Jump to Content Jump to Main Navigation
International Project Finance, 3rd Edition edited by Dewar, John (14th August 2019)

4 Project Risks

John Dewar, Suzanne Szczetnikowicz, Jonathan Roberts

From: International Project Finance (3rd Edition)

Edited By: John Dewar

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2015. All Rights Reserved.date: 14 November 2019

Subject(s):
Credit risk — Capital markets — Financial stability

This chapter discusses various project risks (e.g. completion risk, operating risk, currency risk, political risk, etc.). The business of project financing is founded upon the identification, assessment, allocation, negotiation, and management of the risks associated with a particular project. Indeed, as project finance lenders look to the revenues generated by the operation of the financed project for the source of funds from which that financing will be repaid, the whole basis for project financing revolves around an understanding of the future project revenues and the impact of various risks upon them. Projects face a variety of risks, and not all of these risks can be easily identified, mitigated, or contracted away. However, such risks can be assessed, allocated, and managed so that a project is commercially reasonable. The first step is to identify the material risks and the second is to decide how they should be addressed.

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.