Abstract
Uncertainties associated with wastewater treatment plants inflows can lead to either undersized or oversized facilities. Such uncertainties are attributed to the deviation of actual development patterns from plans. Accordingly, a minimum-flow guarantee is a suitable risk mitigation strategy. This research proposes a guarantee evaluation algorithm, and a new stochastic model using real-options theory, in order to simulate the wastewater inflow to the wastewater treatment plant. A wastewater treatment plant in Egypt is examined as a case study. The results enable the monetary evaluation of contractual clauses relating to plant expansion and minimum-flow guarantee.
| Original language | English |
|---|---|
| Pages (from-to) | 121-133 |
| Number of pages | 13 |
| Journal | Utilities Policy |
| Volume | 53 |
| DOIs | |
| State | Published - Aug 2018 |
| Externally published | Yes |
Bibliographical note
Publisher Copyright:© 2018 Elsevier Ltd
Keywords
- Egypt
- Minimum flow guarantees
- Minimum revenue guarantees
- Public-private partnerships
- Real-options theory
- Risk mitigation
- Wastewater treatment plants
ASJC Scopus subject areas
- Business and International Management
- Transportation
- Sociology and Political Science
- Economics and Econometrics
- Economics, Econometrics and Finance (miscellaneous)
- General Energy
- General Economics, Econometrics and Finance
- Law
