Fuzzy financial risk analysis of net-zero transitions in public–private partnership projects in Ghana
Abstract
Purpose
Among the topmost challenges, limiting the transformation of conventional public–private partnership (PPP) projects to meet net-zero targets is financial risk. This challenge is more prevalent in PPP projects in developing economies like Ghana, where financial investments have dwindled due to the recent COVID-19 recession. This paper aims to assess the key financial challenges in transitioning to net-zero PPP projects in Ghana.
Design/methodology/approach
The research method process was set as follows. First, a review of the literature to identify the major financial risks from journal articles, project reports and documents was undertaken, followed by questionnaire development and collection of data. Finally, the analysis of 134 questionnaire data was examined with the fuzzy synthetic evaluation.
Findings
The results indicate that the following financial challenges could hinder the transition to net-zero PPP projects in the country: increasing borrowing charges to build net-zero PPP projects due to the global covid-economic recession, poor project financial management, unstable local capital market and excessive labour, health and safety costs.
Research limitations/implications
Although, the study was conducted in Ghana, a country in the Sub-Saharan African region, the outcomes have significant impacts for similar developing countries in research investigations into the problem.
Practical implications
Assistance is provided in this study for PPP project practitioners in identifying the key financial challenges and possible strategies to mitigate them.
Originality/value
Towards net-zero sustainability, this study highlights the crucial financial barriers to overcome in the rapid transition to climate change and zero carbon solutions in PPP projects.
Keywords
Acknowledgements
This article forms part of the doctoral thesis of the first author at Western Sydney University. A very thank you to the editors, anonymous reviewers and all the participants in the data collection of this article.
Citation
Akomea-Frimpong, I., Jin, X. and Osei-Kyei, R. (2024), "Fuzzy financial risk analysis of net-zero transitions in public–private partnership projects in Ghana", Journal of Facilities Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JFM-01-2024-0012
Publisher
:Emerald Publishing Limited
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