Tomeki

Risk shifting and long-term contracts

Risk shifting and long-term contracts

evidence from the Ras Gas Project

By Mansoor Dailami

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Publish Date

2000

Publisher

World Bank Institute, Governance, Regulation, and Finance Division

Language

eng

Pages

-

Description:

Risk shifting and incomplete contracting lie at the heart of the agency relationship inherent in the procurement and financing of large-scale projects such as power plants, oil and gas pipelines, and liquefied natural gas facilities. An investigation of Ras Gas bonds provides empirical evidence of the risk-shifting consequences of contractual incompleteness.