1.

OPERATING
• . In this project both the entities government and private are maintaining and operating the project and
investing for the same. But sometimes if there is increase in due to new or increased taxes private entity
might not take the responsibility.
2. LEGAL
• MJP and LWMC are under the contract of 10years and therefore LWMC will face legal risks if the financial
route determined is not followed and obliged.
3. SELECTION OF ROUTE
• Refers to the risk that the concessionaire introduces too much financial stress on a project by using an
inappropriate financial structure. It can result in additional funding costs for increased margins or
unexpected refinancing costs.
4. SPONSOR RISK
• Refers to the risk that the Sponsor will prove to be an unsuitable partner for the project, for example due
to poor project management or a failure to fully recognise the agreed terms of the Concession
Agreement.