Renegotiating Previous Governments' Privatisation Deals: The 1997 UK Windfall Tax On Utilities And International Law
Article from: OGEL Archive issue , in International Oil, Gas & Energy Dispute Management
Summary
Our discussion has identified the considerable political risk faced by a foreign investor when buying into privatisation when and if the privatised assets turn out to be profitable. It is easy to construct the "excess profit" notion when the risk that was present during the privatisation process is ignored and when only subsequent developments, and not the risk nor failures in other cases of such investment are taken into account. Behind investment into privatisation is often a quite narrow perspective - fuelled by the promotors and advisers of such deals - which downplays the ...