A Study On Risk Management Of Engineering Projects In Africa In The EPC Model

Under the cooperation initiative of the "new silk road economic belt" and the "21st century maritime silk road"(referred to as "One Belt And One Road"),China’s investment in the countries along the "One Belt And One Road" has been increasing,and Chinese enterprises have been expanding overseas markets and undertaking projects around the world.With more and more overseas investment,the project risk of overseas investment is quite different from that of domestic projects,especially international EPC general contracting projects,which are characterized by large investment scale,long project cycle,fixed investment amount,etc.,leading to high project risk and lower enterprise benefit.In order to maximize the risk of avoiding international projects,it is urgent to study the risk management of international projects,so as to reduce the economic and reputation losses to EPC general contractors.The contracting market in Africa brings opportunities to Chinese international engineering contractors,but African EPC international projects face special challenges in the region,which requires EPC contractors to have a clear understanding of the risks of international EPC projects in Africa.And put forward specific countermeasures against various project risks.Based on the study and summary of literature,this paper summarizes the risk connotation and characteristics of international general contracting projects,and analyzes the risk identification and management of international EPC projects in depth.Through Delphi method,the project risk is identified from the macro aspect of general contracting,the enterprise level and the project level,the risk list of African projects is determined,and the accuracy of the list is checked.By questionnaire,the risk evaluation index system of African EPC project is compiled from six aspects: political risk,economic risk,social risk,natural risk,management risk and technical risk.Then,the risk evaluation model is constructed by AHP.According to the results of risk evaluation,risk countermeasures are put forward from four aspects: risk aversion,risk transfer,risk control and risk retention.Finally,taking the Angolan EPC project as the research object,the risk identification is carried out from the angles of external and internal risk,and the risk evaluation index system is built.After comparing the influence degree of each index by 50 experts,the weight of AHP risk factors is determined.Through sorting and analyzing the risk factors,it is concluded that the first type of external risk includes changeable government policy,backward local economy and complex geological conditions of construction.According to the main risk factors,the risk response measures are put forward.The innovative significance of this paper lies in that,by analyzing and summarizing a specific EPC project in Africa,project risks faced by EPC engineering projects in Africa and corresponding measures can be obtained,providing certain reference significance for risk management of EPC engineering projects in Africa.