Assessment of Risk Allocation Criteria in Malaysian PPP Projects

Risk allocation is a key to controlling risks related the public private partnership projects. Risk allocation between parties included, namely private and public, is the essence of successful PPP project implementation. This research intends to identify and assessment significant risk allocation criteria preventing risk allocation to PPP project in Malaysia. Because of interaction among criteria, this research adopts Analytic Network Process in order to decompose decision model into meaningful network and weight decision elements. ANP approach is used to overcome the problems of interdependence and feedback between various criteria ranking alternatives for simulation of the imprecision of man’s judgment. Data has been collected through literature review, questionnaire and interview with PPP project experts. This study concludes that bear the risk at lowest price , control the chance of risk and risk attitude are of three major optimal risk allocation criteria in Malaysian PPP project.

Keywords:

Optimal risk allocation , Risk allocation criteria , PPP project , Analytic Network Process (ANP)