Risk management

According to the Guide, which should be the allocation of expropriation risks?

• Public

• Private

• Shared

• The PPP Guide does not provide advice on this risk

The risk related to environmental approvals is generally allocated to the

• Public Partner

• Private Partner

• Shared

• The PPP Guide does not provide advice on this risk

Which party should assume the consequences of a delay in obtaining permits for construction?

• Public

• Private

• Shared

• There is no common approach recommended and the Scenario does not provide sufficient information

Where is the risk of design (basically, errors in the project design) best allocated?

• Public

• Private

• Shared

• The PPP Guide does not provide advice on this risk

Which party should bear the risk of construction (cost overrun and delay in completion)?

• Public

• Private

• Shared

• Private but with exceptions as stablished in the contract (e.g. Force Majeure)

Commissioning risk: the risk of a delay in commissioning due to the state of the works after construction, should be

• Borne by the Public Partner

• Borne by the Private Partner

• Shared

• This is not a category of risk described in the Guide

Which is correct with respect to refinancing risk (upside and downside)?

• Risk (of conditions being worse than expected) is typically retained by the Public Partner

• Risk (of conditions being worse) is typically assumed by the Private Partner but refinancing gains shared

• Always the risk (positive or negative) is to be transferred to Private Party

• The refinancing gains are always kept / retained by the Public Party

Which party should bear the risk of a general change in law according to the Guide?

• Public

• Private

• Shared

• That is not a risk with a recommended standard allocation

Changes in law – specific change in law: the impact of changes in roads regulation should be

• Fully retained by the Public Partner

• Fully assumed by the Private Partner

• Shared always as 50/50 split

• Are typically shared or assumed by the Private Partner with a cap

Changes in law- discriminatory changes: a change in a regulation or law that impact only our specific project should be

• Fully retained by the Public Partner

• Fully assumed by the Private Partner

• Shared always as 50/50 split

• Are typically retained by the Private Partner with a cap