Risk Category | Description | Consequence | Preferred allocation | Mitigation |
Network and interface risk | ||||
Withdrawal of support network | The risk that, where the facility relies on a complementary Government network, that support is withdrawn or varied adversely affecting the project. | Negative patronage and revenue consequence. | Government, where the change discriminates against the project. | The private party will seek financial redress against change which unfairly discriminates against the project, particularly on a user pays project where revenue is directly affected. Under an availability model, the private party will seek to avoid abatement where the cause of unavailability is due to Government withdrawal of a support network. |
Changes in competitive network | The risk that an existing network is extended/changed/ re-priced so as to increase competition for the facility. | Negative patronage and revenue impacts. | The private party, except to the extent that Government provides redress for appropriate, discriminatory changes. | The private party will seek financial redress against change which unfairly discriminates against the project by Government subsidising competition (existing or new). |
Interface (1) | The risk that the delivery of core services in a way which is not specified/anticipated in the contract adversely affects the delivery of contracted services. | Adverse effect on delivery of contracted service, potential for default by private party and possible need for Government to make other arrangements for service provision. | The private party except to the extent that Government provides redress. | Government manages core service activities allowing it to influence the materialisation of interface risk and its consequences. Other mitigants include an up-front assessment (by both Government and the private party) of the likely interface issues, continual review and monitoring and development of a communications strategy in respect of delivery of the two related services. Government will also specify in the contract the extent of core services and the way in which they will be delivered so that only manifest and adverse changes and deficiencies can trigger this risk. |
Interface (2) | The risk that the delivery of contracted services adversely affects the delivery of core services in a manner not specified/anticipated in the contract. | Adverse effect on delivery of core services, default by private party and possible need for Government to make other arrangements for core service provision. | The private party can mitigate this risk by managing the way in which it delivers the contracted service activities. | |