d)  Technology Risk

A financier's main concern is that technology under-performance will adversely affect the operations to the extent that the project is unable to make its debt repayments. As technology risk is seen by lenders as the responsibility of the sponsor, they will ask for additional support and guarantees from the sponsors.  Sponsors will not generally be prepared to assume the full risk themselves, and will in turn require guarantees and warranties from the manufacturers of equipment and component suppliers.