Economic Risks to a Regional Water Supply and Sanitation Project in Romania

Abstract

Abstract This paper resumes some of the issues and outcomes raised by the research theme “Economic and financial risk management of environmental projects financed from European funds; impact of the crisis”. Although some of the economic and financial risks that arise in the field of water supply and sanitation (WSS) have been already presented and analysed in one of our previous papers, here we aim to assess and analyse the main economic risks to a specific regional WSS project in Romania. Based on the data analysis for the case-study and on some previous own research outcomes, we shall employ the qualitative risk assessment matrix by applying risk matrix scores that reflect our opinion on the impact of the crisis as well as of other specific factors, on a major WSS regional project. The main economic risk to such projects is currently the risk of demand (risk of non-payment). In the end, we shall highlight some conclusions, prospects and recommendations of mitigating the demand risk for more effective economic and financial management in the water sector.