A Risk Evaluation Index System for Infrastructure PPP Model Based on FAHP Method

The upsurge in demand for infrastructure construction due to increasing urbanization and economic growth has prompted governments to invest more in infrastructure and public utilities. However, the high cost of infrastructure construction requires the inclusion of market mechanisms to attract social capital, leading to the innovative Public–Private-Partnership (PPP) model as a public service investment mechanism. Although the PPP model can effectively alleviate the debt burden of local governments, it also poses a variety of risks and complexities in decision-making. Thus, it is crucial to identify and evaluate the primary risks throughout the project lifecycle. This study constructs a risk index system from ten dimensions for infrastructure PPP projects and further adopts the fuzzy analytic hierarchy (FAHP) process to evaluate the identified risk factors. The study examines the Huzhou South Taihu New Area PPP project and identifies the project design stage risk as the most important. The findings in general could provide valuable insights for PPP project stakeholders to effectively manage key risks.