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

Abstract

In China, more and more waste-to-energy (WTE) incineration plants are being delivered through public–private partnership (PPP) schemes in rural areas, which are focused on rural revitalization. These can not only deal with the ever-increasing solid waste but also provide renewable energy and thus benefit local societies. However, they usually endure a lot of risks due to long concession periods and complex contractual relationships. This research investigates the risk management of PPP WTE incineration projects from the perspective of rural revitalization. First, a preliminary list of 36 risks was derived based on a literature review. Second, a focused group discussion with eight experts was held to obtain the final list of 36 risk factors, taking into account rural revitalization. Third, a structured questionnaire survey was conducted to consult the risk frequency and risk severity. A total of 100 valid questionaries were collected. Finally, risk analysis and discussion were provided on the basis of the survey. The top 10 risks are rural appearance, payment risk, local employment, local economic development, local government succession, operation cost overrun, waste supply, construction cost overrun, revenue risk and price change risk. It indicates that (1) PPP WTE incineration projects can effectively promote rural development; (2) government authorities play a significant role in the sustainable development of PPP WTE incineration projects; and (3) the risk preference of rural PPP WTE incineration projects is social, economic and environmental risks.