RISK ALLOCATION IN PROJECT FINANCE: A CASE STUDY OF THE 2X100 MW COAL-FIRED POWER PLANT PROJECT IN KALIMANTAN

• Main Author: Ansari NS, Roni
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/63216
• Institution: Institut Teknologi Bandung

In project finance, the involved parties will be exposed to various risks. The ability to identify, manage and allocate those risk is of significant important for the success of a project. After being identified, many of the project risks are allocated to either project company and/or Government/PLN in the project documents such as Power Purchase Agreement (PPA). All main agreements governing the risk allocation should be assessed with a purpose to ensure that significant risks are allocated to those parties that are best able and most motivated to assume them. Based on the research, the risks allocation in Project Borneo’s PPA is quite similar with the framework for risk allocation based on literature review. Key distinctions are on coal supply and force majeure events affecting PLN’s grid where in both events Government (thorough PLN) assume those risks.