Financial Risk Management in Infrastructure Energy Projects

Risk is a concern for any project whereas infrastructure energy projects are considered more sensitive. The complication of such projects is deepened by great deal of required capital, lots of interfaces and diversified stakeholders. While capital is of the essence, its provision could be done through ´project finance´ or ´traditional finance´. The two streams of lending are elaborated while the prominence of risk management is justified in the context. Thereafter risk factors affecting energy projects are detailed and result of a survey from Iranian managers are briefed i.e. ´Host country risk´, ´Weak feasibility study´ and ´Unclear regulation´ are among the most effective risk factors.