What is a risk of infrastructure assets related to local community reactions?

The correct answer highlights a significant risk associated with infrastructure assets: opposition by local interest groups. When planning and executing infrastructure projects, it is common for local communities or interest groups to have concerns about potential impacts. These concerns can range from environmental effects, changes to the community landscape, noise, and increased traffic, to issues related to property rights and displacement.

Local opposition can lead to delays in project timelines, increased costs, and sometimes even project cancellation. This resistance is a critical risk factor that developers and investors must consider, as it may affect not only the viability of a project but also its overall success in addressing the needs of the community it serves. Understanding this dynamic is crucial for effective stakeholder engagement and community relations in infrastructure development.

In contrast, the other options do not directly capture the essence of a risk related to local community reactions. High demand for investment might suggest a favorable environment for infrastructure projects, while strong government support indicates a robust framework promoting development rather than risk. Immediate project benefits could indicate potential positive outcomes but do not acknowledge the complexities of local sentiment that can jeopardize those benefits.