Project Finance in International Trade Law: Risk’s Perspective

Abstract

Every country needs to invest in its infrastructure, and project finance provides the most common vehicle for such investment. The sponsor of a prospective project or the sponsor’s agents must attract interest from potential investors. A proposed project may present risks, however, and investors will likely demand that the risks be identified and mitigated where possible. Examples of important risks that can affect a project include commercial, political, legal, environmental, and social risks. Identification, assessment, measurement, and allocation of different risks to different parties are often among the steps involved in managing or mitigating project finance risk.