Burchett, J F and Tummala, V M R (1998) The application of the risk management process in capital investment decisions for EHV transmission line projects. Construction Management and Economics, 16(2), pp. 235-244. ISSN 01446193
Abstract
This paper reviews the viability of applying a risk management process to enhance capital investment decisions, when planning the construction of an extra-high voltage (EHV) overhead transmission line project that could be designed and built in the next 10 years by China Light & Power Company Limited, Hong Kong. Different project proposals will be considered for this transmission line as well as different completion dates. Each scenario will be investigated to determine the rate of return and expected cost to customer, using the net present value model. The lowest 'cost to customer' approach would be the normal criterion for project selection, assuming all proposals are technically viable and compatible with Hong Kong Government infrastructure plans.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | capital investment decision; extra-high voltage; transmission line; risk management process |
| Index terms: | net present value, Hong Kong, risk management, project selection, capital investment, proposal, China, high voltage |
| Subjects: | economic analysis, project planning, electrical systems, value management, risk assessment, Geography |
| Topics: | Engineering Principles, Geographical Context, Project Management, Business Strategy, Risk Management |
| Descriptive scope: | 2 PC |
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