Jump to Content Jump to Main Navigation

You are looking at 12 of 2 results

Contributor: Taufatofua, Chris x
Clear All

5 Allocation of Risks in Project Documentation »

John Dewar, Chris Taufatofua
From: International Project Finance: Law and Practice (2nd Edition)
Edited By: John Dewar
Achieving the optimal risk allocation in the project document structure is critical to the successful delivery of any project. This chapter outlines the key considerations that help determine how the project risks are typically approached in the context of the key project documents, including concession agreements, construction contracts, offtake agreements, feedstock supply agreements, and operation and maintenance agreements. Particular focus is given to the need to achieve a project document structure and risk allocation that is ‘bankable’, while emphasizing the importance of a risk allocation that strikes a balance between (i) identifying the most appropriate counterparty to manage a particular risk as well as (ii) ensuring such counterparty is appropriately incentivized to manage such risk.

5 Allocation of Risks in Project Documentation »

John Dewar, Chris Taufatofua
From: International Project Finance (3rd Edition)
Edited By: John Dewar
This chapter discusses the allocation of risks within the project’s contractual architecture. Stakeholders and potential stakeholders in a project will typically approach risk allocation from one of two perspectives. The first perspective will be as a potential contract counterparty negotiating its involvement in the project document structure—i.e. such a counterparty will be directly involved in the risk allocation process itself. The second perspective will be as a potential lender (or sometimes equity investor) performing due diligence to assess the risk allocation under an existing or proposed project document structure so as to determine whether the project is bankable (or, in the case of a potential equity investor, whether the risk allocation justifies the making of an investment in the project).