| 1. | KPI1 Cost | PM-1 Construction Cost Variance | F-9: Inflation and inaccurate estimate of market demand | Inflation and Inaccurate Estimation: Improper estimations of inflation and market conditions can result in the construction cost at various stages varying from the estimated costs. | Mitigate – Conduct accurate market research and update budgets periodically. |
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| EG-1: Act of God/Force Majeure | Act of God/Force Majeure: Unexpected phenomena such as floods, earthquakes, pandemics and so on may cause economic strain in the market, resulting in increased prices of resources. | Transfer – Obtain insurance coverage and enforce safety measures at the construction site. |
| 2. |
| PM-2 Construction Cost | EG-1: Act of God/Force Majeure | Act of God/Force Majeure: Unexpected phenomena such as floods, earthquakes, pandemics and so on may cause economic strain in the market, resulting in increased prices of resources and ultimately impacting the overall final cost of the project which may be more than that of similar PPP projects. | Transfer – Transfer risk to third parties through insurance. |
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| F-7: Change in Project Cost | Change in Project Cost: A change in the cost of a project at any phase may have a huge impact on the overall cost of the project. | Mitigate – Conduct comprehensive feasibility studies and adhere to project standards to minimise cost variations. |
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| PM-3 Viability of the Financial Model | OP-4: Unpredictable Revenue Generation | Revenue Generation: If unpredictable then the financial model may not be viable. | Mitigate – Strategies revenue scenarios during feasibility studies and propose efficient VGF Models. |
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| CP-1: Improper project feasibility study and planning | Feasibility Study and Planning: If not properly done then it may affect the profitability and financial viability of the project. | Avoid – Allocate adequate time and resources to ensure precise feasibility studies and planning. |
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| PM-4 VfM | OP-4: Unpredictable Revenue Generation | Revenue Generation: If unpredictable then the end – product gained may not provide financial benefit to the client, which decreases the VfM of the project. | Mitigate – Estimate revenue with consideration of various factors to maintain project value. |
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| CP-1: Improper project feasibility study and planning | Feasibility Study and Planning: If not properly done then the final project handed over to the client may not be feasible, resulting in reduced profitability and VfM. | Avoid – Conduct meticulous feasibility studies to ensure quality and cost balance throughout the project lifecycle. |
| 5. | KPI2 Time | PM-5 Construction Time Variance | EG-1: Act of God/Force Majeure | Act of God/Force Majeure: Unexpected phenomena such as floods, earthquakes, pandemics and so on may halt or delay the project, resulting in the actual completion time varying from the estimated time. | Transfer – Transfer force majeure risks to third parties for timely resolution. |
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| CP-12: Third-Party Delay and Violation | Third-Party Delays and Violation: Issues caused by third parties such as NGOs, environmental bodies and so on may cause time variation. | Mitigate-Address third-party delays through negotiation and pre-contract agreements. |
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| G-2: Inconsistency in governmental policies and regulations | Inconsistency in Governmental Policies and Regulations: Constantly changing policies and laws regarding PPP Projects, may affect the scheduled tasks and cause delays. | Avoid-Secure political risk insurance to mitigate regulatory inconsistencies. |
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| PM-6 Project Completion and Delays | CP-12: Third-Party Delay and Violation | Third-Party Delays and Violation: Issues caused by third parties such as NGOs, environmental bodies and so on may shut down the project or cause delays at various stages. | Mitigate-Establish clear communication channels with external entities. |
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| EG-1: Act of God/Force Majeure | Act of God/Force Majeure: Unexpected phenomena such as floods, earthquakes, pandemics and so on may completely stop or delay the project by causing irrefutable damages. | Transfer – Transfer force majeure risks to third parties. |
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| G-2: Inconsistency in governmental policies and regulations | Inconsistency in Governmental Policies and Regulations: Constantly changing policies and laws, including issues such as changes in government, may delay its construction and completion. | Avoid – Use governmental policies to maximise voluntary compliance. |
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| L-2: Contractual Changes and Ambiguities | Contractual Changes and Ambiguities: Due to contract changes, the scope and other parameters of the project may be redefined. Moreover, contract issues can lead to legal proceedings which may cause the project completion to be delayed. | Mitigate – Concretely define contract terms to prevent ambiguity. |
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| EG-3: Land Acquisition | Land Acquisition: Legal issues related to land acquisition for the PPP Project may cause project delays. These issues are mostly caused when public land is to be bought for construction. | Mitigate – Provide prompt compensation for affected parties. |
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| PM-7 Concession Period and Recovery | OP-3: Unsuitable Concession Period | Unsuitable Concession Period: If the concession period is not appropriate for revenue generation, it may affect the performance of a project concerning its concession period. | Mitigate-Set concession period with consideration of risks. |
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| CP-12: Third-Party Delay and Violation | Third-Party Delays and Violation: Issues caused by third parties such as NGOs, environmental bodies and so on may cause stay orders or other legal issues that can impact the concession period, by stopping the operation of the project. | Mitigate – Proactively manage and coordinate with external entities. |
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| EG-1: Act of God/Force Majeure | Act of God/Force Majeure: Unexpected phenomena such as floods, earthquakes, pandemics and so on may impact the generation of revenue, thus requiring an increase in the concession period. | Transfer – Transfer force majeure risks to third parties. |
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| PM-8 Defect Liability Period | EG-1: Act of God/Force Majeure | Act of God/Force Majeure: Unexpected phenomena such as floods, earthquakes, pandemics and so on may delay the defect liability period and thus affect the scheduled defect repair work and ultimately the handover of the PPP Project. | Transfer – Allocate responsibility for force majeure events in contracts. |
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| G-2: Inconsistency in governmental policies and regulations | Inconsistency in Governmental Policies and Regulations: Changing PPP Policies and political situations, may cause the project to halt during its defect liability period thus ultimately affecting the performance of a project for its defect liability period. | Avoid – Improve coordination and communication among government entities. |
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| CP-12: Third–Party Delays and Violation | Third-Party Delays and Violations: Third – parties such as NGOs and regulating bodies may intervene and cause delays during the defect liability period. | Mitigate – Take proactive steps to minimise impact of third-party delays. |
| 9. | KPI3 Quality | PM-9 Quality Specified vs Actual Quality | EG-1: Act of God/Force Majeure | Act of God/Force Majeure: Unexpected phenomena such as floods, earthquakes, pandemics and so on may cause damages on-site which ultimately affect the quality of the project. | Transfer – Utilise insurance policies or contractual agreements to transfer the risk of Act of God events to external parties. |
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| CP-1: Improper project feasibility study and planning | Improper Planning: If a project is not properly planned during the initial stages, it may lead to quality issues later on, which may deviate from the promised level of quality. | Avoid – Thorough project planning, stakeholder engagement and risk assessment to ensure quality control procedures. |
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| PM-10 Health and Safety | CP-9: Accidents on-site and Injuries | Accidents On-site and Injuries: If the number of accidents and injuries that happened on–site is more, then it affects the Health and Safety performance of the project. Such issues indicate that proper safety provisions were not undertaken on-site. | Avoid – Implement strict safety procedures, provide thorough training and conduct routine site inspections. |
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| PM-11 Defects and Problems | OP-5: Poor O&M of Project | Poor O&M of Project: If a PPP project is not properly maintained during its O&M period, it may lead to defects and problem issues after handover. | Avoid – Establish strong O&M protocols, select qualified service providers and conduct routine inspections. |
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| PM-12 Transparency | CP-8: Documentation Errors | Documentation Error: If documents are not properly maintained and are altered to change cost, schedule, or quality issues, it can lead to transparency problems and ultimately affect the quality of the project, as issues cannot be immediately communicated to relevant bodies due to lack of paperwork. | Avoid – Use standardised templates, stringent quality control and review systems for accurate documentation. |
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| PM-13 Effectiveness | EG-1: Act of God/Force Majeure | Act of God/Force Majeure: Unexpected phenomenon such as floods, earthquakes, pandemics and so on may cause damages on-site which ultimately affect the ability of the project to meet the required standards and goals. | Reduce – Implement early risk identification, contingency planning, resilient design practices and obtain insurance coverage. |
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| CP-1: Improper Project Feasibility and Planning | Improper Project Feasibility and Planning If a project is not properly planned during the initial stages, it may lead to quality issues later on. Moreover, if a proper feasibility study is not done, it can lead to reduced profitability of a PPP Project which is a major goal for all parties involved. | Mitigate – Conduct thorough risk assessments, engage experienced consultants and incorporate stakeholder input for realistic objectives. |
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| PM-14 Efficiency | EG-1: Act of God/Force Majeure | Act of God/Force Majeure: Unexpected phenomena such as floods, earthquakes, pandemics and so on may cause damages on-site which ultimately affect the quality of the project and thus make the project inefficient. | Reduce-Implement early risk identification, contingency planning and resilient design practices. |
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| CP-1: Improper Project Feasibility and Planning | Improper Planning: If the project is not properly planned during the initial stages, it may lead to quality issues later on and improper feasibility study impacts revenue generation which leads to inefficiency concerning both quality and cost. | Mitigate – Conduct thorough risk assessments, engage experienced consultants and adapt plans to ensure realistic objectives. |
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| PM-15 Communication | CP-8: Documentation Errors | Documentation Errors: If documents are not properly maintained or are altered by a third party, it can lead to communication issues between stakeholders. | Avoid – Implement standardised documentation processes, conduct quality checks and encourage accurate information sharing. |
| SH-2: Communication Issues | Communication Issues: Experience, work ethic, ambiguities, contract disputes and so on can cause communication issues and may cause an increase in change orders, which can hinder the quality of the project during the execution phase. | Mitigate – Foster open communication, stakeholder engagement and efficient project management for improved understanding. |
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| PM-16 Procurement | F-9: Inflation and inaccurate estimate of market demand | Inflation: An increase in inflation can cause budget constraints which may cause the procuring bodies to compromise on quality to maintain project costs. | Accept – Proactive monitoring of cost fluctuations, transparent price adjustment negotiations and contract clauses for inflation. |
| EG-1: Act of God/Force Majeure | Act of God/Force Majeure: Unexpected phenomena such as floods, earthquakes, pandemics and so on can put economic constraints on services and goods, resulting in increased prices. Procuring bodies may have to compromise on quality to maintain project costs. | Transfer – Utilise expertise, resilient design and budget adjustments to mitigate the impact of force majeure events. |
