
§11.1 MITIGATION OF POLITICAL RISKS
If a project’s political risks are not sufficiently mitigated in the ways described
in Chapter 10 to satisfy private-sector lenders, the Project Company may be able
to obtain:
• Guarantees or insurance for political risks (“political risk cover”), thus leav-
ing private-sector lenders with only the commercial risks on the project (e.g.,
project completion)
• Guarantees or insurance that cover all risks, both political and commercial,
thus leaving lenders to provide finance with no risk on the project itself (“full
cover”)
• Direct loans to the Project Company from public-sector (national or multi-
lateral) lenders that ...