Determining critical risk factors affecting public‐private partnership waste‐to‐energy incineration projects in China

Abstract

As the most effective way to manage the surge in municipal solid waste (MSW) and global energy issues, waste‐to‐energy (WTE) incineration plants have been actively promoted by the Chinese government, and the public‐private partnership (PPP) procurement model is widely used to improve management efficiency. However, risk events have occurred frequently in this industry due to a lack of practice experience and to poor risk management. To investigate the potential risk factors in PPP WTE incineration projects in China, this paper aims to identify critical risk factors by assessing their severity and occurrence probability. Opinions of industry experts were collected via an empirical questionnaire survey. The respondents were invited to rate a total of 18 risk factors that impact the success of PPP WTE projects as gleaned from previous research. The overall results ranked risk factors based on risk impact and showed that public opposition, government decision making, defective legal and regulatory systems, environmental pollution, lack of supporting infrastructure, and government credit are the top six risk factors affecting the sustainable development of PPP WTE incineration projects. In addition, the causes and consequences of each critical risk factor are comprehensively analyzed. Lastly, practical and managerial implications are analyzed in terms of their management of these critical risks. The originality of this research lies in thoroughly identifying potential implicit risk factors according to the current social background using an empirical questionnaire survey based on case study findings. The results of this study are expected to improve risk management and facilitate the sustainable development of the PPP WTE incineration industry in China.

Exploring the underlying relationship among risks in BOT transportation projects in developing countries: the case of Vietnam

“…The third part queried respondents about the probability of occurrence (P) and the severity of impact (I) of the 40 risks related to BOT transportation projects. A five-point Likert scale was provided to respondents for the rating exercise, where 1 – very low, 2 – low, 3 – average, 4 – high and 5 – very high, which is similarly used in previous related studies (Chan et al , 2010; Patel et al , 2019; Cui et al , 2019).…”

Risk factors and mitigation measures in public-private water sector partnerships: lessons from the Asutifi North District, Ghana

“…The government's failure to honor credit guarantees extended to lenders for loans contracted by the private partner in PPP arrangements constitutes government credit risks. This risk also applies to the unreasonable assurances given by governments, sometimes about the prospects and profitability of proposed PPP projects, to enhance their attractiveness but with such promises not being guaranteed in the medium to long term (Xu et al 2011;Cui et al 2019).…”

“…Legal risks occur when there is an absence of a robust and dedicated legal system to handle PPP contracts and related cases (Xu et al 2011;Cui et al 2019). Currently, there are no court systems dedicated solely to handling PPP contracts in Ghana; however, the commercial courts that are equipped to handle business-related disputes could perform similar functions should contract or partnership-related disputes arise.…”

Risk Analysis of Public–Private Partnership Waste-to-Energy Incineration Projects from the Perspective of Rural Revitalization

“…Most WTE incineration projects were delivered through a PPP scheme in China. It was reported that more than 70% of WTE incineration projects were operated in a PPP scheme [35]. Moreover, 108 PPP WTE incineration projects were deployed from 2012 to 2016, with a total investment of CNY (Chinese Yuan) 489 billion [35,36].…”

“…It was reported that more than 70% of WTE incineration projects were operated in a PPP scheme [35]. Moreover, 108 PPP WTE incineration projects were deployed from 2012 to 2016, with a total investment of CNY (Chinese Yuan) 489 billion [35,36]. Meanwhile, there are a total of 111 WTE incineration projects deployed, as shown in Figure 1.…”