Equitable risks allocation of projects inside China: analyses from Delphi survey studies

Purpose – The purpose of this paper is to validate and elaborate on the preferred risk allocations for Chinese public‐private partnership (PPP) projects. Design/methodology/approach – A previous two‐round Delphi survey was carried out to identify the preferred risk allocations in Chinese PPP projects. A series of face‐to‐face interviews was subsequently conducted to collect actual risk allocations in some recently completed PPP projects. By comparing the preferred and actual allocations and discovering the reasons behind the differences, an equitable risk allocation scheme was then obtained. Findings – The comparative analysis showed a great degree of conformity between the two allocation schemes. These interviews effectively reinforce the rationale of the preferred risk allocations, so that they can be considered as equitable for PPP projects in China. Originality/value – Equitable risk allocation is critical to the success of a PPP project. The findings in this paper are hence important to investors for a better understanding of the risks of PPP projects in China.