Change of law risks. Changes in the law, either because of new legislation
or changes in regulations under existing laws, may have a serious effect
on the viability of the project (cf. §10.6). These risks exist whether or not
funding for the project is raised overseas, and may affect a project in both de-
veloped and developing countries. Again they may be passed on under the
Project Agreement to the Offtaker or Contracting Authority, or under
a Government Support Agreement to the Host Government.
Quasi-political risks. This category includes issues such as contract disputes,
which may have a political or commercial background; it illustrates that the
dividing line between commercial risks and political risks is not a precise
one (cf. §10.7).
It might ...