Risk Identification and Prioritization in Public-Private Partnership Water Transfer Projects (Case Study: Water Transfer Project to Safadasht Lands)

Document Type : Case study

Authors

1 Assist. Prof., Dept. of Architecture, Faculty of Art and Architecture, University of Mazandaran, Babolsar, Iran

2 MSc. in Industrial Management, Faculty of Management, University of Tehran, Tehran, Iran

3 MSc. in Project Management, Nooretouba Higher Education Institute, Tehran, Iran

Abstract

In the face of growing water demand and insufficient public budgets in developing countries, public-private partnerships play an important role in infrastructure development, such as water supply and transmission. However, carrying out such projects always carries with it many and varied risks that threaten the success of such projects. Due to the research gap on risk identification and assessment in the context of public-private partnership water transfer projects, the purpose of the present research is to identify and prioritize the risks in Safadasht public-private partnership water transfer project. The first phase of the present research identifies the risks of public-private partnership projects. At this stage of the research, through the brainstorming method, an attempt was made to identify the risks related to the project under study. In the second stage, three research criteria including "probability of occurrence", "cost effect" and "time effect" were weighed using the best-worst method. The third stage, which was the final stage of the research, was dedicated to prioritizing the risks identified in the first stage using the simple additive weighting technique. Based on the analyzes performed, respectively, changes in legal conditions and standards by the government, sudden changes in bank interest rates, severe climate change, damage to the investor's manpower and improper performance of the investor project factors were identified as the most important risks. Finally, while pointing out the limitations of the research, some suggestions for future studies were presented.

Keywords

References

Abdul-Aziz, A. R. 2001. Unraveling of BOT scheme: Malaysia's Indah water konsortium. Journal of Construction Engineering and Management, 127, 457-460.
Ameyaw, E. E. & Chan, A. P. 2013. Identifying public‐private partnership (PPP) risks in managing water supply projects in Ghana. Journal of Facilities Management, 11(2), 152-182.
Amiri, O., Ayazi, A., Rahimi, M. & Khazaeni, G. 2021. Risks of water and wastewater PPP projects: an investors’ perspective. Construction Innovation, 22(3), 87.
Cui, C., Liu, Y., Hope, A. & Wang, J. 2018. Review of studies on the public–private partnerships (PPP) for infrastructure projects. International Journal of Project Management, 36, 773-794.
Cunha Marques, R. & Berg, S. 2011. Public‐private partnership contracts: a tale of two cities with different contractual arrangements. Public Administration, 89(4), 1585-1603.
Eskandari, M., Taghavifard, M., Vanani, I. R. & Noori, S. G. 2021. An intelligent hybrid model for determining public-private partnership in Iranian water and wastewater industry based on collective tree algorithms. Journal of Water and Wastewater, 32(1), 69-90. (In Persian)
Ezeldin, A. & Badran, Y. 2013. Risk decision support system for public private partnership projects in Egypt. International Journal of Engineering and Innovative Technology, 3, 479-486.
Hodge, G. A., Greve, C. & Boardman, A. E. 2010. Conclusions: Public–Private Partnerships–International Experiences and Future Challenges. Edward Elgar Publishing. Cheltenham, UK.
Hwang, C. L. & Yoon, K. 1981. Methods for Multiple Attribute Decision Making. Multiple Attribute Decision Making. Springer. Helderberg, Berlin, Germany.
Kahinda, J. M. M., Taigbenu, A. E. & Boroto, J. R. 2007. Domestic rainwater harvesting to improve water supply in rural South Africa. Physics and Chemistry of the Earth, Parts A/B/C, 32(15-18), 1050-1057.
Marin, P. 2009. Public Private Partnerships for Urban Water Utilities: A Review of Experiences in Developing Countries. The International Bank for Reconstruction and Development/The World Bank Publishing. Washington. USA.
McQuaid, R. W. & Scherrer, W. 2010. Changing reasons for public–private partnerships (PPPs). Public Money and Management, 30(1), 27-34.
Mishra, A. K. 2018. Sustainability and risk assessment of Salyankot water supply project in post-earthquake scenario. International Journal of Operations Management and Information Technology, 8(1), 1-30.
Mishra, A. K. & Bhandari, S. 2018. Performance assessment of ongoing construction projects under town development fund, Nepal. International Journal of Advanced Research in Civil and Structural Engineering, 1, 27-39.
Nozari Poor, A. R., Ghasem Sharabiani, M. & Olad Ghaffari, P. 2017. Public-private partnership in the water and wastewater industry. Journal of Water and Sustainable Development, 4(1), 9-20. (In Persian)
Rassouli, B., Kheradyar, S. & Banimahd, B. 2018. Identify, rank and allocate critical risk the stages of public–private partnership by delphi technique in the context of resistance economy (case study: water and sewage industry Guilan Province). Journal of Investment Knowledge, 7(27), 125-140. (In Persian)
Rezaeenour, J., Mousavi Saleh, M. & Kolahkaj, A. R. 2018. Analyzing the risk factors of private–public partnerships for water supply projects using fuzzy synthetic evaluation: a case study of Iranian water supply projects. Water Science and Technology: Water Supply, 18(3), 1005-1019.
Rezaeenour, J. & Mousavi Saleh, M. 2017. Evaluation and ranking of public-private partnership risk factors in water supply projects, using FMEA and Fuzzy synthetic evaluation methods: a case study of Qom. Iran-Water Resources Research, 13(4), 100-117. (In Persian)
Rezaei, J. 2015. Best-worst multi-criteria decision-making method. Omega, 53, 49-57.
Rezaei, J. 2016. Best-worst multi-criteria decision-making method: some properties and a linear model. Omega, 64, 126-130.
Roozbahani, A., Ghased, H. & Shahedany, M. H. 2020. Inter-basin water transfer planning with grey COPRAS and fuzzy COPRAS techniques: a case study in Iranian central plateau. Science of the Total Environment, 726, 138499.
Sachs, T., Tiong, R. & Wang, S. Q. 2007. Analysis of political risks and opportunities in public private partnerships (PPP) in China and selected Asian countries: Survey results. Chinese Management Studies, 1(2), 126-148.
Sadeghi, S., Kazemi Kia, S., Kheirfam, H. & Hazbavi, Z. 2016. Experiences and consequences of inter-basin water transfer worldwide. Iran-Water Resources Research, 12(2), 120-140. (In Persian)
Sohrabinejad, A. & Rahimi, M. 2015. Risk determination, prioritization, and classifying in construction project case study: gharb Tehran commercial-administrative complex. Journal of Construction Engineering, 2015, 1-10.
Wibowo, A. & Mohamed, S. 2010. Risk criticality and allocation in privatised water supply projects in Indonesia. International Journal of Project Management, 28, 504-513.
Xu, Y., Yeung, J. F., Chan, A. P., Chan, D. W., Wang, S. Q. & Ke, Y. 2010. Developing a risk assessment model for PPP projects in China A fuzzy synthetic evaluation approach. Automation in Construction, 19, 929-943.
Yin, H., Li, Y. F. & Zhao, D. M. 2015. Risk factor empirical research of PPP projects based on factor analysis method. American Journal of Industrial and Business Management, 5, 383.
Journal of Water and Wastewater; Ab va Fazilab ( in persian )
Volume 33, Issue 2 - Serial Number 139
July and August 2022
Pages 132-152

Files

Share

How to cite

Statistics