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

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  • Xu, Yelin
  • Chan, Albert P.C.
  • Xia, Bo
  • Qian, Queena K.
  • Liu, Yong
  • Peng, Yi

Abstract

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.

Suggested Citation

  • Xu, Yelin & Chan, Albert P.C. & Xia, Bo & Qian, Queena K. & Liu, Yong & Peng, Yi, 2015. "Critical risk factors affecting the implementation of PPP waste-to-energy projects in China," Applied Energy, Elsevier, vol. 158(C), pages 403-411.
    • Handle: RePEc:eee:appene:v:158:y:2015:i:c:p:403-411
    DOI: 10.1016/j.apenergy.2015.08.043
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    11. Anwar, Ahsan & Sharif, Arshian & Fatima, Saba & Ahmad, Paiman & Sinha, Avik & Khan, Syed Abdul Rehman & Jermsittiparsert, Kittisak, 2021. "The asymmetric effect of public private partnership investment on transport CO2 emission in China: Evidence from quantile ARDL approach," MPRA Paper 108160, University Library of Munich, Germany, revised 2021.
    12. Libiao Bai & Yi Li & Qiang Du & Yadan Xu, 2017. "A Fuzzy Comprehensive Evaluation Model for Sustainability Risk Evaluation of PPP Projects," Sustainability, MDPI, vol. 9(10), pages 1-22, October.
    13. Giovanna Andrea Pinilla‐De La Cruz & Rodrigo Rabetino & Jussi Kantola, 2022. "Unveiling the shades of partnerships for the energy transition and sustainable development: Connecting public–private partnerships and emerging hybrid schemes," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(5), pages 1370-1386, October.
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    15. Taron, Avinandan & Majumder, A. & Bodach, Susanne & Agbefu, Dzifa, 2023. "Public-private partnerships for the circular bio-economy in the Global South: lessons learned," IWMI Reports 339137, International Water Management Institute.
    16. Wu, Yunna & Song, Zixin & Li, Lingwenying & Xu, Ruhang, 2018. "Risk management of public-private partnership charging infrastructure projects in China based on a three-dimension framework," Energy, Elsevier, vol. 165(PA), pages 1089-1101.
    17. Taron, Avinandan & Majumder, A. & Bodach, Susanne & Agbefu, Dzifa, 2023. "Public-private partnerships for the circular bio-economy in the Global South: lessons learned," Resource Recovery and Reuse Series H052155, International Water Management Institute.
    18. Xiaoyan Jiang & Kun Lu & Bo Xia & Yong Liu & Caiyun Cui, 2019. "Identifying Significant Risks and Analyzing Risk Relationship for Construction PPP Projects in China Using Integrated FISM-MICMAC Approach," Sustainability, MDPI, vol. 11(19), pages 1-31, September.
    19. Taron, Avinandan & Majumder, A. & Bodach, Susanne & Agbefu, Dzifa, 2023. "Public-private partnerships for the circular bio-economy in the Global South: lessons learned," IWMI Books, Reports H052155, International Water Management Institute.
    20. Yan Wang & Yujie Wang & Xiuyu Wu & Jiwang Li, 2020. "Exploring the Risk Factors of Infrastructure PPP Projects for Sustainable Delivery: A Social Network Perspective," Sustainability, MDPI, vol. 12(10), pages 1-26, May.
    21. Bowen Tang & Yuanzhang Sun & Nan Zhou & Bo Shen, 2019. "Sustainable Development of Power Retailers and Industrial Parks in China’s Belt and Road Initiative," Sustainability, MDPI, vol. 11(19), pages 1-19, September.
    22. Rehman, Obaid ur & Ali, Yousaf & Sabir, Muhammad, 2022. "Risk assessment and mitigation for electric power sectors: A developing country's perspective," International Journal of Critical Infrastructure Protection, Elsevier, vol. 36(C).
    23. Pengcheng Xiang & Fuyuan Jia & Xiaohui Li, 2018. "Critical Behavioral Risk Factors among Principal Participants in the Chinese Construction Industry," Sustainability, MDPI, vol. 10(9), pages 1-22, September.

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