Potential risks may be categorized as;
• Site risk including physical suitability, availability, environmental, historical resources, statutory approvals, traditional land use, geotechnical.
• Design, construction and commissioning risk.
• Contractual risk including that the private sector party (usually a special purpose vehicle created by a consortium) its sub-contractors or the government/SIO will not fulfill their contractual obligations.
• Financial risks including that private financing will not be available, that the project cannot be financed competitively, changes in the financial parameters before financial close or that the project fails financially later.
• Operating and performance risk.
• Industrial relations risk.
• Demand or usage risk.
• Asset ownership risk including latent defect, obsolescence, upgrade, residual and force majeure.
• Change in law.