Risk analysis of public-private partnership waste to energy projects: A systematic literature review

¹ Master Program of Environmental Science, School of Postgraduate Studies, Diponegoro University, 50241 Semarang, Indonesia
² Department of Chemical Engineering, Faculty of Engineering, Diponegoro University
³ Department of Urban and Regional Planning, Faculty of Engineering, Diponegoro University

^* Corresponding author: arif.kurniaraharja@gmail.com

Abstract

Despite potential benefits, public-private partnership (PPP) waste-to-energy (WTE) projects face significant risks—technical, financial, environmental, and socio-political—that threaten their feasibility. Key risk factors include revenue uncertainty, government credit reliability, and public opposition. The study is designed as systematic literature review (SLR) with three-phase methodology: planning, conducting, and reporting. A total of 136 articles from 2014 to 2024 were included in the initial selection. After applying all the criteria from the review protocol, 19 final articles were retrieved. The review identifies financial, technical, environmental, and social risks and highlights the importance of advanced risk assessment models like the 2-Dimension Linguistic Environment and Cloud Model and Bayesian Analytics for better decision-making. Differences in risk perceptions among stakeholders—government, public, and private entities—are examined, emphasizing the need for collaboration and transparency. Effective management of financial and market risks, particularly in emerging economies, involves policy implementation, government guarantees, and comprehensive risk allocation frameworks. There needs to be cooperation, clear communication, and policy frameworks to manage these different concerns effectively, ensuring that PPP WTE projects succeed and remain sustainable.