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Project Finance
Project Risk Analysis
It’s a systematic process to estimate the level of
risk
It involves estimating the probability of
occurrence and consequences of occurrence and
converting the results to a corresponding risk.
The approach used depends upon the data
available and requirement levied on the project
level.
Project Risk analyses are often based on detailed
information that may come from a variety of
techniques, including but not limited to:
Country Risks
Pre- Construction Risks
Construction Risks
Feedstock & Logistics Risks
Operations Risk
Country Risk
Risk of expropriation, confiscation and nationalization
Design risk
Poor
track-record and financial creditworthiness of the
O&M Contractor
Environmental non-compliance
Conclusion
The prominent risks mentioned, can negatively impact
the lenders and the project sponsors when financing
capital projects via project finance arrangements.
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