Article from: TDM 1 (2004), in International Commercial Arbitration
I would like to add a brief comment from an economist's perspective. It is not uncommon to find that energy infrastructure investments require long-term financing which in turn requires long-term contracts that characterize the stream of future cash flows intended to cover debt service and provide the equity investor with a return on investment. Unfortunately the experience of the last 40 years demonstrates that long-term forecasts of demand, supply, and price for energy commodities are often wrong. A situation can arise in which both parties to an agreement find that ...