An Analysis of John Mauel's Article

967). Traditionally, a country's infrastructure has been the accountability of its government, particularly in developing countries where the utilities are perceived as strategically important to the economy. In addition, the enormity of the investment be and long gestation periods usually associated with power put ups have been viewed as serious deterrents to clandestine investors (Bond & Carter, 1995, p. 967). Bond & Carter (1995) observe, however, that recent trends in the privatization of major(ip) utilities in unhomogeneous countries have shown that private financiers are up to(p) to mobilize the funds necessary to finance the infrastructure projects. Also, private sponsors now seem willing to accept both project and country trys once they have ascertained that the institutional environment has met certain minimum standards and the projects have been appropriately structured (Bond & Carter, 1995, p. 967).

In the first paragraph of his study of contractual run a assay allocations in internationalistic power projects, John Mauel states that "[t]he fundamental theory of sub suggests that a risk should be shifted to the person or entity that is trump able to control or manage the risk" (1996, p. 38). This is a position with which Bond & Carter ag

Bond, G., & Carter, L. (1995). financial backing energy projects. Energy Policy, 23, 11, pp. 967-975.

Mathers' response lends an urgency to the signifi after partce of risk allocation that is missing from Mauel's article, despite Mauel's copious listing of for each one possible contracting party and his or her likely risk allocation.

This is Mauel's basic argument and the sum total of his conceptual contribution in the article. The remainder merely identifies the various parties who may be best suited to bear the risks of non-completion of various stages in the victimisation of the project.

Mauel gives what appears to be a complete listing of the types of operations these projects tidy sum entail, whether it is a build-own-operate or build-own-transfer program, and the variety of contracting parties that can be involved in each program. He then discusses each type of risk by first allocating it to the stage of learning in which it would likely occur. This method of discussion is logical and rational because it offers a chronological view of each risk and allows the implicated party to determine what events must occur before the risk that he may be allocated will become relevant. This gives the raise party some sense of the enormity of the project and his or her role in it.

due to the complex nature of international power projects and the long time period associated with construction and operation, or so of the subjects of the various risks inherent in international power projects can be brought about by a variety of causes. . . . The various causes associated with a risk must be identified in order to properly allocate the risk. Since various parties have different abilities to prevent a causal event or set from occurring, causation should be coupled with risk when documenting which party or parties should bear the risk (Mauel, 1996, p. 41).

ree (1995, p. 969). Mauel argues that because of the variety and significance of the risks associated with the cons
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