IDEAS home Printed from https://ideas.repec.org/a/taf/conmgt/v21y2003i4p393-407.html
   My bibliography  Save this article

Risk perception analysis of BOT road project participants in India

Author

Listed:
  • A. V. Thomas
  • Satyanarayana Kalidindi
  • K. Ananthanarayanan

Abstract

Despite massive investment opportunities and the establishment of a framework for private sector participation in highway infrastructure development programmes in India, private investment (including foreign direct investment) in this sector is not up to the expected level. A high degree of risk exposure, disagreement on many risk issues among major stakeholders, and the absence of adequate government guarantees have been identified as some of the major reasons for this lukewarm response. This paper discusses the outcome of a risk perception analysis carried out to evaluate the risk criticality, risk management capability, risk allocation/sharing preference, and factors influencing risk acceptance of major stakeholders. A survey was conducted among senior project participants such as government officials, promoters, lenders and consultants of Indian BOT road projects. Eight types of risks have been identified as very critical in the Indian road sector under BOT set up with traffic revenue risk being the most critical. Though there is fair agreement among survey respondents with respect to the risk management capabilities of stakeholders, their preferences of allocations are divergent. The significant factors influencing the risk acceptance of each stakeholder are identified through regression analysis. The study reveals that the factors and their relative influence on the risk acceptance of stakeholders are considerably different.

Suggested Citation

  • A. V. Thomas & Satyanarayana Kalidindi & K. Ananthanarayanan, 2003. "Risk perception analysis of BOT road project participants in India," Construction Management and Economics, Taylor & Francis Journals, vol. 21(4), pages 393-407.
    • Handle: RePEc:taf:conmgt:v:21:y:2003:i:4:p:393-407
    DOI: 10.1080/0144619032000064127
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/0144619032000064127
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/0144619032000064127?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Alexander, Ian & Estache, Antonio & Oliveri, Adele, 2000. "A few things transport regulators should know about risk and the cost of capital," Utilities Policy, Elsevier, vol. 9(1), pages 1-13, March.
    2. Estache, Antonio & Strong, John, 2000. "The rise, the fall, and ... : the emerging recovery of project finance transport," Policy Research Working Paper Series 2385, The World Bank.
    3. Aloysius, John A., 1999. "Risk aggregation and the efficient selection of joint projects by a consortium," Omega, Elsevier, vol. 27(3), pages 389-396, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Abraham Park & Chen Yu Chang, 2013. "Impacts of Construction Events on the Project Equity Value of the Channel Tunnel Project," ERES eres2013_97, European Real Estate Society (ERES).
    2. Shubham Gupta & Raghav Khanna & Pranay Kohli & Sarthak Agnihotri & Umang Soni & M. Asjad, 2023. "Risk evaluation of electric vehicle charging infrastructure using Fuzzy AHP – a case study in India," Operations Management Research, Springer, vol. 16(1), pages 245-258, March.
    3. Yiannis Xenidis & Demos Angelides, 2005. "The financial risks in build-operate-transfer projects," Construction Management and Economics, Taylor & Francis Journals, vol. 23(4), pages 431-441.
    4. Usman Ahmad & Yusnidah Ibrahim & Mohd Sobri Minai, 2017. "Public Private Partnership in Malaysia: The Differences in Perceptions on the Criticality of Risk Factors and Allocation of Risks between the Private and Public Sectors," International Review of Management and Marketing, Econjournals, vol. 7(2), pages 138-150.
    5. Robert Osei-Kyei & Albert P. C. Chan & Yao Yu & Chuan Chen & Yongjian Ke & Bashir Tijani, 2019. "Social Responsibility Initiatives for Public-Private Partnership Projects: A Comparative Study between China and Ghana," Sustainability, MDPI, vol. 11(5), pages 1-14, March.
    6. Chandan Kumar, 2018. "Role of bidding method and risk allocation in the performance of public private partnership (PPP) projects," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2018-013, Indira Gandhi Institute of Development Research, Mumbai, India.
    7. Fleta-Asín, Jorge & Muñoz, Fernando, 2020. "How does risk transference to private partner impact on public-private partnerships’ success? Empirical evidence from developing economies," Socio-Economic Planning Sciences, Elsevier, vol. 72(C).
    8. Hongyan Chen & Ruwen Qin, 2012. "Real options as an incentive scheme for managing revenues in transportation infrastructure projects," International Journal of Revenue Management, Inderscience Enterprises Ltd, vol. 6(1/2), pages 77-101.
    9. Zhao, Zhen-Yu & Zuo, Jian & Zillante, George, 2013. "Factors influencing the success of BOT power plant projects in China: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 22(C), pages 446-453.
    10. Sy, Do Tien & Likhitruangsilp, Veerasak & Onishi, Masamitsu & Nguyen, Phong Thanh, 2016. "Different Perceptions of Concern Factors for Strategic Investment of The Private Sector in Public-Private Partnership Transportation Projects," MPRA Paper 96581, University Library of Munich, Germany.
    11. Babatunde, Solomon Olusola & Perera, Srinath, 2017. "Analysis of traffic revenue risk factors in BOT road projects in developing countries," Transport Policy, Elsevier, vol. 56(C), pages 41-49.
    12. Usama Issa & Muwaffaq Alqurashi & Ibrahim Salama, 2021. "Qualitative Analysis of Risks Affecting the Delivery of Land Surveying Project Activities," Sustainability, MDPI, vol. 13(22), pages 1-20, November.
    13. Henry J Liu & Peter ED Love & Jim Smith & Michael CP Sing & Jane Matthews, 2018. "Evaluation of public–private partnerships: A life-cycle Performance Prism for ensuring value for money," Environment and Planning C, , vol. 36(6), pages 1133-1153, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Roma, Paolo & Perrone, Giovanni, 2016. "Cooperation among competitors: A comparison of cost-sharing mechanisms," International Journal of Production Economics, Elsevier, vol. 180(C), pages 172-182.
    2. Corria da Silva, Luis & Estache, Antonio & Jarvela, Sakari, 2006. "Is debt replacing equity in regulated privatised infrastructure in LDCs?," Utilities Policy, Elsevier, vol. 14(2), pages 90-102, June.
    3. Eduardo Walker, 2016. "Cost of Capital in Emerging Markets: Bridging Gaps between Theory and Practice," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 53(1), pages 111-147, December.
    4. Rocha, Katia & Camacho, Fernando & Braganca, Gabriel, 2007. "Return on capital of Brazilian electricity distributors: A comparative analysis," Energy Policy, Elsevier, vol. 35(4), pages 2526-2537, April.
    5. Arblaster, Margaret, 2018. "Regulation in markets facing uncertainty: The case of Australia," Journal of Air Transport Management, Elsevier, vol. 67(C), pages 249-258.
    6. Xiao, Tiaojun & Choi, Tsan-Ming, 2009. "Purchasing choices and channel structure strategies for a two-echelon system with risk-averse players," International Journal of Production Economics, Elsevier, vol. 120(1), pages 54-65, July.
    7. Antonio Estache & Anne-Sophie Steichen, 2015. "Is Belgium overshooting in its policy support to cut the cost of capital of renewable sources of energy ?," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(1), pages 33-45.
    8. Tobias Kretschmer & Hans-Ulrich Küpper & Burkhard Pedell, 2011. "Bedingungen und Prinzipien einer konsistenten Regulierung," Schmalenbach Journal of Business Research, Springer, vol. 63(64), pages 1-31, January.
    9. Trappey, Charles V. & Shih, Tsui-Yii & Trappey, Amy J.C., 2007. "Modeling international investment decisions for financial holding companies," European Journal of Operational Research, Elsevier, vol. 180(2), pages 800-814, July.
    10. Antonio Estache & Ellis Juan & Lourdes Trujillo, 2011. "Public–Private Partnerships in Transport," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 30, Edward Elgar Publishing.
    11. Clive Harris & Sri Tadimalla Kumar, 2008. "Financing the Boom in Public-Private Partnerships in Indian Infrastructure : Trends and Policy Implications," World Bank Publications - Reports 10577, The World Bank Group.
    12. Sirtaine, Sophie & Pinglo, Maria Elena & Guasch, J. Luis & Foster, Vivien, 2005. "How profitable are private infrastructure concessions in Latin America?: Empirical evidence and regulatory implications," The Quarterly Review of Economics and Finance, Elsevier, vol. 45(2-3), pages 380-402, May.
    13. J. Luis Guasch, 2004. "Granting and Renegotiating Infrastructure Concessions : Doing it Right," World Bank Publications - Books, The World Bank Group, number 15024.
    14. Gaggero, Alberto A., 2007. "Regulatory risk in the utilities industry: An empirical study of the English-speaking countries," Utilities Policy, Elsevier, vol. 15(3), pages 191-205, September.
    15. Bahman Kashi, 2014. "Risk Management and the Stated Capital Costs by Independent Power Producers," Development Discussion Papers 2014-03, JDI Executive Programs.
    16. Singh, Kewal & Singh, Anoop & Prakash, Puneet, 2022. "Estimating the cost of equity for the regulated energy and infrastructure sectors in India," Utilities Policy, Elsevier, vol. 74(C).
    17. Checherita, Cristina & Gifford, Jonathan, 2007. "Risk Sharing in Public-Private Partnerships: General Considerations and an Evaluation of the U.S. Practice in Road Transportation," 48th Annual Transportation Research Forum, Boston, Massachusetts, March 15-17, 2007 207820, Transportation Research Forum.
    18. A. Estache & M.E. Pinglo, 2005. "Are returns to private infrastructure in developing countries consistent with risks since the Asian crisis?," Competition and Regulation in Network Industries, Intersentia, vol. 6(1), pages 47-75, September.
    19. Paul Noumba Um & Laurent Gille & Lucile Simon & Christophe Rudelle, 2004. "A Model for Calculating Interconnection Costs in Telecommunications," World Bank Publications - Books, The World Bank Group, number 15040.
    20. Martins, José & Marques, Rui Cunha & Cruz, Carlos Oliveira, 2014. "Maximizing the value for money of PPP arrangements through flexibility: An application to airports," Journal of Air Transport Management, Elsevier, vol. 39(C), pages 72-80.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:conmgt:v:21:y:2003:i:4:p:393-407. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RCME20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.