Session 15

Submitted by
Group 07

What are the different types of risks faced by the public and the private sector in the
project? How to mitigate the identified risks?

Ans: The type of risks faced by Public Sector-

1. Delay in Land acquisition

2. NHAI event of default
3. Change in Law
4. Force Majeure

The type of risks faced by Private Sector are-

1. Financing Risks
2. Approval Risks
3. Design Risks
 4. Construction Risk
5. Operations and Maintenance Risk
6. Market Risk
7. Handover Risk
8. Concessionaire event of default
9. Change in Law

The difference between the risks faced by both can be observed that the private sectors face more
risks compared to the public sector. Moreover the risks mainly faced by the private sector
revolve around the construction and operation phase.

The way we can mitigate the risks are:

Land Acquisition: Before 90% of the land is purchased and subsequent possession is taken over,
NHAI should wait to put any project out to bid.

Approvals: The government could have created a single authority that the concessionaire could
go to in order to swiftly secure the necessary licences or approvals in order to speed up the
process.

Design Risks: Prior to the start of the project, extensive public consultations with impacted
families and pertinent government agencies should have been held to allay their worries and
determine practical next measures.

Further, to determine the bid amounts, NHAI should make use of cutting-edge technologies and
traffic research.