Kukah, A S K; Owusu-Manu, D G; Badu, E; Edwards, D J and Asamoah, E (2024) Fuzzy quantitative risk allocation model (fqram) to guide decision-making on risk allocation in Ghanaian public-private partnership (PPP) power projects. Journal of Financial Management of Property and Construction, 29(1), pp. 83-114. ISSN 1366-4387
Abstract
Purpose: Public-private partnership (PPP) power projects are associated with varying risk factors. This paper aims to develop a fuzzy quantitative risk allocation model (QRAM) to guide decision-making on risk allocation in PPP power projects in Ghana. Design/methodology/approach: A total of 67 risk factors and 9 risk allocation criteria were established from literature and ranked in a two-round Delphi survey using questionnaires. The fuzzy synthetic evaluation method was used in developing the risk allocation model. Findings: The model’s output variable is the risk allocation proportions between the public body and private body based on their capability to manage the risk factors. Out of the 37 critical risk factors, the public sector was allocated 12 risk factors with proportions = 50%, while the private sector was allocated 25 risk factors with proportions = 50%. Originality/value: To the best of the authors' knowledge, this research presents the first attempt in Ghana at endeavouring to develop a QRAM for PPP power projects. There is confidence in the model to efficiently allocate risks emanating from PPP power projects.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | fuzzy quantitative risk allocation model; power projects; public-private partnerships; risk factors |
| Index terms: | Delphi survey, partnership, private sector, Ghana, public sector, risk allocation, risk factor, fuzzy synthetic evaluation, decision-making, methodology, questionnaire |
| Subjects: | partnership management, decision analysis, administrative law, decision-making and optimization, industry analysis, environmental hazards, research methods, Geography, financial risk, data collection methods |
| Topics: | Legal Issues, Business Strategy, Cost Management, Geographical Context, Research Practice, Stakeholder Management, Risk Management, Sustainability |
| Descriptive scope: | 5 PCTEA |
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