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http://dx.doi.org/10.5392/JKCA.2017.17.05.574

Risk Evaluation of the Project Finance for Overseas Independent Power Projects Using a Fuzzy Multi-Criteria Decision-Making Analysis  

Hur, Kyong-Goo (서울종합과학대학원)
Kim, Joo-Nam (서울종합과학대학원)
Publication Information
The Journal of the Korea Contents Association / v.17, no.5, 2017 , pp. 574-590 More about this Journal
Abstract
The purpose of this paper is the provision of a decision-making tool for developers to identify the project risks for under-consideration overseas independent power projects (IPPs), and to analyze the priority and importance weights of the risks through the employment of a fuzzy multi-criteria decision-making (MCDM) approach. A fuzzy MCDM is the calculation method for which the imprecision of each respondent's unique opinion is considered. Through the extensive literature surveys that were conducted for this paper, eight major project finance (PF) risks have been derived credit risk, completion risk, market risk, fuel risk, operating risk, financial risk, environmental risk, and force majeure. The empirical results show that the market risk is the most important risk factor in terms of overseas IPPs, thereby confirming that the long-term power purchase agreement (PPA) guarantee of the host country is one of the most important corresponding factors for the PF.
Keywords
Risk Evaluation; Project Risks; Overseas Independent Power Projects; Fuzzy; Project Financing;
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