Regulatory and Political Risks
All major projects have political aspects (§11.2). The Project Company may therefore be subject to political risks relating to the project’s presence in a particular country and its relationship with the Host Government, rather than to the more general commercial and macro-economic risk aspects of the project covered in Chapter 9 and Chapter 10. These political risks are discussed in detail in this chapter.
There are two main areas of risk relating to government actions: firstly ‘regulatory’ or ‘change in law’ risks (§11.3), which affect all projects to some extent, and secondly ‘investment’ risks (§11.4), which mainly affect cross-border project investments, primarily in developing countries. Linked ...
Get Principles of Project Finance, 2nd Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
