Examining critical risk factors underpinning underperforming waste-to-energy public-private partnerships in Indonesia, Malaysia and Vietnam

Abstract

As Southeast Asian nations face increasing energy demands and waste generation concerns, states have adopted public-private partnership (PPP) models to drive Waste-to-Energy (WtE) infrastructure development. However, WtE PPPs have faced numerous issues, such as construction delays, insufficient regulatory frameworks, and operational issues. Thus, this paper examines: "What are the critical risk factors underpinning underperforming WtE PPPs in Indonesia, Malaysia, and Vietnam?" Given the high upfront investments and intangible costs of WtE PPPs, it is crucial to understand the factors influencing their performance, which can then inform policy decisions and improve project outcomes. Particularly, this paper extracted critical risk factors from three case studies of WtE PPPs: Jatibarang in Indonesia, Ladang Tanah Merah in Malaysia, and Soc Son in Vietnam. Findings from the case studies are classified into five significant risks: legal, social, construction, design, and operational risks across the PPPs’ life cycles. Altogether, this paper reveals nascent WtE adoption in Indonesia, Malaysia, and Vietnam, highlighting specific preventive and corrective measures to address underperformance.