Effect of Risk Factors on Transnational Public Private Partnership Performance Time: A Case Study of Lagos State

Abstract

The time (completion period) of the constructed mega infrastructure project has been considered a necessary measure for the sustainability of projects. Studies on effect of risk factors affecting Public Private Partnership (PPP) project performance have used various techniques and methods to explain the relationships between particular variables. The use of TPPP is an innovative way to establish transnational cooperation and global support. However, despite the array of benefits of Transnational Public Private Partnership (TPPP) project, risk factors still influence the collaborative adoption of TPPP project time performance, due to its uniqueness and complexity, and thus hinder the performance of the project. The aim of the research is to assess the effect of risk factors on TPPP time Performance. Data for the research were obtained through quantitative methods approach. Well-Structured Questionnaires were selfadministered on five different stakeholders; comprising public sector authorities (i.e., ministries, department, and agencies), shareholders, sponsors/financiers/banks, consultants, and contractors involved in the TPPP projects in Nigeria. 63% response rate was achieved and used for the analysis. The Partial Least Square-Structural Equation Model (PLS-SEM) technique was used to assess both the measurement and structural models. PLS SEM has become a standard approach for analyzing complex inter-relationship between observed and latent variables. The study shows that economic and financial risk, legal risk, technology risk and operation risk have strong effect on TPPP project time performance with effect size of 0.36, 0.352, 0.420, and 0.371 respectively, while construction risk, cooperation with public and private risk, nature/environmental risk have moderate effect on TPPP project time performance with effective size of 0.177, 0.26, and 0.310 respectively, while political risk, and tariff risk has a weak effect on TPPP project time performance with effect size of 0.039 and 0.020 respectively. The findings of this study revealed that the R 2 value of the model was scored at 0.555, which means that the nine exogenous latent constructs collectively explained 55.5% of the variance in TPPP project time performance. The Goodness-of-Fit of the model was 0.407. Economic and financial risk, legal risk, technology risk and operation risk factors all have strong effect on TPPP project time performance. This study determined that better planning, monitoring and evaluation should be developed to better address and control the time loss by decision-makers, project managers as well as contractors, and stakeholders in the Nigerian TPPP should develop strategies to eliminate these risks towards ensuring successful implementation of TPPPs in Nigeria.