On the Financial and Risk Analysis of Waste Treatment Projects in Greece

On the Financial and Risk Analysis of Waste Treatment Projects in Greece

A.C. Karmperis I.P. Tatsiopoulos A. Sotirchos K. Aravossis  

Sector of Industrial Management and Operational Research, School of Mechanical Engineering, National Technical University of Athens, Greece.

Page: 
252-263
|
DOI: 
https://doi.org/10.2495/SDP-V7-N2-252-263
Received: 
N/A
|
Accepted: 
N/A
|
Published: 
30 June 2012
| Citation

OPEN ACCESS

Abstract: 

Risk assessment is one of the most critical procedures for the evaluation of environmental projects. Over the last decades, there are several methods and techniques developed in the risk assessment literature establishing the quantitative risk analysis of waste treatment projects. Herein, the authors focus on the correlation between the financial sustainability evaluation and the quantitative risk analysis of waste treatment projects, which are implemented with Build–Operate–Transfer contracts in Greece. Particularly, the authors use a formula for the investor’s profit rate computation, which corresponds in positive cash flows throughout the project’s operational phase and ensures the partnership’s financial sustainability. Documentation of the specific formula is achieved through the quantitative risk analysis of a waste treatment project, where the uncertainty of the project’s financial sustainability is analyzed and useful conclusions are discussed.

Keywords: 

Build–Operate–Transfer, fi nancial sustainability, Monte Carlo simulation, quantitative risk analysis, waste treatment projects.

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