www.theinternationaljournal.org > RJSSM: Volume: 06, Number: 12, April 2017 Page 5 Analysis of Critical Risk Factors in implementation of Public Private Partnership road projects in A.P Dr Swati Mathur Asst. Prof., Centre for Management Studies NALSAR, Shamirpet Abstract Public Private Partnerships(PPP) has gained importance for providing an adequate and sustained support for financing the road projects in India. The paper tries to identify and analyse the critical risk factors in implementation of PPP road projects in A.P and ranks them accordingly based on volatility adjusted mean to assess their relative importance to the project viability. Analytical Hierarchy Process is conducted to find the contribution of each risk to the overall risks affecting a PPP project. It is found that land acquisition risk and cost overrun risk have an average weightage of 20% to the overall risk followed by fluctuating traffic risk. ANOVA was also used to check the difference in perception of different risks between the implementers of the project. The study concludes that there is no significant difference in perception of the risks between the implementers of the project. The critical risk factors identified can help in selecting/ evaluating the projects for the government as well as the private partners. Keywords: Public Private Partnership (PPP), Critical Risk Factors Motivation of Study Government of India has adopted the Public Private Partnership (PPP) mode to promote infrastructure projects due to several reasons, the main reason being huge funding requirements and also the constraints in realizing the same. The project requires formulating a complex financial package which involves financial viability, addressing contractual agreement and risk allocation among the two parties to achieve successful financing. Both central and state governments are aiming to use PPP more intensively to meet the gaps in provision of basic infrastructure services in the road sector. There has been considerable innovation in the design of these, with different structures being developed to attract private participation, but at the same time there are islands of progress. There are numerous reports and guidelines published by the GOI on PPP’s but very little research in India has been done on the structuring, cost aspects and efficient monitoring of performance. With the GOI and the Govt. of A.P stressing the need for growth in infrastructure for sustainable development, it is considered an apt time to analyze the critical risk factors involved in the implementation of public private road projects in A.P . There are a number of risk factors throughout the lifecycle of the project which will determine the success of the project in terms of meeting its objective of cost, time and quality. The identification of these risk factors especially in A.P and the findings of the study will be valuable to the government as well as the private companies engaged in PPP projects. Introduction Roads are the dominant form of surface transport in India and national highways account for forty percent of the traffic and there is a growing gap between the demand and supply of road infrastructure. An extensive expansion of road network is needed to fill this gap. Moreover development of the economy also requires a better road infrastructure (Kumar et al 2007). It is in this context PPP (Public Private Partnership )mode has gained importance for providing an adequate and sustained support for financing the road projects. (Ministry of Road Transport & Highways). Both central and state governments are aiming to use PPP more intensively to meet the gaps in provision of basic infrastructure services in the road sector. PPP is long term contractual agreement between the government and private sector for specially targeted towards financing, designing, implementing, and operating infrastructure facilities services that were traditionally provided by the public sector. This collaboration or partnership is built on the expertise of each partner that meets clearly defined public needs through appropriate allocation of resources, risks, rewards and responsibilities. The PPP is expected to result in better value