Volume 7, Issue 5 (May 2020), Pages: 6-11

----------------------------------------------

 Original Research Paper

 Title: Impact of political risk on construction cost in PPP project in KSA

 Author(s): Yahya Alfraidi ^1, *, Saleh Mohammed Alzahrani ², Fawaz Binsarra ³, Mohamed Hssan Hassan Abdelhafez ^{1, 4}, Emad Mohamed Noaime ¹, Mohamed Ahmed Said Mohamed ¹

 Affiliation(s):

 ¹Architecture Engineering Department, College of Engineering, Hail University, Hail, Saudi Arabia
 ²Civil Engineering Department, University of Business & Technology–UBT, Jeddah, Saudi Arabia
 ³College of Architecture, King Saud University, Riyadh, Saudi Arabia
 ⁴Architecture Engineering Department, Faculty of Engineering, Aswan University, Aswan, Egypt

  Full Text - PDF          XML

 * Corresponding Author. 

  Corresponding author's ORCID profile: https://orcid.org/0000-0002-8654-6797

 Digital Object Identifier: 

 https://doi.org/10.21833/ijaas.2020.05.002

 Abstract:

The primary purpose of this research paper is to investigate the impact of political risk factors in the lifecycle of Public-private partnerships (PPP). Due to a large number of stakeholders in PPP projects, the complexity of interactions between them increases which raises the importance of this study. Throughout an intensive literature review, this research paper extracted the most influential factors that impact the PPP projects, especially factors that impact the cost overrun, project termination, and project delay. The research methodology was applied is based on evaluating the risk factors extracted from the literature review on the probability of occurrence of the event and the size of the impact to result of the risk effect value. Data were collected from a questionnaire shared with experts in the field of construction to enhance the accuracy of the estimated risk impact. The analysis of the data gathered and the ranking of the political risk factors resulted in measures of the Risk Likelihood and Risk impact of the ten most impacting factors. The research concludes that the relationship between the impacts of risk factors is associated with the risk cost and actual construction price. 

 © 2020 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords: Impact of risks, Public-private partnership, Political risk, Construction cost

 Article History: Received 10 November 2019, Received in revised form 3 February 2020, Accepted 3 February 2020

 Acknowledgment:

No Acknowledgement.

 Compliance with ethical standards

 Conflict of interest: The authors declare that they have no conflict of interest.

 Citation:

 Alfraidi Y, Alzahrani SM, and Binsarra F et al. (2020). Impact of political risk on construction cost in PPP project in KSA. International Journal of Advanced and Applied Sciences, 7(5): 6-11

 Permanent Link to this page

 Figures

 Fig. 1 Fig. 2 Fig. 3

 Tables

 Table 1 Table 2 Table 3

----------------------------------------------

 References (9) 

1. Baloi D (2002). A framework for managing global risk factors affecting construction cost performance. Ph.D. Dissertation, Loughborough University, Loughborough, UK.   [Google Scholar]
2. Baloi D and Price AD (2003). Modelling global risk factors affecting construction cost performance. International Journal of Project Management, 21(4): 261-269. https://doi.org/10.1016/S0263-7863(02)00017-0   [Google Scholar]
3. Chan AP, Yeung JF, Yu CC, Wang SQ, and Ke Y (2010). Empirical study of risk assessment and allocation of public-private partnership projects in China. Journal of Management in Engineering, 27(3): 136-148. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000049   [Google Scholar]
4. Delmon J (2009). Private sector investment in infrastructure: Project finance, PPP projects and risks. 2^nd Edition, World Bank Publications, Washington, USA.   [Google Scholar]
5. Howell AR (1998). Risk allocation in the Melbourne city link project. The Journal of Structured Finance, 4(3): 11-24. https://doi.org/10.3905/jsf.4.3.24   [Google Scholar]
6. Ke Y, Wang S, and Chan APC (2010). Risk allocation in public-private partnership infrastructure projects: Comparative study. Journal of Infrastructure Systems, 16(4): 343-351. https://doi.org/10.1061/(ASCE)IS.1943-555X.0000030   [Google Scholar]
7. Kreydieh A (1996). Risk management in BOT project financing. Ph.D. Dissertation, Massachusetts Institute of Technology, Cambridge, USA.   [Google Scholar]
8. Sachs T, Tiong R, and Qing WS (2007). Analysis of political risks and opportunities in public private partnerships (PPP) in China and selected Asian countries: Survey results. Chinese Management Studies, 1(2): 126-148. https://doi.org/10.1108/17506140710758026   [Google Scholar]
9. Xu Y, Yang Y, Chan AP, Yeung JF, and Cheng H (2011). Identification and allocation of risks associated with PPP water projects in China. International Journal of Strategic Property Management, 15(3): 275-294. https://doi.org/10.3846/1648715X.2011.617867   [Google Scholar]