Document ID: chunk:federal_register_of_legislation:F2024L01074:body:0:p54
Version: federal_register_of_legislation:F2024L01074
Segment Type: other
Provision Reference: 
Character Range: 149643–156704

payment or amortising debt with high balloon repayment.
Political and legal environment
Political risk, including transfer risk, considering project type and mitigants                                                                           The project has very low exposure; there are strong mitigation instruments, if needed.                                                                                                     The project has low exposure; there are satisfactory mitigation instruments, if needed.                                                                                 The project has moderate exposure; there are fair mitigation instruments.                                                                                      The project has high exposure; the mitigation instruments are weak or there are none.
Force majeure risk (war, civil unrest, etc)                                                                                                               Low exposure.                                                                                                                                                                              Acceptable exposure.                                                                                                                                                    Standard protection.                                                                                                                                           There are significant risks which are not fully mitigated.
Government support and project's importance for the country over the long term                                                                            The project is of strategic importance for the country (preferably export-oriented). It has strong support from the government.                                                            The project is considered important for the country. It has a good level of support from the government.                                                                The project may not be strategic but brings unquestionable benefits for the country. Government support may not be explicit.                                   The project is not key to the country. The support from the government, if any, is weak.
Stability of legal and regulatory environment (risk of change in law)                                                                                     The regulatory environment is favourable and stable over the long term.                                                                                                                    The regulatory environment is favourable and stable over the medium term.                                                                                               Regulatory changes can be predicted with a fair level of certainty.                                                                                            Current or future regulatory issues may affect the project.
Acquisition of all necessary supports and approvals for relief from local content laws                                                                    Strong.                                                                                                                                                                                    Satisfactory.                                                                                                                                                           Fair.                                                                                                                                                          Weak.
Enforceability of contracts, collateral and security                                                                                                      Contracts, collateral and security are enforceable.                                                                                                                                        Contracts, collateral and security are enforceable.                                                                                                                     Contracts, collateral and security are considered enforceable even if certain non-key issues exist.                                                            There are unresolved key issues in respect of actual enforcement of contracts, collateral and security.
Transaction characteristics
Design and technology risk                                                                                                                                The project has fully proven technology and design.                                                                                                                                        The project has fully proven technology and design.                                                                                                                     The project has proven technology and design; start-up issues are mitigated by a strong completion package.                                                    The project has unproven technology and design; technology issues exist and/or complex design.
Construction risk
Permitting and siting                                                                                                                                     All permits have been obtained.                                                                                                                                                            Some permits are still outstanding but their receipt is considered very likely.                                                                                         Some permits are still outstanding but the permitting process is well defined and they are considered routine.                                                 Key permits still need to be obtained and are not considered routine. Significant conditions may be attached.
Type of construction contract                                                                                                                             Fixed-price date-certain turnkey construction engineering and procurement contract (EPC).                                                                                                  Fixed-price date-certain turnkey construction EPC.                                                                                                                      Fixed-price date-certain turnkey construction contract with one or several contractors.                                                                        No or partial fixed-price turnkey contract and/or interfacing issues with multiple contractors.
Completion guarantees                                                                                                                                     The liquidated damages are substantial and are supported