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Risk perception analysis of BOT road project participants in India

Author

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  • 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
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    References listed on IDEAS

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    2. 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).
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. 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).
    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.
    14. Fatima Anam & Mubin Sajjad & Masood Rehan, 2024. "Risk-based integrated performance assessment framework for public-private partnership infrastructure projects," Organization, Technology and Management in Construction, Sciendo, vol. 16(1), pages 251-274.

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