Project life cycle and risk

Risk

Construction

High

Medium

Commercial production/operation

Low

Construction delay risk

Wrong development assumptions

 

Strong operation and maintenance and insurance contracts mitigate operational risks

Operational track record 1 – 2 years

Construction phase
2 – 4 years

Loan redeemed
15 years

Pure dividends

Risk level

Operational phase
15 – 30 years

Re-invest

Exit

Invest

Funding

PE and bank construction
debt funding

Mix of institutional investors with
debt from banks and institutions