Subjects:

Banking and Finance

Contents:

Preface

1.Risk, Risk Asessment and Risk Allocation.

2. Traditional Theory of Risk Allocation.

3. Introduction to BOT projects.

4, Project Finance.

5.Project Bankability.

6. Allocation of Risk in Project Finance.

7. Project Participant Interface Risk.

8. Concession Agreement.

9. Shareholders' Agreement.

10. Construction Contract.

11. Splitting Turnkey Construction Contracts.

12. Operation and Maintenance Agreement.

13. Offtake Purchase Agreement

14. Input Supply Agreement.

15. Issues Common to the Project Documents

16. Tendering Procedures.

17. Power Projects.

18. Transportation.

19. Oil and Gas.

20. Telecommunications.

21. Water and Sanitation.

22. Outsourcing.

Glossary.

Index

Risk is the probability of an event occurring and the consequences of its occurrence. Where infrastructure is concerned, the event in question will generally have a negative effect on the project, either increasing cost, delaying completion, reducing performance, or possibly rendering the project itself impracticable. Where the construction and long-term management of infrastructure is at stake, risk becomes an overriding factor in project finance.

This remarkably insightful -and enormously useful- book examines how risk is managed in build-operate-transfer (BOT) projects. Jeffrey Delmon analyses the contractual structure that underlies a BOT project and how that structure allocates risk among the participants in the project. He details the various aspects of a BOT project that influence risk allocation, and reviews some of the key risk issues that arise in different industrial sectors such as power, transport, oil and gas, telecommunications, and water and sanitation, and how these sectors address risk in different ways.

For each of the agreements and procedures that characterize BOT project finance, Delmon skillfully explains the kinds of risk that must be allocated, including the following: development risk; completion risk; cost increase risk; performance risk; operation risk; market risk; political risk; environmental risk; and credit risk.