Research On Risk Management Of Overseas EPC Hydropower Projects

It is stated by the Nineteenth National Congress report that,"we must insist on opening up for construction".At present,China is accelerating the construction following a new opening up pattern,promoting the "Belt and Road" initiative,creating an unprecedented international environment for enterprises to implement "going out"strategy.As one of the main forces of China's foreign engineering contracting projects,the scale of overseas hydropower projects is also growing,among which,EPC project remains the mainstream contracting mode.The risks of exporting EPC hydropower project is increasing,with the potential causes of multi-regional cooperation,wide expertise,long engineering cycle and high contractual fines.Moreover,there are great differences between overseas and traditional domestic markets,especially the conflicts out of political instability and cultural and religious differences.Above all,it is necessary to conduct risk management research on EPC projects of overseas hydropower stations.Based on the perspective of the general contractor of the EPC project,this paper put focus on the risk management research of the EPC project of overseas hydropower stations.First of all,this paper reviews the risk management theory,engineering risk management theory,EPC project risk management and related research on the risk of Sub-Saharan Africa countries through the analysis of the literature.Secondly,by analyzing the main characteristics of EPC projects of overseas hydropower stations,through the methods of literature review and expert interviews,the main risks are identified,including economic and financial risks,political risks,legal and regulatory risks,social risks,natural risks,technical risks and organizational management risks.The risky index evaluation system is established,the strategies and measures are put forward accordingly under the risk analysis and demonstration by using the AHP and the fuzzy evaluation method.Last but not least,combined with the EPC of the Republic of Congo X Hydropower Plant case analysis,the risk level of the projects obtained by the method of risk assessment system of the EPC project of the overseas hydropower plants.The corresponding measures are taken according to the risk level.This paper offers a reference to the risk assessment of overseas hydropower projects in Sub-Saharan Africa countries for domestic engineering enterprises.