Procuring construction contracts for affordability and risk sharing

Getting a hydropower project underway has become increasingly challenging in terms of affordability (the sites are now generally more remote and in more challenging topography), the ever-tightening social and environmental restrictions (during construction and operation), and the availability of finance. This has led to the exploration of different methods for the procurement of construction in an attempt to reduce costs while still managing risks and providing fairness to all parties concerned. This paper provides case studies of four strategies employed recently by Knight Piésold in Africa and Canada for the development of hydroelectric projects.