- 5aAppendix Structuring and Drafting the Tender and Contract - Describing Main Risks
- 1.1 Describing the Main Risks during the Construction Phase, and Their Potential Allocation
- 1.2 Describing Main Risks during the Operations Phase and Potential Allocation
- 1.2.1 Revenue Risk – Demand or Volume Risk [3]
- 1.2.2 Revenue Risk – Tariff Levels (only in user-pays PPPs)
- 1.2.3 Revenue Risks – Fraud and Collection Risks (only in user-pays)
- 1.2.4 Private Perspective Only – Revenue Risk – Government-Pays Counterparty Risk
- 1.2.5 Revenue Risk - Inflation and Indexation
- 1.2.6 Third Party Revenues and Ancillary Revenues
- 1.2.7 Availability and QualityRisk (and revenue risk from the private perspective)
- 1.2.8 Maintenance and Renewal Risks
- 1.2.9 Other Operating Costs
- 1.2.10 Technological Obsolescence and Technical Enhancements
- 1.2.11 Other Costs – Taxes
- 1.2.12 Residual Value/State of the Asset at Contract Expiration – Hand-Back Requirements
- 1.3 Financial-Related Risks and Potential Allocation
- 1.4 Describing other Risks that Affect or may Occur in Both Phases of the Contract, and its Potential Allocation
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When the mix of future revenues includes revenues coming from third parties or produced by ancillary businesses, the risk of those revenues being lower than anticipated is generally allocated to the private partner.
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