The public-private partnership (PPP) arrangements require the optimization of risk allocation between
the public and private sectors in order to achieve the best net present value (NPV). Many researchers
mentioned that the risk events of a PPP infrastructure projects are interdependent over project life cycle.
Sterman (1992) stated that a large-scale construction project that is complex and has highly dynamic
and interdependent risks and uncertainties over long-term project life cycle.