June 2002
Beginner
344 pages
11h 7m
English
Content preview from Principles of Project Finance
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Thus, the additional financial liability that Sponsors incur may become very
significant in the absence of an EPC Contract.
Furthermore, the definition of “completion” in such cases has to be carefully
considered. It usually involves not just physical completion of the project, but a
demonstrated ability to operate as projected over a sustained period of time.
§8.6 ENVIRONMENTAL RISKS
The environmental aspects of a project may raise various contractual, legal,
and wider political risks. The possibility of preexisting pollution at the site will be
an issue under the EPC Contract (cf. §8.5.4), and the EPC Contractor is of course
required to construct the project to meet environmental standards on emissions,
etc. (cf. §7.1.8).
Even if the Project Company has ...
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