Allocation of logistic risk-investment in public-private-partnership – use of fuzzy TOPSIS method

Abstract

Appropriate risk assessment related to the project, and then its distribution between partners is the core of cooperation in the framework of public-private partnership (PPP). Risk analysis for investment project in the PPP formula includes: preliminary identification of risks associated with the investment, preliminary assessment and forecast of probability of occurrence of risks in the recommended option of investment implementation, initial analysis of the distribution of risks between a public and private entity depending on the legal and organizational model adopted, including the determination of the appropriate separation between the parties to the contract. The article presents the possibility of using multicriteria methods, in particular fuzzy TOPSIS, for risk assessment and selection of the best contractor for a given project under PPP.