Completion risk

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Completion risk

The risk that a project will not be brought into operation successfully or be able to pass its completion test.

Completion Risk

The risk that a project may not be completed and/or produce revenue, either because the financing was cut off before completion or because the project's construction was done poorly. See also: Completion Test.
References in periodicals archive ?
BCP is largely insulated from completion risks, which are effectively transferred to Energy Transfer Partners, LP (ETP, BBB-/Stable) under a joint venture agreement.
The transaction is the first of its kind in Australia outside the resources sector that involves a Chinese consortium, and includes a number of innovative features in respect of credit and deal completion risks (including payment of the cash consideration prior to the shareholders' meeting).
By opting for a complete solution from a single supplier taking full responsibility for integrating all the systems into an efficient, optimized solution, the yards completion risks of this complex semisubmersible rig are minimized and the owners can expect maximum efficiency with optimal lifecycle costs," says Magnus Miemois, Vice President Wartsila Ship Power Solutions.
They don't know how to deal with production or completion risks, discounting TV pre-sale contracts or arranging completion bonds," says Christophe Vidal, director of a main lender to the Spanish industry, Paris' CoficineNatixis.
Besides, the ratings continue to be constrained by residual completion risks, the lack of firm arrangements for fuel deliveries, the possibility of the input costs' outstripping base case assumptions, as well as risks connected with the project's continued ability to secure stable operating performance parameters once the plant is on-line, Fitch added.
The objective is not necessarily for all participants to have equal investment, or percentage interest along the entire chain, but to the extent that there is some cross participation in the liquefaction and receiving facilities, some of the complex documentation process and potential project risks such as construction completion risks may be streamlined.
The risks involved in financing the development of a mining project can be put into eight broad categories - legal risks, marketing risks, technical risks, commodity price, security risks, country risks, completion risks and management risks.
The high level of capital expenditures at both FPL and Capital Holdings creates completion risks, as well as funding risk.
The IDR of 'B-(EXP)' reflects Petropavlovsk's small scale of operations, the group's medium-to-high cost position, completion risks associated with the POX Hub construction and ramp-up, as well as the planned refinancing pending a successful notes issuance.
FAVORABLE CONSTRUCTION CONTRACT: The construction contract includes a guaranteed maximum price, thereby reducing potential construction cost variance and completion risks.
40 times (x) under various stress scenarios, including a combination of low availability, high gas prices, and the potential performance impact of completion risks.