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Reimagine | Reinvent | Grow
JOINT VENTURES (JV) / INTERNATIONAL OPERATIONS
PARTNERSHIPS
• We perform certain contracts as a • Our international operations
member of JVs, partnerships, and are exposed to additional risks
similar arrangements. There is a risk and uncertainties, including
that our partners may not fulfil their unfavourable political
contractual obligations to us or our developments and weak
clients. economies. E.g. unexpected
KEY RISK AREAS to control the actions of our policies, potential non-compliance
changes in the Government
•
We would have limited ability
with regulations and evolving
JV partners, including non-
industry standards, renegotiation
performance, default, bankruptcy or
or nullification of our existing
legal compliance.
contracts, social, political, and
economic instability, currency
fluctuations, etc.
• Proper due diligence of JV partner
during pre-bid/bid stage, esp. on • Proper due diligence during bid
time in terms of country or location
MITIGATION STRATEGIES • A strong back-to-back contractual • economically unstable or weak
financial ability, experience and
risk. Avoid excessively risky, unsafe,
track record.
countries or geographies.
arrangement to pass on liabilities
Have systems and processes to
and penalties to JV commensurate
ensure compliance to all key
with their share in the partnership.
regulatory, Government and
contractual compliances, standards,
laws, etc.
• Impact on quantity and quality of
project deliverables. • Loss of business.
AREAS IMPACTED • Loss of reputation. • • Safety and security risk of personnel.
•
Loss of revenue and profit.
Impact on revenue and profits.
Legal costs and waste of time
•
Impact on strategic targets of
•
improving our global footprint.
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