Critical Risk Factors Associated with Public Private Partnership Housing Projects

Abstract

Abstract Studies have shown that project risks are responsible for the failure of most Public Private Partnership (PPP) projects. The study examined the critical risk factors associated with PPP housing projects. Data for the research was obtained through a questionnaire. The data were analysed using descriptive statistics and mean ratings. Corruption and bribery among contracting parties (0.681), Exchange rate volatility (0.621) Availability of development funds (0.599) and Change in government (0.580) were the critical risk factors identified. The study also indicated that project cost is highly influenced by lack of development funds and changes in interest rates. The quality of PPP housing projects in Abuja was found to be influenced by partner selection risks. The study suggested a competitive, transparent, and efficient bid process to eliminate corruption, workable strategies for ensuring the availability of development funds at a cheaper rate and adopting mixed strategy in which government continues to provide social housing to the low-income class while providing the enabling environment for the private sector to thrive.