S No Type of Risk

1 Design Risk

2 Demand Risk

3 Construction Risk

4 Commissioning Risk

5 Operating Risk

6 Performance Risk

7 Technology Risk

8 Revenue/Price Risk

9 Residual Value Risk

10 Financing Risk

11 Force Majeure Risk

12 Political Risk

13 Changes in Law/Regulation

Ennvironmental and Social

14 Risk
 Description

Proposed design unable to meet the performance and service

requirements

Actual demand for service is lower than planned

The construction not completed on time, within budget or to

specification

Delay/failure in achieving all required approvals

Risks relate to technology, nature and costs of operations and

maintenance and adherence to performance standards

Failure to perform to the specified service level

Risk of technology obsolescence

Non-payment due to resistance from users, regulatory control over

pricing, delays in revision of prices or such revisions not keeping up
with the increase in cost of service delivery.

Failure in achieving the expected realisable value at the end of the

project

Inappropriate/Insufficient financial structuring

Unanticipated or natural disaster

Change in political will/commitment towards the project

Change in current regulatory regime

Adverse effect of the project on social or environmental set-up

 Consequences

Cost of modification and re-design

Reduced revenue

Additional costs, time delay

Additional costs, cost of providing a

temporary alternative solution

Increased operating costs or reduced

revenue

Costs of meeting performance standards

Cost of replacing technology

Reduced revenue

Lower value for assets at end of project

term

Additional funding costs for increased

margins, refinancing costs

Additional costs to rectify

Stalling of project, its suspension or

termination

Costs of complying with new

regulations/reduction in revenue

Costs associated with rehabilitation,

restoring the damages caused
 Stage Stakeholders

Policy/Regulatory Policy Makers

Employees of Authority
In-principle approval/clearances Elected Representatives

Advocacy groups
Project Development Studies
Employees of authority

Advocacy groups
Project Structuring/Financial viability Private Sector
Users

Advocacy groups
Procurement Private Sector
Employees of authority

Employees of authority
Private Sector
Contract Monitoring
 Requirement

Policy Framework for each sector/sub-sector for undertaking

projects

Tariff setting, user charges

Cabint/Government approval for projects

Environment clearances for proceeding further with project

implementation

Technical/Market studies

Feasibility studies

Preparation of detailed project reports

Financial viability assessment

Options for Project Structuring

Preparation of tender documents for selection of a private

developer

Bid process management

Execution of agreement between the authority and the

selected developer

Monitoring the construction activities

Contract monitoring during operations