Financial and Economic Risks to Public Projects

Abstract

This paperis a summary ofresearch activityconductedwithin Sustainable Economic Developmentsectorof Instituteof National Economyin 2013, activitycentered aroundthe research theme“Economic and financialrisk managementof environmentalprojectsfinanced from European funds; impact of the crisis”.The general objectiveistheoretical and methodologicalsubstantiation of the most important economic and financialrisksspecific to environmentalinvestments, with particular emphasis onthepublicdomain, i.e. waste management, water supply andsewagemanagement.A number of matrix were executed in order to evaluate the risks that occur in waste managementprojectsand also an analysisof the risk probabilityandrisk allocation on bothcollection, sortingandwaste transferconcessionas well asin compliance storagewasteconcession.The second part of the paper presented the economic and financial risks that arise in the field of water supply and sanitation (WSS), classified as commercial and institutional risks. To analyze the major economic and financial risks in the sector, especially in the Romanian situation, ataxonomy table of the main financial and economic risks was proposed, as well as a qualitative risk assessment matrix by applying the risk matrix scores.