring countries (i.e. developing or developed countries).
Keywords
Acknowledgements
This paper forms part of a PhD research project entitled “A best practice framework for PPP implementation for infrastructure development in Ghana”, from which other papers have been produced with different objective/scope but share the same background and methodology. The research project described is fully supported by the Hong Kong PhD Fellowship Scheme from the Research Grants Council of the Hong Kong Special Administrative Region and The Hong Kong Polytechnic University, Hong Kong. The authors wish to express their sincere gratitude to all PPP practitioners and researchers in Ghana and Hong Kong who participated in this research study.
Citation
Osei-Kyei, R. and Chan, A.P.C. (2017), "Risk assessment in public-private partnership infrastructure projects: Empirical comparison between Ghana and Hong Kong", Construction Innovation, Vol. 17 No. 2, pp. 204-223. https://doi.org/10.1108/CI-08-2016-0043
Publisher
:Emerald Publishing Limited
Copyright © 2017, Emerald Publishing Limited