It is possible that either general debt market conditions or the risk profile of the particular project will have deteriorated by the time the private party seeks to implement a scheduled refinancing. If this is the case, the terms and conditions of the new debt may be more stringent than the original terms, and in some cases a refinancing loss may eventuate.
The private party should bear the risk of any refinancing losses unless the project deed specifically provides otherwise (which was the case in a limited number of projects negotiated during the GFC).