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 ?
These risks and uncertainties include customary completion risks for transactions similar to the Takeover Bid, and it is specifically noted that AJL has not yet formally commenced the Takeover Bid and there is no guarantee that AJL will do so, or that if commenced it will be completed on the terms set out in this press release or at all.
The ratings incorporate the project's exposure to the completion risks of affiliated infrastructure projects needed for the successful commissioning of the plant.
He said: 'Through these innovative funding mechanisms, we have been able to address the challenges of project funding, cost variation and completion risks that have plagued the development of the nation's critical roads infrastructure assets.
Another consideration is the contractual and structural features to mitigate completion risks.
The traditional public-private partnership method was also modified to a 'hybrid PPP' model, so that the government now implements the projects using a combination of its own budget, inflows from so-called official development assistance and funds raised from bond floats at investment-grade rates to speed up project execution, reduce completion risks and deliver the economic benefits to the people as soon as possible, Dominguez said.
"In the current volatile market, the board of a listed company faced with a takeover proposal will focus on addressing credit and deal completion risks. We have introduced some novel features in this scheme to respond to those key risks, " Michael Gajic said.
"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.
This includes most power plant completion risks, and they often have to take an equity participation in power projects to secure the equipment order.
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.