Your SlideShare is downloading. ×
Electronic Documentation for SPV
Electronic Documentation for SPV
Electronic Documentation for SPV
Electronic Documentation for SPV
Electronic Documentation for SPV
Electronic Documentation for SPV
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Electronic Documentation for SPV

1,703

Published on

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
1,703
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
31
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. ELECTRONIC DOCUMENTATION FORM 1. Report Title and Type (Thesis): Special Purpose Vehicle (SPV) for Infrastructure Projects Financing through Public-Private Partnerships (PPPs) 2. Name of the Author: Abu Naser Chowdhury 3. Name of Advisor and Committee Members: Dr. Chotchai Charoenngam (Chairperson) Dr. Pannapa Herabat Dr. B.H.W. Hadikusumo 4. Field of Study : Construction, Engineering and Infrastructure Management 5. School: School of Engineering and Technology 6. Abstract: The development of special purpose vehicle (SPV) is essential for successful financial closeout of public-private partnership (PPP) projects. The financing of infrastructure projects depends on the anticipated financial performance of the SPV. Ambitious and improper setup of SPV causes suffering to project, forces restructuring debt mechanism and even bankruptcy to giant companies. Concerted efforts from the government and private sectors, as well as political, legal and financial issues need to deal with for smooth mechanism of SPV. These issues have been identified and evaluated from twelve worldwide infrastructure projects. It is found that different projects used different SPV structure. An Attempted has taken to identify the attributes governing the setup of SPV in those cases. Furthermore, six cases out of twelve in Asia and Mediterranean Middle East are screened out for in-depth analysis on financial strategies, legal framework, contract, securities for the SPV framework. The findings are based on a variety of diverse situations. Finally, a SPV structure for infrastructure projects in general has been developed, addressing key issues in five areas: (1) finance-ability; (2) sources of funds; (3) securities and agreements; (4) sovereign support; and (5) credit enhancement. The research findings should enable public as well as private sector clients to establish more efficient SPV with respect to financial framework for infrastructure projects. 7. Keywords: Special Purpose Vehicle, Concession, Equity, Debt repayment, Host government, Export Credit Agencies, Multilateral Development Banks, Off-take, Sovereign Support, Guarantee 8. References:
  • 2. Abdul-Aziz, A.R. (2001). Unraveling of BOT schemes: Malaysia’s Indah Water Konsortium. Journal of Construction Engineering and Management, 127(6), 457- 460. Albouy, Y. and Bousba, R. The Impact of IPPs in Developing Countries- Out of Crisis and into the Future, The World Bank Private Sector (www.worldbank.org), Note 168, December 1998. Alfen, H. W. (2006). The German Procurement Process for BOT-type Projects, EAP3N- Teaching Sessions, Video conference presentation, Weimar/Bangkok, 11 January 2006. Asenova, D. and Beck, M. (2003). A financial perspective on risk management in public- private partnerships. In Akintoye, Beck & Hardcastle (Eds.), Public-Private Partnerships: Managing risks and opportunities (pp. 127-151). London: Blackwell Science Ltd. Becker, H. S. (1996). The epistemology of qualitative research. In R. Josser, A. Colby & R. A. Shweder (Eds.), Ethnography and Human development: Context and meaning in social inquiry (pp. 205-216). Cambridge, England: Cambridge University Press. Bing, L., Akintoye, A., Edwards, P.J. and Hardcastle, C. (2005). The allocation of risk in PPP/PFI construction projects in the UK. International Journal of Project Management, 23, 25-35. Chang, L.M. and Chen, P.H. (2000). BOT Financial Model: Taiwan High Speed Rail Case. Journal of Construction Engineering and Management, 127(3), 214-222. Cooper, R.D. and Schindler, S.P. (2003). Business Research Methods, (8th ed.), Singapore: The McGrawHill. Dailami, M. and Klein, M. (1997). Government Support to Private Infrastructure Projects in Emerging Markets. Dealing with Public Risk in Private Infrastructure, The World Bank, 21-37. Deane, J. (2002). Private sector participation in desalination in the Mediterranean Middle East (MME)- past, present and future. Desalination Journal, 152, 57-66. Digital Library and Archives, (2005). Choosing Qualitative Research: A Primer for Technology Education Research. Retrieved September 29, 2005 from http:// www.scholar.lib.vt.edu/ejournals/JTE/v9n1/hoepfl.html Doh, P. J. and Ramamurti, R. (2003). Reassessing Risk in Developing Country Infrastructure. Long Range Planning Journal, 36, 337-353.
  • 3. Eisner, E. W. (1991). The enlightened eye: Qualitative inquiry and the enhancement of educational practice. New York, NY: Macmillan Publishing Company. Ellis, S. (1999). Financing options. The Private Finance Initiative Journal, 3(6), 60-61. Esty, C.B. (2004). Why Study Large Projects? An Introduction to Research on Project Finance. European Financial Management, 10(2), 213-224. Fabozzi, F.J. (2001). Accessing Capital Market Through Securitization. Pennsylvania: Author. Finlayson, J. A. (2002, February). The What and Why of Public-Private Partnerships [Electronic version]. Business Council of British Columbia, 9(1), 1-6. Finnerty, J.D. (1996). Project Financing: Asset-Based Financial Engineering. John Wiley & Sons, Inc. Ghosh, S. and Jintanapakanont, J. (2004). Identifying and assessing the critical risk factors in an underground rail project in Thailand. International Journal of Project Management, 22, 633-643. Gonzales, A.D. and Paul, H. (2000). Financing of private infrastructure investments in the emerging markets of Southeast Asia. Journal of Financial Management of Property and Construction, 8(2), 61-78. Grimsey, D. and Lewis, M.K. (2002). Evaluating the risks of public private partnership for infrastructure projects. International Journal of Project Management, 20, 107- 118. Gupta, J.P. and Sravat, A. (1998). Development and Project financing of private power projects in developing countries: a case study of India. International Journal of Project Management, 16(2), 99-105. Hoepfl, M. C. (1997). Choosing Qualitative Research: A Primer for Technology Education Researchers. Journal of Technology Education, 9(1), 3-20. International Finance Corporation (1999). Project Finance in Developing Countries. Lessons of Experience no. 7 Johnson, S.D. (1995). Will our research hold up under scrutiny? Journal of Industrial Teacher Education, 32(2), 3-6. Khan, M.F.K. and Parra, R. J. (2003). Financing Large Projects: Using Project Finance Techniques and Practices. Singapore, Pearson Prentice Hall.
  • 4. Kumaraswamy, M.M. and Zhang, X.Q. (2001). Governmental role in BOT-led infrastructure development. International Journal of Project Management, 19, 195-205. Lam, P.T.I. (1999). A sectoral review of risks associated with major infrastructure projects. International Journal of Project Management, 17(2), 77-87. Lloyd-Jones, G. (2003). Design and control issues in qualitative case study research. International Journal of Qualitative Methods, 2(2). Article 4. Retrieved September 29, 2005 from http://www. ualberta.ca/iiqm/backissues/2_2/pdf/lloydjones.pdf Maxwell, J. A. (1996). Qualitative Research Design: An Interactive Approach, Thousand Oaks, CA: Sage Publication Inc. Miles, M. B., and Huberman, A. M. (1994). An expanded sourcebook: Qualitative data analysis. International Educational and Professional Publisher, CA: Sage Publication Inc. Neuman, W. L. (1997). Social research methods: Qualitative and quantitative approaches. (3rd ed.). MA: Allyn & Bacon. Nevitt, P.K. and Fabozzi, F. (1995). Project Financing, (6th ed.), Euromoney Publication Ogunlana, S. O. (1997). Build Operate Transfer procurement traps: examples from transportation projects in Thailand. Proc., CIB W92 Symp. On Procurement, IF Research Corporation, Montreal, 585-594. Pacelle, M., Schoeder, M. and Emshwiller, J. (2001). Enron Has One-Year Restructuring Target. The Wall Street Journal, 12/13/01, p.A3. Park, T. (1998). Private infrastructure development in Asia. Journal of Project Finance, 4(3), 25-33. Patton, M.Q. (1990). Qualitative Evaluation and Research methods.(2nd ed.), Newbury Park, CA: Sage Publication Inc. Pickering, C. (1999). The asset option. The Private Finance Initiative Journal, 3(6), 64. Ramamurti, R. (2003). Can government make credible promise? Insights from infrastructure projects in emerging economics. Journal of International Management, 9, 253-269. Roll, M. and Verbeke, A (1998). Financing of the Trans-European High-Speed Rail Network: New Forms of Public-Private Partnerships. European Management Journal, 16(6), 706-713.
  • 5. Schaufelberger, J.E. and Wipadapisut, I. (2003). Alternate Financing Strategies for Build- Operate-Transfer Projects, Journal for Construction Engineering and Management, 129(2), 205-213. Senturk, H.A., Yazici, G. and Kaplanoglu, B. (2004). Case Study: Izmait Domestic and Industrial Water Supply Build-Operate-Transfer Project. Journal of Construction Engineering and Management, 130(3), 449-454. Strauss, A. and Corbin, J (1990). Basics of qualitative research: grounded theory procedures and techniques. Newbury Park: Sage Publication Inc. Tiong, L.K.R. and Alum, Jahidul (1997). Financial commitments for BOT projects. International Journal of Project Management, 15(2), 73-78. Tiong, R. and Anderson, J. A. (2003). Private-public partnership risk assessment and management process: the Asian Dimension. In Akintoye, Beck & Hardcastle (Eds.), Public-Private Partnerships: Managing risks and opportunities (pp. 225- 243). London: Blackwell Science Ltd. Tiong, L.K.R. (1990). BOT projects: risks and securities. Construction Management and Economics, 8, 315-328. Tiong, L.K.R. and Ye, S. (2003). Effects of Tariff Design in Risk Management of Privately Financed Infrastructure Projects. Journal of Construction Engineering and Management, 129(6), 610-618. Trujillo, J.A., Cohen, R., Freixas, X. and R, Sheehy. (1997). Infrastructure Financing with unbundled mechanism, No. IFM-109, Washington DC: Inter-American Development Bank. Available online at: http://www.iadb.org/sds/doc/1208eng.pdf Wang, S.Q. and Tiong, L.K. (2000). Case study of government initiatives for PRC’s BOT power plant project. International Journal of Project Management, 18, 69-78. Wardman, M. (2004). Public transport values of time. Transport Policy, 11, 363-377. Wolfs, M. and Woodroffe, S. (2002). Structuring and financing international BOO/BOT desalination projects. Desalination, 142, 101-106. Yin, R. K. (2003). Case Study Research: Design and Methods. (3rd ed.), Thousand Oaks: Sage Publication Inc. Zhang, X. (2005). Financial Viability Analysis and Capital Structure Optimization in Privatized Public Infrastructure Projects. Journal of Construction Engineering and Management, 131(6), 656-668.
  • 6. Zhang, X. (2005). Paving the Way for Public-Private Partnerships in Infrastructure Development. Journal of Construction Engineering and Management ,131(1), 71-80. Zhang, X. (2005). Critical Success Factors for Public-Private Partnerships in Infrastructure Development. Journal of Construction Engineering and Management, 131(1), 3-14. Zhang, X. (2004). Concessionaire Selection: Methods and Criteria. Journal of Construction Engineering and Management, 130(2), 235-244. Zhang, X.Q., Kumaraswamy, M.M., Zheng, W. and Palaneeswaran, E. (2002). Concessionaire Selection for Build-Operate-Transfer Tunnel Projects in Hong Kong. Journal of Construction Engineering and Management, 128(2), 155-163.

×