Risks in International PFI Projects

Whilst constmction project risks can typically be divided into three phases Planning and Pre-constmction risks Constmction and Cormnissioning risks and finally Operational risks, it is the general, pre-contract risks that are suggested to require careful assessment and management if an international PFI project is to have the best chance of success. These general areas of international risks which 

Technical Evolution and maturity of design Site investigations Source and availability of materials 

Employment Productivity of resources New or different methods of construction or operation Safety and security of employees and equipment Health, Safety and Environmental legislation Working patterns - hours, holidays 

Financial Inflation Fluctuation of foreign exchange Payment delays Local taxes Advisors fees 

Political Stability in terms of war or revolution. Constraints on availability or employment of expatriate staff The use of local companies and suppliers 

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In considering an international PFI facilities project, it is suggested that well before any potential Prime Contractor formally submits an expression of interest or holds discussions about a project - let alone produces a fully-costed proposal -an outline assessment of its indigenous political and economic landscape is needed to understand the risks that either foster or dampen the project s attractiveness and result in performance implications. 

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