2.3 Risk transfer

Outline the risk transfer under the project agreement. The risk allocation matrix, completed during the project procurement phase, will provide a basis for this analysis. A risk summary as in Table 3 may be included.

Table 3 Risk Summary

Risk	State	Private Party
Site risks		√
Design risk		√
Construction risk		√
Commissioning risk		√
Operating risk		√
Market risk		√
Industrial relations		√
Change in government policy/law	√
Regulatory change		√
Force majeure	√	√
Asset ownership		√
Inflation post execution		√
Exchange rate post execution		√
Interest rate		√
Financing/refinancing post execution		√
Sponsor risk	√
Termination	√	√
Residual value	√