Date: 25 Feb 2011

Managing construction risks of AP1000 nuclear power plants in China

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Large and complex construction projects face risk from various sources and the successful completion of such projects depends on effective risk management. This study investigates the risk faced by Chinese firms participating in constructing AP1000 nuclear power plants in China. AP1000 nuclear reactors are new, Generation III+ reactors designed by Westinghouse and to be built first in China. The semi-structured interview approach is used to elicit information from experts involved in the AP1000 projects in China. Based on the interviews, various sources of risk are identified. In addition to general risks that megaprojects normally face, there are unique risks that arise from various sources such as technological, political, organizational, and individual personnel risks. Risk management strategies are proposed to manage general and unique risks identified in the study. The findings of this study would be helpful for Chinese companies involved in the construction of AP1000 nuclear power plants to mitigate the risks associated with the projects.