Development of a risk management framework for( PPP) public market infrastructure projects in Zambia
Date
2019
Authors
Chileshe, Michael
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Journal ISSN
Volume Title
Publisher
The University of Zambia
Abstract
Public Private Partnerships have become an alternative contract model for government infrastructure. Construction and management of public markets has not been left out in this shift. Public markets come with several benefits, some of which include creating additional tax base with minimal local cost and increasing consumption of local products and agriculture among other benefits. Management of public markets in Zambia is in the hands of local authorities and sometimes cooperatives or the private sector. Risk management in the process of implementing PPP projects has been a challenge. The aim of the study therefore was to develop a risk management framework for implementing PPPs in Zambia’s public market infrastructure projects. A mixed method approach was used in conducting the study in that both qualitative and quantitative methods were used. Secondary data was collected from a comprehensive literature review whilst primary data was collected using interviews and questionnaires. From the results of the questionnaire survey, both the public and the private agreed that corruption, inflation, cost and time overruns, responsibility and risk distribution and errors in estimating project revenue inflows and project financing costs are the risks that are most likely going to occur in a PPP project. It was also established that no experience in dealing with PPPs, longer concessions, lack of understanding of PPPs by both government officials and locals and lack of guidelines on PPPs frequently caused risks in PPPs on public market infrastructure. Whilst expert judgement is mostly used as a risk planning, risk identification and analysis tool, it was evident that very few were using risk management processes due to lack of experience in PPPs. The allocation of risk was on the basis of an entity that will bear the risk at a lower cost and had the ability to bear the consequences of the risk. The developed risk management framework was validated using scoring approach.
Keywords: Public markets, risk, risk identification, risk planning, risk response risk management framework
Description
Thesis
Keywords
Risk management , Infrastructure (Economics)--Zambia