A remarkable contrarian play is the country’s infrastructure sector.
This is why I am sticking my neck out.
In the past, whenever infrastructure companies worked for the government, there was always the possibility of a disputed delivery (‘I asked for this, you gave me that’). Each time this transpired, the vendor and customer locked into arbitration for years (often resolution-less).
The result: No remuneration for much of the expenses incurred, a need to stay in business by addressing new contracts, the possibility of additional arbitration and borrowing working capital at high costs to plug the revenue gap.
This is why I am sticking my neck out.
In the past, whenever infrastructure companies worked for the government, there was always the possibility of a disputed delivery (‘I asked for this, you gave me that’). Each time this transpired, the vendor and customer locked into arbitration for years (often resolution-less).
The result: No remuneration for much of the expenses incurred, a need to stay in business by addressing new contracts, the possibility of additional arbitration and borrowing working capital at high costs to plug the revenue gap.
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper
