P11.Project risks
The following risks, which can negatively affect progress of the Se Kong 5 Project
and cost of its facilities, should be accounted for in implementation of this project.
1.Natural risks:
• Risk of extending the construction period and increase in Project costs
in the event of damage to roads, transmission lines etc due to natural calamities
( landslides during monsoons).;
• Risk of suspension in Project progress/ electric energy production due to
force majeure natural events ( earthquakes, flood flows exceeding the
expected values etc.)
2. Environmental risks:
Extension of construction period and increase in the Project costs arising
from additional requirements of Environmental Authorities in clearing the
project design ( land acquisition, population relocation etc).
3.Design risks:
• Risk of extending the construction period and Project costs due to failure
to account for all local conditions (mountain and climatic conditions) in
construction of the access road and infrastructure facilities.;
• Risk of reduction of energy yield due to inadequate hydrological investigations
of the Se Kong water shed;
• Risk of reduction of energy yield due to excessive water releases for riparian
needs;
• Risk of extending the construction period and Project costs due to inadequate
geological investigations of the Project site resulting in potential
increase of work quantities
4. Technological risks:
• Risk arising from probable slippage of target dates due to fault of construction
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