Review Paper on Risk Management in PPP Highway Construction

Abstract

The paper explores the value of PPPs in meeting infrastructure demands and emphasises the need of effective risk management to avoid project failures. It looks at how PPPs have changed over time in India as well as other PPP types such Build-Operate-Transfer (BOT), Build-Own-Operate (BOO), Design-Build-Finance-Operate (DBFO), and Design-Build-Finance-Operate (DBFM). The advantages of PPPs are examined, with a focus on their capacity to draw in private funding, improve project efficiency, and encourage innovation. The study focuses on categorising risks, such as those associated with traffic revenues, land acquisition, and cost overruns. For PPP highway projects, critical success factors (CSFs) are identified. These CSFs include political stability, macroeconomic factors, contractual agreements, the availability of trained labour, and more. Numerous risk assessment techniques are described, emphasising their use in measuring risks and assisting in decision-making. These include the Delphi method, Analytic Hierarchy Process, fuzzy set theory, and Monte Carlo simulation. The report provides a thorough toolset for overcoming obstacles and succeeding in PPP highway building projects, highlighting the significance of educated decision-making and holistic project management.