Factors Influencing Demand of Service In Public Private Partnership Infrastructure Project: In the Proceedings of the International Engineering Conference on Environmental Design and Innovation (ZEC Environmental 2016), AL-Zaytoonah University, Amman, Jordan

Public Private Partnership (PPP) concessions have increasingly been used as a method to deliver infrastructure projects. However, the pervasive incidence of demand risk for the service provided has become an issue of concern and a considerable challenge which faces governments, concessionaires and the financial community. Demand is a function of several uncertain and dynamic factors which interact in a complex way. Demand changes with the changes in the surrounding environment (e.g. population and employment) and policy (e.g. user’s fee and alternative facilities conditions). Based on a comprehensive literature review, 17 factors which influence demand in PPP projects have been identified. A questionnaire survey targeting PPP projects stakeholders has been distributed to seek their viewpoints on the identified demand influencing factors. The statistical analysis of the questionnaire data shows that willingness to pay (WTP) is the most significant factor influencing demand in PPPs followed by quality of service and level of fee. The result of the factor analysis specified seven dimensions for the 17 demand influencing factors and determined which factors measure each of these dimensions. The results are of benefit to the concession contract parties as the results facilitate interpretations of demand variations by offering a meaningful grouping of demand influencing factors.