Disruptive technology risk

Light rail Light rail

Description (What is the Risk)

The risk that a new emerging technology unexpectedly displaces an established technology used in the light rail sector.

Risk Allocation (Who typically bears the risk)

Allocation: Public Private Shared
Rationale

This risk is unlikely to be passed to the Private Partner as technology is unlikely to be a major component of the project.

Mitigation Measures (What can be done to minimize the risk)

Obligation on the Private Partner to provide service which seeks for continuous improvement for minor changes. Obligation to operate in accordance with best industry practice may also impose some obligation on Private partner to take on improvements in technology.

Private Partner will also usually have an obligation to co-operate/ interface with any new fare collection system.

Government Support Arrangements (What other government measures may be needed to be taken)

Major changes would require a variation.

Comparison with Emerging Market

Typically not dealt with in detail in developed markets.

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Description (What is the Risk)

The risk that a new emerging technology unexpectedly displaces an established technology used in light rail sector.

Risk Allocation (Who typically bears the risk)

Allocation: Public Private Shared
Rationale

This risk is unlikely to be passed to the Private Partner as technology is unlikely to be a major component of the project.

Mitigation Measures (What can be done to minimize the risk)

Obligation on the Private Partner to provide service which seeks for continuous improvement for minor changes. Obligation to operate in accordance with best industry practice may also impose some obligation on Private partner to take on improvements in technology.

Private Partner will also usually have an obligation to co-operate/ interface with any new fare collection system.

Government Support Arrangements (What other government measures may be needed to be taken)

Major changes would require a variation.

Comparison with Developed Market

Typically not dealt with in detail in emerging markets.

Back to Light rail