Have the different sources of finance given rise to particular issues for PFI/PPP arrangements?
The different sources of finance have given rise to particular issues in PFI/PPP arrangements. International financing sometimes gives rise to significant foreign exchange risk issues, particularly for projects with Naira revenues. Government guarantees for project risks are usually requested to mitigate these risks as well as insurance. With regard to insurance, an issue which arises is the need for regulatory approval of offshore insurance. Offshore lenders usually prefer offshore insurance due to the inadequacy of the local insurance market. The Insurance Act however requires all insurances to be done locally, and offshore insurance requires the prior approval of the insurance regulator.
Related Questions
- Are there any particular regulatory issues in relation to employment/pensions which arise on PFI/PPP arrangements?
- Have any standard form terms and conditions of contract been developed for PFI/PPP arrangements?
- Are there any legal requirements as to the procedure for procurement of PFI/PPP arrangements?
