Delays or cost overruns prevent the project from generating cash on time.
The risk that demand (e.g., number of cars on a highway) falls below projections. Mitigated via Availability Payments (where the government pays for readiness, not usage) or minimum traffic guarantees.
High barriers to entry, capital-intensive, long life cycles, low correlation with other asset classes, and inflation-linked cash flows. Delays or cost overruns prevent the project from
Massive initial investment with long payback periods.
Senior debt, subordinated debt, cash flow waterfall, and covenant structures. High barriers to entry, capital-intensive, long life cycles,
(Engineering, Procurement, and Construction), supply of raw materials, maintenance and operations, and offtake agreements (sale of products/services). 2. Syndicate and Lender Relations Syndicate Roles : Quizzes test the different roles banks play within a
Force majeure (volcanic eruption) Rationale: Natural disasters (Acts of God) are usually uninsurable at reasonable rates or are borne by the government/ shared. Private partners rarely accept catastrophic force majeure risk. water treatment plants
These are capital-intensive, long-life physical assets that provide essential public services (e.g., roads, bridges, water treatment plants, power grids).