Athens Road Essay

2056 Words Apr 15th, 2013 9 Pages
2. What are the risks associated with the Athens Ring Road project? Do you believe that the concession structure proposed by Mr. Papadopoulos, as shown in case Exhibit 8 can ensure mitigation of those risks? Would you recommend any modifications to the concession structure and if so, what would those be?

Accurately assessing and mitigating any project finance risks is an utmost component which enables to deliver a successful project initiative. The complexity of such investments requires an extra careful analysis in order to avoid the breach of the initial assumptions which would eventually jeopardize the feasibility of the project. Consequently, Papadopoulos should elaborate a list which identifies the various risks that could
…show more content…
The likelihood of delaying the completion, delivering the project with performance deficiency, huge costs overruns or even the noncompletion of the project, should be treated with vital importance and should be minimized as much as possible. As a result, the government should resort to large international construction companies with proved background experience in similar projects in order to diminish the arising of such problems which could threat the entire project. Moreover, Athens Ring Road is considered a crucial infrastructure that would enable Greece to win the bid for the 2004 Olympic Games whereas without it would compromise such aspirations as the highway will accommodate the transportation needs for the logistic in Athens. Nevertheless, concerns about the lack of interest from international construction companies may bring additional expenses to the construction. As to avoid further costs, government should ensure the maximum level of commitment with the constructions firms by dealing with the bureaucracies and providing full support in the negotiation with all the 33 local municipalities. With this engagement from the government, international firms would see Athens Rind Road as an attractive and profitable project to commit with.
Financing Risk
The finance structure of the project raised several questions to be previously discussed. The expected range cost of EUR

Related Documents