Politics Institutions and Project Finance: The Dabhol Power Project Harvard Case Solution & Analysis

This case deals with the development and financing of Dabhol power plant in Maharashtra state in India. This project has been controversial from the start for three main reasons: a promoter (the now defunct Enron Corporation) sought to minimize their capital commitments in the project economy is based on high end prices move in relation to the prevailing (subsidized) price levels, and both projects and financial transactions could not protect adequately against political turmoil. For practical purposes, can be considered an example of a failed venture capital project. This case, in particular, the risks associated with the development of such enterprises in a politically unstable environment may not be suitable promoters and financiers. In principle, it aims to illustrate the difference between the management of operational risk and management and mitigation of project risks in an uncertain institutional environment. "Hide
by Grace Lo, Paul Lejot, Frederik Pretorius Source: University of Hong Kong, 13 pages. Publication Date: March 19, 2008. Prod. #: HKU707-PDF-ENG

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