This book examines the spectrum of risks posed to the development, financing, construction and operation of trans-boundary energy infrastructure and the tools that may be deployed to manage these risks. The book begins by examining trends in trans-boundary energy infrastructure and the nature of the risks - non-technical, technical and financing - which infrastructure development projects and existing operations must anticipate and manage. Individual categories of intergovernmental and host government risk will be viewed from the perspectives of leading international experts. These risks, and the tools applied to manage them, will also be viewed from the different viewpoints of the state and private sector counterparties, lenders, affected communities and other interested third parties, such as indigenous communities, individual landowners and the non-governmental organisations that typically represent their interests. Against a backdrop of global energy supply/demand dislocations, fragility in the global financial markets, increasing awareness of the impact of projects on individuals, communities and the environment (especially in the wake of the recent BP disaster in the Gulf of Mexico), and medium to longer-term concerns about security of supply and climate change, it is increasingly clear that the bandwidth of risks which infrastructure developers, operators and their advisers now need to be aware of is becoming much broader.
Introduction Thomas J Dimitroff Infrastructure Development Partnership LLP Part 1: Trans-boundary energy infrastructure and the nature of related risks Political and other forms of nontechnical risk Arve Thorvik Thorvik International Consulting Macroeconomic Risks Kevin Gardner Barclays Wealth Management Technical and operational risk and energy infrastructure Deb Grubbe Operations and Safety Solutions, LLC Unforeseen Risks and Emerging (Black Swans) Sir Mark JS Allen Thomas J Dimitroff Infrastructure Development Partnership LLP Part 2: Managing intergovernmental risk Multilateral and bilateral investment agreements Tom Cummins Ronnie King Ashurst LLP Project specific intergovernmental agreements George Goolsby Baker Botts LLP Trans-boundary projects and international maritime risks Glen Plant Barrister Part 3: Managing host government risk in the context of transboundary energy infrastructure Host government agreements: investment protection and stability Charles Lindsay Allen & Overy LLP Tax Risks Stuart Schaffer Baker Botts LLP Local and International Competition and Related Regulatory Risks Leigh Hancher Allen & Overy LLP Environmental and social risks David Blatchford Gill Cousins Martin Lednor IDP LLP Project security Anthony FS Ling LPD Strategic Risk Ltd Securing Project Rights to Land Robert Barkley Part 4: Managing commercial and finance risks Project finance Alexandre Chavarot Clinton Climate Initiative Managing commercial risks William E Browning Infrastructure Development Partnership LLP Part 5: Stakeholder perspectives The Joint Venture and Internal Investor Risk Considerations Thomas J. Dimitroff Infrastructure Development Partnership LLP Managing risks to transboundary energy infrastructure from the perspective of the Host State Judith Kim Geoffrey Picton-Turbervill Ashurst LLP Risk posed to and by indigenous and local communities and the NGOs that advocate their interests Henry Thompson