Share:


A SWARA-COPRAS approach to the allocation of risk in water and sewerage public–private partnership projects in Malaysia

    Alireza Valipour Affiliation
    ; Nordin Yahaya Affiliation
    ; Norhazilan MD Noor Affiliation
    ; Iman Valipour Affiliation
    ; Jolanta Tamošaitienė Affiliation

Abstract

In a situation of growing water demand, inadequate public funding, poor asset condition and lack of maintenance in developing countries, public-private partnerships (PPPs) play an important role in the development of infrastructure, such as water supply and sewerage services. The purpose of this study is to develop a quantitative approach to appropriate risk allocation, with attention directed to the impact of positive and negative factors in water and sewerage projects. The paper presents a hybrid SWARA-COPRAS approach to examine risk allocation, particularly for PPP water supply and sewerage projects in the context of Malaysia. In addition to PPP infrastructure projects, the approach has the potential to be adapted to other applications. The proposed method enables decision makers to utilise qualitative linguistic terms in the allocation of risk between the public and private sector, and to select the best strategy for risk allocation in a contract. Finally, 24 significant risks were identified: six risks would preferably be allocated to the public sector, while seven risks would be assigned to the private sector, and eleven risks would preferably be shared by both parties. The finding from this study can help the government of Malaysia to determine an attractive political strategy for private investors to support a PPP water and sewerage infrastructure project.

Keyword : water and sewerage projects, PPP, risk allocation, SWARA, COPRAS method

How to Cite
Valipour, A., Yahaya, N., Noor, N. M., Valipour, I., & Tamošaitienė, J. (2019). A SWARA-COPRAS approach to the allocation of risk in water and sewerage public–private partnership projects in Malaysia. International Journal of Strategic Property Management, 23(4), 269-283. https://doi.org/10.3846/ijspm.2019.8066
Published in Issue
Mar 14, 2019
Abstract Views
178
PDF Downloads
117
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Abdulai, A.-G. (2009). Political will in combating corruption in developing and transition economies: a comparative study of Singapore, Hong Kong and Ghana. Journal of Financial Crime, 16(4), 387-417. https://doi.org/10.1108/13590790910993753

Aghdaie, M. H., Zolfani, S. H., & Zavadskas, E. K. (2013). Decision making in machine tool selection: an integrated approach with SWARA and COPRAS-G methods. Inzinerine Ekonomika – Engineering Economics, 24(1), 5-17. https://doi.org/10.5755/j01.ee.24.1.2822

Alireza, V., Mohammadreza, Y., Zin, R. M., Yahaya, N., & Noor, N. M. (2013). An enhanced multi-objective optimization approach for risk allocation in public-private partnership projects: a case study of Malaysia. Canadian Journal of Civil Engineering, 41(2), 164-177. https://doi.org/10.1139/cjce-2013-0342

Ameyaw, E. E., & Chan, A. P. (2015). Evaluation and ranking of risk factors in public – private partnership water supply projects in developing countries using fuzzy synthetic evaluation approach. Expert Systems with Applications, 42(12), 5102-5116. https://doi.org/10.1016/j.eswa.2015.02.041

Ameyaw, E. E., & Chan, A. P. (2016). A fuzzy approach for the allocation of risks in public-private partnership water-infrastructure projects in developing countries. Journal of Infrastructure Systems, 22(3). https://doi.org/10.1061/(ASCE)IS.1943-555X.0000297

Ameyaw, E. E., & Chan, A. P. C. (2013). Identifying publicprivate partnership (PPP) risks in managing water supply projects in Ghana. Journal of Facilities Management, 11(2), 152-182. https://doi.org/10.1108/14725961311314651

Bhatnagar, R., Kim, J., & Many, J. E. (2014). Candidate surveys on program evaluation: examining instrument reliability, validity and program effectiveness. American Journal of Educational Research, 2(8), 683-690. https://doi.org/10.12691/education-2-8-18

Bing, L., Akintoye, A., Edwards, P. J., & Hardcastle, C. (2005). The allocation of risk in PPP/PFI construction projects in the UK. International Journal of Project Management, 23(1), 25-35. https://doi.org/10.1016/j.ijproman.2004.04.006

Carbonara, N., Costantino, N., Gunnigan, L., & Pellegrino, R. (2015). Risk management in motorway PPP projects: empirical-based guidelines. Transport Reviews, 35(2), 162-182. https://doi.org/10.1080/01441647.2015.1012696

Chan, A. P., Lam, P. T., Wen, Y., Ameyaw, E. E., Wang, S., & Ke, Y. (2015). Cross-sectional analysis of critical risk factors for PPP water projects in China. Journal of Infrastructure Systems, 21(1). https://doi.org/10.1061/(ASCE)IS.1943-555X.0000214

Chang, C.-Y. (2014). Principal-agent model of risk allocation in construction contracts and its critique. Journal of Construction Engineering and Management, 140(1). https://doi.org/10.1061/(ASCE)CO.1943-7862.0000779

Choi, J., Chung, J., & Lee, D.-J. (2010). Risk perception analysis: participation in China’s water PPP market. International Journal of Project Management, 28(6), 580-592. https://doi.org/10.1016/j.ijproman.2009.10.010

Department of Occupational Safety and Health. (2008). Guidelines for hazard identification, risk assessment, and risk control. Department of Occupational Safety and Health, Ministry of Human Resources, Malaysia. Retrieved from http://www.utar.edu.my/osh/file/58.%20DOSH%20-HIRARC%20Guidelines%20-%202008.pdf

Economic Planning Unit, Prime Minister’s Department. (2010). Building an environment that enhances quality of life (Chapter 6). In Tenth Malaysia Plan, 2011–2015. Retrieved from http://onlineapps.epu.gov.my/rmke10/img/pdf/en/chapt6.pdf

El-Sayegh, S. M. (2008). Risk assessment and allocation in the UAE construction industry. International Journal of Project Management, 26(4), 431-438. https://doi.org/10.1016/j.ijproman.2007.07.004

FAO/ESCAP. (2001). From vision to action: a synthesis of experiences in Southeast Asia. The FAO-ESCAP Pilot project on national water visions (L. H. Ti & T. Facon, Eds.). Food and Agriculture Organization of the United Nations, Economic and Social Commission for Asia and the Pacific, Bangkok. Retrieved from http://www.fao.org/docrep/004/AB776E/ab776e02.htm#bm2

Grasso, P., & Soldo, L. (2017). Risk analysis-driven design in tunnelling: the state-of-the-art, learnt from past experiences, and horizon for future development. Innovative Infrastructure Solutions, 2, 49. https://doi.org/10.1007/s41062-017-0087-2

Hall, D., & Lobina, E. (2007). International actors and multinational water company strategies in Europe, 1990–2003. Utilities Policy, 15(2), 64-77. https://doi.org/10.1016/j.jup.2007.02.005

Hwang, B.-G., Zhao, X., & Gay, M. J. S. (2013). Public private partnership projects in Singapore: factors, critical risks and preferred risk allocation from the perspective of contractors. International Journal of Project Management, 31(3), 424-433. https://doi.org/10.1016/j.ijproman.2012.08.003

Hwang, B.-G., Zhao, X., & Yu, G. S. (2016). Risk identification and allocation in underground rail construction joint ventures: contractors’ perspective. Journal of Civil Engineering and Management, 22(6), 758-767. https://doi.org/10.3846/13923730.2014.914095

Iqbal, S., Choudhry, R. M., Holschemacher, K., Ali, A., & Tamošaitienė, J. (2015). Risk management in construction projects. Technological and Economic Development of Economy, 21(1), 65-78. https://doi.org/10.3846/20294913.2014.994582

Jae-Seung, L., & Yea-Sang, K. (2017). Analysis of cost-increasing risk factors in modular construction in Korea Using FMEA. KSCE Journal of Civil Engineering, 21(6), 1999-2010. https://doi.org/10.1007/s12205-016-0194-1

Jin, X. H., & Doloi, H. (2008). Interpreting risk allocation mechanism in public-private partnership projects: an empirical study in a transaction cost economics perspective. Construction Management and Economics, 26(7), 707-721. https://doi.org/10.1080/01446190801998682

Jin, X.-H., & Zhang, G. (2011). Modelling optimal risk allocation in PPP projects using artificial neural networks. International Journal of Project Management, 29(5), 591-603. https://doi.org/10.1016/j.ijproman.2010.07.011

Kaklauskas, A., Zavadskas, E. K., Raslanas, S., Ginevicius, R., Komka, A., & Malinauskas, P. (2006). Selection of low-e windows in retrofit of public buildings by applying multiple criteria method COPRAS: a Lithuanian case. Energy and Buildings, 38(5), 454-462. https://doi.org/10.1016/j.enbuild.2005.08.005

Karabašević, D., Stanujkić, D., Urošević, S., & Maksimović, M. (2016). An approach to personnel selection based on SWARA and WASPAS methods. Bizinfo (Blace), 7(1), 1-11. https://doi.org/10.5937/bizinfo1601001K

Kauffmann, C., & Pérard, E. (2007). Stocktaking of the water and sanitation sector and private sector involvement in selected African countries. Background note for the regional roundtable on Strengthening Investment Climate Assessment and Reform in NEPAD Countries. Lusaka, Zambia. Retrieved from http://www.oecd.org/dataoecd/17/8/39679099.pdf

Ke, Y., Wang, S. Q., & Chan, A. P. C. (2013). Risk misallocation in public-private partnership projects in China. International Public Management Journal, 16(3), 438-460. https://doi.org/10.1080/10967494.2013.825508

Keršuliene, V., Zavadskas, E. K., & Turskis, Z. (2010). Selection of rational dispute resolution method by applying new stepwise weight assessment ratio analysis (SWARA). Journal of Business Economics and Management, 11(2), 243-258. https://doi.org/10.3846/jbem.2010.12

Khazaeni, G., Khanzadi, M., & Afshar, A. (2012a). Fuzzy adaptive decision making model for selection balanced risk allocation. International Journal of Project Management, 30(4), 511-522. https://doi.org/10.1016/j.ijproman.2011.10.003

Khazaeni, G., Khanzadi, M., & Afshar, A. (2012b). Optimum risk allocation model for construction contracts: fuzzy TOPSIS approach. Canadian Journal of Civil Engineering, 39(7), 789-800. https://doi.org/10.1139/l2012-038

Kundakcı, N., & Işık, A. (2016). Integration of MACBETH and COPRAS methods to select air compressor for a textile company. Decision Science Letters, 5(3), 381-394. https://doi.org/10.5267/j.dsl.2016.2.003

Lam, K., Wang, D., Lee, P. T., & Tsang, Y. (2007). Modelling risk allocation decision in construction contracts. International Journal of Project Management, 25(5), 485-493. https://doi.org/10.1016/j.ijproman.2006.11.005

Loosemore, M., & McCarthy, C. (2008). Perceptions of contractual risk allocation in construction supply chains. Journal of Professional Issues in Engineering Education and Practice, 134(1). https://doi.org/10.1061/(ASCE)1052-3928(2008)134:1(95)

Marques, R. C., & Berg, S. (2011). Risks, contracts, and public-sector participation in infrastructure. Journal of Construction in Engineering and Management, 137(11). https://doi.org/10.1061/(ASCE)CO.1943-7862.0000347

Mulliner, E., Malys, N., & Maliene, V. (2016). Comparative analysis of MCDM methods for the assessment of sustainable housing affordability. Omega, 59, 146-156. https://doi.org/10.1016/j.omega.2015.05.013

Organ, A., & Yalçın, E. (2016). Performance evaluation of research assistants by COPRAS method. European Scientific Journal, 12(10), 102-109.

Osei-Kyei, R., & Chan, A. P. (2015). Developing transport infrastructure in Sub-Saharan Africa through public-private partnerships: policy practice and implications. Transport Reviews, 36(2), 170-186. https://doi.org/10.1080/01441647.2015.1077288

Tan, J. (2012). The pitfalls of water privatization: failure and reform in Malaysia. World Development, 40(12), 2552-2563. https://doi.org/10.1016/j.worlddev.2012.05.012

Valipour, A., Mohammadi, F., Yahaya, N., Sarvari, H., & Noor, N. M. (2014). Identification and evaluation of risk allocation criteria and barriers: a Malaysian public private partnership project case study. Journal of Applied Sciences, 14(18), 2023-2031. https://doi.org/10.3923/jas.2014.2023.2031

Valipour, A., Yahaya, N., Md Noor, N., Kildienė, S., Sarvari, H., & Mardani, A. (2015). A fuzzy analytic network process method for risk prioritization in freeway PPP projects: an Iranian case study. Journal of Civil Engineering and Management, 21(7), 933-947. https://doi.org/10.3846/13923730.2015.1051104

Wibowo, A., & Mohamed, S. (2010). Risk criticality and allocation in privatised water supply projects in Indonesia. International Journal of Project Management, 28(5), 504-513. https://doi.org/10.1016/j.ijproman.2009.08.003

World Bank. (2016). Private participation in infrastructure database. The World Bank Group. Retrieved from http://ppi.worldbank.org/snapshots/country/malaysia

Xu, Y., Chan, A. P., & Yeung, J. F. (2010). Developing a fuzzy risk allocation model for PPP projects in China. Journal of Construction Engineering and Management, 136(8), 894-903. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000189

Yang, T., Long, R., Cui, X., Zhu, D., & Chen, H. (2017). Application of the public–private partnership model to urban sewage treatment. Journal of Cleaner Production, 142(Part 2), 1065-1074. https://doi.org/10.1016/j.jclepro.2016.04.152

Yeung, J. F. Y., Chan, A. P. C., Chan, D. W. M., & Li, L. K. (2007). Development of a partnering performance index (PPI) for construction projects in Hong Kong: a Delphi study. Construction Management and Economics, 25(12), 1219-1237. https://doi.org/10.1080/01446190701598673

Zavadskas, E. K., & Kaklauskas, A. (1996). Determination of an efficient contractor by using the new method of multicriteria assessment. In D. A. Langford & A. Retik (Eds.), International symposium for “The Organization and Management of Construction”, Shaping Theory and Practice: Vol. 2. Managing the construction project and managing risk (pp. 94-104). CIB W65. London: E and FN SPON.

Zavadskas, E. K., Kaklauskas, A., Peldschus, F., & Turskis, Z. (2007). Multi-attribute assessment of road design solutions by using the COPRAS method. Baltic Journal of Road & Bridge Engineering, 2(4), 195-203.

Zavadskas, E. K., Kaklauskas, A., Turskis, Z., & Tamošaitiene, J. (2008). Selection of the effective dwelling house walls by applying attributes values determined at intervals. Journal of Civil Engineering and Management, 14(2), 85-93. https://doi.org/10.3846/1392-3730.2008.14.3

Zavadskas, E. K., Turskis, Z., & Tamosaitiene, J. (2010). Risk assessment of construction projects, Journal of Civil Engineering and Management, 16(1), 33-46. https://doi.org/10.3846/jcem.2010.03

Zeng, S., Wan, T., Tam, C., & Liu, D. (2007). Identifying risk factors of BOT for water supply projects. In Proceedings of the Institution of Civil Engineers, Water Management 161(WM2) (pp. 73-81).

Zhang, L., Ding, L., Wu, X., & Skibniewski, M. J. (2017). An improved Dempster–Shafer approach to construction safety risk perception. Knowledge-Based Systems, 132, 30-46. https://doi.org/10.1016/j.knosys.2017.06.014

Zolfani, S. H., & Bahrami, M. (2014). Investment prioritizing in high tech industries based on SWARA-COPRAS approach, Technological and Economic Development of Economy, 20(3), 534-553. https://doi.org/10.3846/20294913.2014.881435

Zolfani, S. H., & Saparauskas, J. (2013). New application of SWARA method in prioritizing sustainability assessment indicators of energy system. Inzinerine Ekonomika-Engineering Economics, 24(5), 408-414. https://doi.org/10.5755/j01.ee.24.5.4526