Efficient risk transfer in PPP wastewater treatment projects

Shrestha, Asheem; Chan, Toong-Khuan; Aibinu, Ajibade A.; Chen, Chuan

doi:10.1016/j.jup.2017.03.003

Cited by 66 publications

(58 citation statements)

References 29 publications

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“…The PPP model has been widely used in many countries for different public infrastructure projects, such as highway projects, waste‐to‐energy programs, pension community construction projects, and wastewater treatment projects . Although different projects have different characteristics, they have some basic indicators for selecting partners in common.…”

Section: Methodsmentioning

confidence: 99%

Private‐sector partner selection for public‐private partnership projects of electric vehicle charging infrastructure

Zhang

Zhao

Kan³

2019

Energy Science & Engineering

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Public‐private partnership (PPP) models, which can mitigate the deflection of charging facilities, have been introduced for electric vehicle charging infrastructure (EVCI) projects. Private‐sector partner selection is a significant step to ensure the success of EVCI‐PPP projects, but it has been rarely studied. This paper therefore identifies selection criteria for private partners in EVCI‐PPP projects and assesses the alternatives using an extended multicriteria operation and compromise solution (VIKOR) method. A partner selection indicator system is established through three development processes, and the factors are categorized into five factor packages: basic ability, management ability, performance of previous performance and credit performance, performance of projects, and sustainable development. These factors include 22 subcriteria. An extended VIKOR‐based method incorporating an intuitionistic fuzzy set is developed to select an optimal private partner. A case study is used to verify the effectiveness and rationalization of the proposed approach. Three potential candidates, P1, P2, P3, are evaluated and ranked according to their evaluation scores, and the results show that P1 is the best partner solution. Relevant charging infrastructure project experience, technical level in charging facilities, and financing plan are the top three criteria for choosing appropriate partners for EVCI‐PPP projects. This study provides a comprehensive evaluation framework for the government to select suitable private‐sector partners to accelerate the sustainable development of charging facilities.

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Section: Methodsmentioning

confidence: 99%

Private‐sector partner selection for public‐private partnership projects of electric vehicle charging infrastructure

Zhang

Zhao

Kan³

2019

Energy Science & Engineering

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“…As central funding is unsustainable and likely to become less common in future, a balanced burden would be critical to maintain internal finance with "the polluter-pays" principle [22]. Also, it was proposed to introduce Public private partnerships (PPPs) in rural wastewater treatment, which required private sectors' ability to bare risks [23,24]. In other words, the reduced economic burden by suitably designed rural discharge limits, such as the resource recovery category, ones promoted balancing the rural-urban gap and lowering uncertainties and the risk of sustainable rural wastewater treatment.…”

Section: Economic Burden Comparison Of Urban and Rural Wastewater Trementioning

confidence: 99%

Imbalanced Development and Economic Burden for Urban and Rural Wastewater Treatment in China—Discharge Limit Legislation

Wang

Gong

2018

Sustainability

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Abstract:Water pollution control is a great challenge for China. Compared with urban regions, the wastewater treatment in rural areas is much undeveloped, which is highly related with the much delayed legislation for rural wastewater. Imbalanced urban-rural development and the economic burden of urban and rural wastewater treatment in China was investigated from the perspective of discharge limit legislation. For now, the national discharge limit for rural wastewater is still vacant, although the national discharge limit for urban wastewater had been released for more than ten years. Recently, local rural wastewater discharge limits from several provinces were released, however, based on quite different principles. Some categories emphasized environmental sensitivity with the discharge limit equal and were more strict than urban standards, while some focused on resource recovery for rural regions with loose discharge limits. This study compared the financial burden between rural and urban regions in 31 provinces under different discharge limit legislation conditions. It was revealed that the resources recovery category discharge principle helped to decrease the financial burden imbalance with a reduced Gini coefficient from 0.37 to 0.17. The reduced economic burden from the implementation of a suitably designed rural discharge limit promoted balancing the rural-urban gap and lowering uncertainties and risk of sustainable rural wastewater treatment. This study also revealed the urgency of rural water legislation and proposed development with a balanced financial burden for urban and rural residents under suitable discharge limits, providing a profound insight for environmental management with a focus on balanced urban-rural development for the policy-makers in developing countries.Keywords: discharge limits for rural and urban areas in China; economic burden; Gini coefficient Highlights •Rural areas lag behind urban areas in legislation for wastewater treatment • The current discharge limit legislation for rural regions of provinces in China was reviewed •The Gini coefficient revealed an imbalanced economic burden for urban and rural wastewater treatment • Discharge limits concerning resource recovery alleviated the imbalance.

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“…PPPs, in particular, represent fertile ground for such an examination since the potential conflicts between project and stakeholders-government agencies and private companies-are especially pernicious, given the large investment outlays involved and the extensively lengthy payback periods. Examination of this conflict, however, in PPP projects has not been widely considered [17]. While private enterprise, as builders and concessionaires of the project, and government, as procurers and custodians representing the interest of the community, will together aim to deliver a successful outcome, each party bears additional incentive to extract gains from the other as well as from the project itself.…”

Section: Introductionmentioning

confidence: 99%

“…One side may price the risk cheaply, while the other side, knowing the risk has been underestimated may let it go to them, even though they were better able to manage the risk [16]. That is, they save money by not sharing all they know, while endangering the project outcome [13,16,17]. So in essence, risk management within the context of PPP projects may have been largely overlooked [3,18].…”

Section: Introductionmentioning

confidence: 99%

A Principal-Agent Theory Perspective on PPP Risk Allocation

et al. 2019

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This study proposes a framework for the allocation of risk in public private partnerships (PPP) projects. Its contribution lies in the recognition and incorporation of risks introduced by project stakeholders, and as articulated by the principal-agent theory (PAT). The framework assesses risks and routes these risks to those parties best equipped to mitigate their impact on the project. This allocation of risk is facilitated by a thirteen-step process. The practical benefit of this study lies in outlining a clear, systematic method for allocating risk efficiently to both the government and private enterprise parties of the project. In so doing, risk mitigation can be expected to improve project performance, optimize stakeholder goals, and enhance sustainability objectives, including improved operational life-cycle efficiency and elevated social and community benefits.

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Efficient risk transfer in PPP wastewater treatment projects

Cited by 66 publications

References 29 publications

Private‐sector partner selection for public‐private partnership projects of electric vehicle charging infrastructure

Private‐sector partner selection for public‐private partnership projects of electric vehicle charging infrastructure

Imbalanced Development and Economic Burden for Urban and Rural Wastewater Treatment in China—Discharge Limit Legislation

A Principal-Agent Theory Perspective on PPP Risk Allocation

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