A pilot-study investigating the assessment and allocation of risks in public-private partnership transportation projects in Vietnam

authored by: M. Nguyen Nhat, John Lewis, Michael Beer, Abdelhalim Boussabaine
Abstract: Many PPP projects have failed because of risks occurring during operation and earlier studies have demonstrated a need risk assessment and allocation methods for PPPs. Although researchers have been working in this area for years, the amount of empirical work is limited, especially when applied to developing countries. This paper will review previous studies and then describe a pilot study which was carried out in Vietnam. Forty one questionnaires were sent to practitioners working on PPP transportation projects and to officials from government departments. The study attempted to identify key risks in PPPs in Vietnam, and risk allocation perceptions of practitioners in these projects. Also, the pilot study also aimed to test the methods of collecting data, the quality of the questionnaires, and the ability to assess running projects. The purpose of this testing was to carry out a larger study in the fieldwork stage of a PhD program. The findings of the study suggest that ineffective decision-making processes by the public sector, difficulty in obtaining approvals, high inflation, and corruption are the most critical risks in Vietnamese PPPs. For risk allocation, the findings suggest that the government is willing to manage risks relating to political and legal issues. Whereas, private partners are willing to manage risks relating to constructing and operating issues. This may indicate that one of the prime objectives of PPP, the transferring risks to the private sector, has not been achieved. Importantly, the findings have suggested improvement for fieldwork plan. The paper will conclude by proposing a methodology for continuing the study.
External Organisation(s): University of Liverpool
Type: Conference contribution
Pages: 1419-1428
No. of pages: 10
Publication date: 2014
Publication status: Published
Peer reviewed: Yes
ASJC Scopus subject areas: Civil and Structural Engineering
Sustainable Development Goals: SDG 16 - Peace, Justice and Strong Institutions
Electronic version(s): http://www.arcom.ac.uk/-docs/proceedings/ar2014-1419-1428_Nhat_Lewis_Beer_Boussabaine.pdf (Access: Open)