Risks during the post-commissioning period are manifested in cash flow shortfalls that arise from the failure of the facility to perform according to technical specifications. This risk is usually mitigated by a warranty period which conforms to the period of greatest risk after construction work is done and usually lasts from one to two years.
Table 2-6: Post-Commissioning Period Risks and Possible Coverage Mechanisms
Type of Risk | Definition | How can it be covered? |
Operating Risks | The risk that the project will not perform according to technical specifications. | This risk can be covered by warranties from equipment suppliers or the consortium of construction suppliers involved in the PPP initiative. |