Significant financial and economic risk factors in coastal land reclamation projects

Abstract

The demand for land required for construction and development has been rapidly increasing over the past 30 years in the global context because of population growth, especially in coastal cities. Therefore, coastal land reclamation (CLR) has drawn attention both internationally and regionally. However, CLR projects are complex and costly and, therefore, are often associated with numerous risks. Although risk management in CLR projects has been the focus of few past studies, they have not specifically focused on financial and economic risks. This study, therefore, aimed to identify the most significant financial and economic risk factors present in CLR projects to enable the management of those risks. The required empirical data were collected by conducting a two-round Delphi survey, comprising expert interviews and a questionnaire survey. The collected data were analysed using content and descriptive statistics. The results revealed 13 significant financial and economic risk factors of CLR projects. Quality of sand and soil was identified as the most important risk factor of CLR projects. Delayed payment, unpredictable safety and security conditions of the country, dredging volume and defaulting contractors and subcontractors were identified in the next top four ranking in this study.