There are many risks associated with dam projects. Below are the ones I can think of:
- Political Risks: Political risks include the following:
- Changes in regulations for dams (dams are projects that affect the public and are usually subject to many regulations)
- Non-popularity with the surrounding communities. For example, the dam can be harmful to surrounding communities, so what they'll do is that they either protest against building the dam or resort to their local MP who will push for actions at the government's level.
- Economical Risks: Although dam projects are usually funded by the government, they can have a very large cost overrun that the government might decide to cancel them altogether.
- Technical Risks: The technical risks that are related to dams are many. For example, what if the dam walls cannot withstand the water's pressure, what if there's a flood, what if there are problems with the location itself (quality of earth, quality of stone, etc...)
Other risks include safety risks, environmental risks, labor risks, etc...