Introduction

Despite the setbacks of the 1997 Asian Financial Crisis, the volume of private investment in large-scale infrastructure projects has grown rapidly throughout the world over the past few decades. However, a review of this experience indicates that such projects have had a history of subjecting participants to major risks and in some cases, risks have translated into distressed and cancelled projects. This article reviews the extensive literature on the risks of private investment in infrastructure and identifies four major categories of risks-social/environmental, host ...