Become a PUF Member Organization

Fortnightly Magazine - February 2006

Re-engaging Investors

How the World Bank Group removes generation risks in emerging markets.

Infrastructure investors have had their share of pain over the past few years, particularly in developing countries. Aside from worries about the safety and stability of the investment itself, investors also face a more expensive cost of capital. Political risk insurance cannot remove the uncertainties associated with infrastructure investments, but the combination of sound deal structure and clear and reasonable expectations by all parties can mitigate some of these risks.

Byline: 

Philippe Valahu

Read Entire Article

Rising Unit Costs & Credit Quality: Warning Signals

With increasing unit costs, the financial prospects and credit outlook for many utilities will depend on their success in passing along such costs to consumers.

The utility sector still has excellent access to the capital and credit markets. Yet, it is never safe to assume utilities will continue to enjoy the same low costs of capital. This is particularly true for companies facing compressed margins, regulatory deferrals or disallowances, and rising debt leverage.

Byline: 

Ellen Lapson

Read Entire Article

Managing Risk: Prudence Reviews and Nuclear Projects

How to avoid the billions of dollars in costs that were disallowed during the last round of construction.

With nuclear energy again being viewed as part of the solution for the United States’ energy needs, a number of companies are starting the early permitting and licensing process. Meeting budget targets means the industry must address project-management issues and the risk of end-of-project disallowances for any company or regulator to be able to move forward with new construction.

Byline: 

Rilck Noel

Read Entire Article
V