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Submitted by Vasant Tiwari on

The is a pervasive problem, which very often plagues projects leading to cost and time overrun, and renegotiations on concession period, and concession fee. This scenario disrupts and leads to failure of many projects which have achieved success in identifying a developer, which in itself is a tedious and long drawn process. The problem more often is that the parties in the transaction viz. public agency, developer and lender often function as adversaries rather than partners, and the transaction advisor is dragged into the scuffle to help restore some semblance of order to the process. This is unforeseeable at the start of the transaction, and is not budgeted into the scope as well as cost of advisory services, leading the inability on the part of the advisor to provide continued support to the process due to financial reasons. Even the process of leading to commercial close if often unpredictable and fixed fee advisory services prove inadequate in coping with the same.