Risk Evaluation and Mitigation Strategies for Chinese Investments in Overseas Public-Private Partnerships

Abstract

The thesis, grounded in the backdrop of the Belt and Road Initiative (BRI), a global development strategy launched by China in 2013, highlighted the critical role of PPPs in mobilizing private capital and expertise for infrastructure projects. It emphasized the need for careful planning, comprehensive risk assessment, and strong partnerships underpinned by mutual trust and a shared vision to overcome challenges presented by the global and complex nature of PPPs in the BRI context. These challenges include managing projects across multiple nations, navigating differences in legal and regulatory frameworks, disparities in economic development, and cross-cultural communication barriers. This research delved into various risk categories integral to the practicality of BRI-PPP projects, including political, economic, social, geographical, operational, technical, and legal risks. Significant emphasis was placed on political, economic, and social risks, while also acknowledging the importance of not underestimating technical risks and emergency planning strategies. The case study, analyzing five representative cases, illustrated the influence of varied risk factors and the importance of strategic alignment with local contexts, international relations, and comprehensive stakeholder engagement. Stakeholder Theory and Risk Management Theory was applied, bridging theoretical analysis with real-world implications and emphasizing these frameworks' utility in managing the diverse landscape of international PPP projects. This study offered a holistic approach that combined theoretical insights with practical applications, providing a strategic roadmap for stakeholders, practitioners, and policymakers engaged in international PPPs. It underscored the necessity of proficient management of political and economic uncertainties and addressed the significance of technical, operational, social, and environmental factors in project success. The result of this study contributed substantively to the body of knowledge in PPP risk management and proposed a paradigm for resilient and sustainable infrastructure development on a global scale.

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