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Title: A critical review of sovereign guarantees and its adequacy as a risk mitigation instrument in a limited recourse context : Pakistan's energy sector case study
Author: Khan, Ahmed Abdullah
Awarding Body: University of Warwick
Current Institution: University of Warwick
Date of Award: 2017
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This study provides a holistic outline of the investment security measures provided by host states, especially in developing countries normative to a limited recourse context. In order to provide a thorough, discursive analysis, this thesis refers to Pakistan’s energy sector as a case study example. Rising electricity shortfall and continued rise of circular debt have inhibited Pakistan’s continued efforts to address electricity challenges. These pose serious questions insofar as sovereign guarantee measures provided by the state. Moreover, in view of the acute shortage of capital for infrastructure development in developing economies, especially in the energy sector, there is an omnipresent question around the adequacy of these security measures. This thesis canvasses the use of sovereign guarantee measures normative to Pakistan’s energy sector, adopting a three-tier approach. First, this thesis attempts to discuss the highly leveraged nature and structure of project finance transactions. These measures are explained as an area of immense importance, especially from an energy sector standpoint. This form of finance is especially important for infrastructure projects in volatile, risky jurisdictions. The second tier focuses on risk-mitigation strategies adopted by host states especially in an unregulated or poor investment regime. It examines sovereign guarantees offered by host states, with a specific focus on legal structures under a suretyship arrangement from a Common law perspective. Whilst undertaking a thorough, discursive analysis this thesis reviews the existing frameworks of the organisations engaged within Pakistan’s energy cycle to determine the adequacy of any guarantees. In an interesting twist, this study adopts the structural and functional tests laid out in various cases to determine the adequacy of sovereign guarantee frameworks. Last, this thesis reviews third-party risk-mitigation instruments with a specific focus on MIGA’s risk insurance as a measure of either an additional or replacement form of security.
Supervisor: Not available Sponsor: Economic and Social Research Council
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available
Keywords: HD28 Management. Industrial Management ; HG Finance