Examining the Risks Associated with Public-Private Partnership Procurement Systems in Developing Economies

Procurement systems are vital in the implementation and delivery of infrastructural projects. The type of procurement system adopted directly influences the successful outcome of these projects. The widespread adoption of the public-private partnership (PPP) procurement system is highly proliferated in developing economies due to the government's financial constraints. This paper aims to identify and evaluate the risks associated with using the PPP procurement system in the South African construction industry. A quantitative research methodology was employed in the study. A structured questionnaire survey was disseminated among active construction professionals in the Gauteng province of South Africa to facilitate data collection. The collected data underwent descriptive statistical analysis. The study's results identified 26 significant factors, including political risks, unstable economic risks, cost overruns, delays in project approval permits, and lack of commitment from either partner as the top five risks linked to using PPP. The findings highlight the need to address these risks to ensure the PPP procurement system fulfils its objectives and benefits. It is highly recommended that comprehensive risk assessment, detailed contractual agreement, effective regulatory and institutional framework, capacity building and training, effective stakeholder engagement, political and economic stability, and regular monitoring and evaluation are ensured to overcome the various risks identified.