Stakeholders’ perception on project uncertainty in ppp Projects in India

Abstract

PPP projects are often complex, unique and dynamic due to high sunk-in costs and long concession period making it vulnerable to risks (known-unknowns) and uncertainties (unknown-unknowns). Previous researches focus on risks associated with PPP projects. But these projects are hit by uncertainties which surfaces as turbulences during the execution as well as the operation stage of the project. The extant literature does not focus much on the uncertainties manifested in these projects nor does it convey the stakeholders’ outlook on uncertainties, which has a strong bearing on project management. In order to ensure sustainability of PPP projects, among other factors, it is important to identify uncertainties that affect their performance in various phases or leads to uncertain situations. A superset of uncertainties identified from literature was subsequently expanded and validated by PPP Experts. Stakeholders perceptions on the fifty-four identified uncertainties likely to manifest in various phases was assessed through a survey to identify and evaluate the uncertainties that affect the implementation of transport PPP infrastructure projects as well as explore the perception of stakeholders on project uncertainties for endto- end sustainability. Differences in opinion among stakeholders on uncertainties often are found to act as a hurdle for effective implementation of PPPs. It is comforting to note that stakeholders have arrived at a general understanding on uncertainties since the inception of PPP projects in India, though there is long way to go. The comprehensive list of the uncertainties brought out in this paper validated by the experts in this field through their experience gained in managing PPP projects in India over the past two decades, when given due consideration while developing Concession Agreements in future will help to institutionalise addressing these unknown unknowns as well as keep the project officers prepared to effectively manage them as and when they unfold.