Critical risk factors affecting the implementation of PPP waste-to-energy projects in China

Xu, Yelin, Chan, Albert P.C., Xia, Bo, Qian, Queena, Liu, Yong, & Peng, Yi (2015) Critical risk factors affecting the implementation of PPP waste-to-energy projects in China. Applied Energy, 158, pp. 403-411.

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Since 2003, Mainland China has been promoting the public–private partnership (PPP) procurement model in the waste-to-energy incineration sector to reduce the waste burying rate and improve environmental quality. Five critical risk factors (CRFs) that affect the construction and operation of waste-to-energy incineration projects have been identified from real-life risk events of 14 PPP waste-to-energy incineration plants through content analysis. These risk factors are insufficient waste supply, disposal of non-licensed waste, environmental risk, payment risk, and lack of supporting infrastructure. A recently completed PPP waste-to-energy incineration plant, the Shanghai Tianma project, was investigated to learn from the effective management of CRFs. First-hand data about the Shanghai Tianma project was collected, with a focus on project negotiation and concession agreement. Lessons learned about risk management were acquired. This paper presents a detailed study of the contractual structure, risk sharing scheme, risk response measures to CRFs, and project transfer of a PPP project. The study results will provide governments with management implications to prepare equitable concession agreements and benefit private investors by effectively mitigating and managing risks in future PPP waste-to-energy incineration projects.

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ID Code: 88057
Item Type: Journal Article
Refereed: Yes
Keywords: Public–private partnership (PPP), Waste-to-energy incineration plant, Risk management, Project transfer, China
DOI: 10.1016/j.apenergy.2015.08.043
ISSN: 0306-2619
Subjects: Australian and New Zealand Standard Research Classification > BUILT ENVIRONMENT AND DESIGN (120000) > BUILDING (120200)
Divisions: Current > Schools > School of Civil Engineering & Built Environment
Current > QUT Faculties and Divisions > Science & Engineering Faculty
  • NNSFC/71471166
Copyright Owner: Copyright 2015 Elsevier
Copyright Statement: Licensed under the Creative Commons Attribution; Non-Commercial; No-Derivatives 4.0 International. DOI: 10.1016/j.apenergy.2015.08.043
Deposited On: 07 Oct 2015 23:15
Last Modified: 11 Oct 2015 05:12

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