Athens Road
2. What are the risks associated with the Athens Ring Road project? Do you believe that the concession structure proposed by Mr. Papadopoulos, as shown in case Exhibit 8 can ensure mitigation of those risks? Would you recommend any modifications to the concession structure and if so, what would those be?
Accurately assessing and mitigating any project finance risks is an utmost component which enables to deliver a successful project initiative. The complexity of such investments requires an extra careful analysis in order to avoid the breach of the initial assumptions which would eventually jeopardize the feasibility of the project. Consequently, Papadopoulos should elaborate a list which identifies the various risks that could undermine the outcome of Athens Ring Road and should prepare solutions in advance for each of those risks in order to limit or eliminate the impact of those in the project. Nevertheless, one should bear in mind that risk identification is a constant process as projects are continuously evolving and new risks may arise which would require an updated mitigation of those while others may dissipate or diminish their importance.
Risks inherent into project finance vary depending on the type of project and on the exposure from different parties within the project. In his assessment purpose, Papadopoulos had four alternatives which demanded thorough examination where each option would bear advantages and drawbacks.
The first option would resort utterly into public ownership. Government would bear the responsibilities from all the operations and would provide the necessary funds to build the project. Private sector would be left outside with no involvement.
A further alternative was quite similar to the first. Yet construction and designing would be granted to the private sector which would transfer some of the total risk towards the private. Nevertheless, Government would have to bear all the funding costs.
The third scheme demanded a
Accurately assessing and mitigating any project finance risks is an utmost component which enables to deliver a successful project initiative. The complexity of such investments requires an extra careful analysis in order to avoid the breach of the initial assumptions which would eventually jeopardize the feasibility of the project. Consequently, Papadopoulos should elaborate a list which identifies the various risks that could undermine the outcome of Athens Ring Road and should prepare solutions in advance for each of those risks in order to limit or eliminate the impact of those in the project. Nevertheless, one should bear in mind that risk identification is a constant process as projects are continuously evolving and new risks may arise which would require an updated mitigation of those while others may dissipate or diminish their importance.
Risks inherent into project finance vary depending on the type of project and on the exposure from different parties within the project. In his assessment purpose, Papadopoulos had four alternatives which demanded thorough examination where each option would bear advantages and drawbacks.
The first option would resort utterly into public ownership. Government would bear the responsibilities from all the operations and would provide the necessary funds to build the project. Private sector would be left outside with no involvement.
A further alternative was quite similar to the first. Yet construction and designing would be granted to the private sector which would transfer some of the total risk towards the private. Nevertheless, Government would have to bear all the funding costs.
The third scheme demanded a