John Dewar, Oliver IrwinFrom: International Project Finance: Law and Practice (2nd Edition)
Edited By: John Dewar
This chapter considersthe identification, assessment, allocation, negotiation, and management of the risks associated with a particular project(such as delay risk, cost overruns, technology risk, off-take risk, revenue risk, operating risk, supply risk, currency risk, political risk and environmental and social risk). A project’s value is based principally on its ability to generate revenue during its operating phase. Both the sponsors and the lenders need to be able to effectively identify and manage the risks associated with that project. This chapter also identifies how those risks can be managed and minimized. In addition the chapter contains an analysis under English law of the possible impact on risk allocation in a project arising from the effects of any supervening event.