Research On Investment Risk Management Of Overseas Hydropower Projects

With the global economic integration and the domestic market entering the Red Sea,overseas investment as the core of the "go global" strategy and an important way to implement the "Belt and Road" initiative,a large number of domestic power companies choose to enter the international market.Advancing the global development strategy,overseas business has developed rapidly.The overseas investment environment and transnational management are inherently complex.Most hydropower investment targets are limited to Africa,Southeast Asia,and other regions.The risks are significantly higher than domestic and more uncontrollable,especially the hydropower projects with large investment scale,long construction cycle,many stakeholders and complex contract structures.And because domestic companies started late in the field of overseas hydropower project investment,most of them lack systematic and complete investment risk management capabilities,and often face resistance in the process of overseas investment.How to do a good job of managing the investment risks of overseas hydropower projects and improving investment efficiency has become a major problem faced by most energy and power EnterprisesIn this paper,from the perspective of investors,taking overseas hydropower projects as the research object,based on the theoretical research of overseas investment risk management,combined with the characteristics of overseas hydropower project investment,the research methods of general investment risk management are given,and universal countermeasures are put forward.This article focuses on the external macro environment,industry environment,and internal investment management environment.9 types of investment risks for overseas hydropower stations were identified: political risk,economic risk,social risk,natural risk,industry risk,investment decision risk,management risk,fiscal and tax risk,and financing risk.The basis of risk identification is quantitative risk assessment,the use of analytic hierarchy process to empower risk indicators,and comprehensive evaluation of investment risk by fuzzy comprehensive evaluation method.Then from the enterprise level,the corresponding investment risk response strategies and measures are proposed.Finally,this paper combines the case of K hydropower station investment project in Pakistan to apply the research results,and intends to solve the actual investment risk management problem.