Any infrastructure contract involves risks. These include commonly-recognized risks, such as the risk of construction delays, cost over-runs, or design flaws, to risks such as unforeseen macroeconomic conditions affecting the project's financial stability. A key decision in Privatization projects is how these risks will be allocated between the public and private sector parties to the contract. The risk allocation also influences the selection of contract payment mechanisms. This section provides guidance to Entities on risk allocation and payment mechanism.