Analysis of the Formation Path of the Residual Value Risk in Public Private Partnership Projects Based on SEM Method

Tie Lan Teng; Jing Feng Yuan; Qi Ming Li

doi:10.4028/www.scientific.net/AMR.1079-1080.1126

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HomeAdvanced Materials ResearchAdvanced Materials Research Vols. 1079-1080Analysis of the Formation Path of the Residual...

Analysis of the Formation Path of the Residual Value Risk in Public Private Partnership Projects Based on SEM Method

Abstract:

Over the last 15 years, public-private partnership (PPP) has been acknowledged by many countries as an innovative approach to the procurement of public projects. In the long term of concession periods, Residual Value Risk (RVR) is a structured risk system which would happen at any time in the whole life before transfer of PPP/PFI projects, but consequently causes the Residual Value (RV) that the Government takes over cannot fulfill the specifications. So the RVR factor system was identified through the literature review and a worldwide structured questionnaire survey was conducted to analyze the significance of the identified risk factors of RVR. Furthermore, the formation path of RVR was verified based on Structural Equation Modeling (SEM). Through the proposed formation path of RVR, both the public sector and private sector can monitor the risks to help improve the implementation of PPP projects and achieve PPP project success.