Abstract
The inadequate risk management of public-private partnership (PPP) projects is a principal cause of project distress or failure. This research seeks to identify and empirically validate measures of effective risk management (ERM) in the context of PPPs in a developing country, a subject that has received scant attention in the extant literature. The research is based on a comprehensive literature review, expert interviews and a questionnaire survey. Mean score ranking and factor analysis were employed to rank and group the identified measures, respectively. Tests were performed to determine the respondents' agreement and establish the reliability and validity of the survey instrument. Analysis results indicate that all identified measures are important, are distributed over the entire project's life cycle and exhibit a multi-organizational focus. The most significant measures focus on PPP-specific artifacts and procurement activities that are vital for ERM. Factor analysis established six critical underlying dimensions for the ERM of PPP projects. The extracted factors generally acknowledge the need for expert public- and private-sector project stakeholders with mature organizational structures, business processes and relevant experience to successfully handle and deliver PPP projects. Furthermore, a comprehensive PPP policy and sound legal and regulatory frameworks are essential for supporting the ERM of PPP projects. The findings will enable a better understanding of factors that influence the quality and outcomes of risk management efforts and promote sustainable infrastructure development via PPPs, where the success of a project strongly relies on positively managing a project's risks in the economic and the social domains.