The document discusses the India Infrastructure Project Development Fund (IIPDF) and its role in financing infrastructure projects. Key points:
- IIPDF was created by the Ministry of Finance with Rs. 100 crore to support development of bankable public-private partnership projects.
- It aims to increase quality and quantity of bankable projects by providing funding for project development costs like feasibility studies.
- An Empowered Institution oversees the fund and selects projects for funding. Sponsoring authorities can apply for funding up to 75% of development costs.
- Funding is disbursed in installments based on milestones. Successful projects must repay funding plus a fee while unsuccessful projects do not have to
Performance-based budgeting aims to improve the effectiveness and efficiency of public expenditure by linking funding to results. It uses performance information like indicators, evaluations, and program costings to make this link. The impact may be felt through improved prioritization of spending and better service effectiveness or efficiency. Some key aspects include defining measurable objectives and impacts for programs, developing alternatives to achieve objectives, and evaluating programs based on cost-benefit analysis to determine priority for funding. While it promotes efficient resource allocation, limitations include increased paperwork and subjective ranking of programs.
Zero Based Budgeting (ZBB) requires justification of all expenses for each new budget period, regardless of past budgets. It involves identifying decision units, developing alternative decision packages for each unit, and ranking packages based on cost-benefit analysis. Key steps include defining minimum and incremental effort levels for activities, and prioritizing funding based on package rankings. ZBB aims to improve efficiency by re-evaluating all expenditures, but requires significant effort. Alternatives like priority budgeting and target-based budgeting are less intensive but still focus on value and priorities over incremental increases.
Zero-based budgeting is a method of budgeting where all expenses must be justified for each new period, starting from zero. It identifies the most efficient use of resources to achieve objectives. The marketing department budget for Company XYZ would be determined through zero-based budgeting by justifying each person and expense rather than simply increasing last year's budget. This approach identified that a construction equipment company could make certain parts in-house more cheaply than outsourcing, saving costs over traditional budgeting.
Budgetary control involves companies establishing budgets for revenue, expenses, assets and liabilities in advance of an accounting period. Managers prepare functional budgets for their departments, which are then combined into a master budget. Actual performance is continuously compared to budgets to ensure plans are achieved or provide a basis for revision. Budgetary control coordinates activities, provides responsibility accounting, motivates managers, and establishes a system for planning and control through regular budget reviews.
The document summarizes key aspects of the 2019-20 Indian Union Budget as it relates to education. It notes that the estimated education budget for 2019-20 is Rs. 93,843 crore, up from Rs. 85,010 crore in 2018-19. It also outlines innovations like integrated B.Ed. programs and the "Revitalizing Infrastructure and Systems in Education" initiative. The budget allocates Rs. 3,27,879 crore for Centrally Sponsored Schemes and Rs. 38,572 crore for the National Education Mission, up from Rs. 32,334 crore the previous year. It also includes 10% reservation for economically weaker sections in education and jobs.
The document discusses different types of budgets and the budgeting process of Eravur Urban Council in Sri Lanka. It describes various ways to classify budgets, such as by function, flexibility, time period, and how they are prepared. It then provides examples of budgets like sales, production, and cash budgets. Finally, it explains how Eravur Urban Council uses participatory budgeting and zero-based budgeting in its process, which involves input from the public and justifying all expenditures.
IFRS are principles-based accounting standards set by the IASB to promote global financial reporting consistency. Ethiopia has adopted IFRS and established the Accounting and Auditing Board of Ethiopia to oversee the implementation of IFRS for public interest entities, small and medium enterprises, and non-profits according to a staged rollout plan concluding in 2019. While IFRS and US GAAP have converged in many areas, differences remain in accounting treatments for items like inventory, contingencies, and classification of financial instruments.
stages of planning, programming and budgeting system (ppbs) Kavitha Ravi
The Planning, Programming, Budgeting System (PPBS) involves three main stages:
1) Planning which identifies goals and objectives for each major activity.
2) Programming which analyzes proposed programs to achieve objectives and estimates total costs.
3) Budgeting which performs cost/benefit analyses to select projects for funding.
The key advantages of PPBS are that it integrates program/project formulation, budget allocation, and evaluation in a systematic way. It also aims to maximize social benefits while prudently using scarce resources.
Performance-based budgeting aims to improve the effectiveness and efficiency of public expenditure by linking funding to results. It uses performance information like indicators, evaluations, and program costings to make this link. The impact may be felt through improved prioritization of spending and better service effectiveness or efficiency. Some key aspects include defining measurable objectives and impacts for programs, developing alternatives to achieve objectives, and evaluating programs based on cost-benefit analysis to determine priority for funding. While it promotes efficient resource allocation, limitations include increased paperwork and subjective ranking of programs.
Zero Based Budgeting (ZBB) requires justification of all expenses for each new budget period, regardless of past budgets. It involves identifying decision units, developing alternative decision packages for each unit, and ranking packages based on cost-benefit analysis. Key steps include defining minimum and incremental effort levels for activities, and prioritizing funding based on package rankings. ZBB aims to improve efficiency by re-evaluating all expenditures, but requires significant effort. Alternatives like priority budgeting and target-based budgeting are less intensive but still focus on value and priorities over incremental increases.
Zero-based budgeting is a method of budgeting where all expenses must be justified for each new period, starting from zero. It identifies the most efficient use of resources to achieve objectives. The marketing department budget for Company XYZ would be determined through zero-based budgeting by justifying each person and expense rather than simply increasing last year's budget. This approach identified that a construction equipment company could make certain parts in-house more cheaply than outsourcing, saving costs over traditional budgeting.
Budgetary control involves companies establishing budgets for revenue, expenses, assets and liabilities in advance of an accounting period. Managers prepare functional budgets for their departments, which are then combined into a master budget. Actual performance is continuously compared to budgets to ensure plans are achieved or provide a basis for revision. Budgetary control coordinates activities, provides responsibility accounting, motivates managers, and establishes a system for planning and control through regular budget reviews.
The document summarizes key aspects of the 2019-20 Indian Union Budget as it relates to education. It notes that the estimated education budget for 2019-20 is Rs. 93,843 crore, up from Rs. 85,010 crore in 2018-19. It also outlines innovations like integrated B.Ed. programs and the "Revitalizing Infrastructure and Systems in Education" initiative. The budget allocates Rs. 3,27,879 crore for Centrally Sponsored Schemes and Rs. 38,572 crore for the National Education Mission, up from Rs. 32,334 crore the previous year. It also includes 10% reservation for economically weaker sections in education and jobs.
The document discusses different types of budgets and the budgeting process of Eravur Urban Council in Sri Lanka. It describes various ways to classify budgets, such as by function, flexibility, time period, and how they are prepared. It then provides examples of budgets like sales, production, and cash budgets. Finally, it explains how Eravur Urban Council uses participatory budgeting and zero-based budgeting in its process, which involves input from the public and justifying all expenditures.
IFRS are principles-based accounting standards set by the IASB to promote global financial reporting consistency. Ethiopia has adopted IFRS and established the Accounting and Auditing Board of Ethiopia to oversee the implementation of IFRS for public interest entities, small and medium enterprises, and non-profits according to a staged rollout plan concluding in 2019. While IFRS and US GAAP have converged in many areas, differences remain in accounting treatments for items like inventory, contingencies, and classification of financial instruments.
stages of planning, programming and budgeting system (ppbs) Kavitha Ravi
The Planning, Programming, Budgeting System (PPBS) involves three main stages:
1) Planning which identifies goals and objectives for each major activity.
2) Programming which analyzes proposed programs to achieve objectives and estimates total costs.
3) Budgeting which performs cost/benefit analyses to select projects for funding.
The key advantages of PPBS are that it integrates program/project formulation, budget allocation, and evaluation in a systematic way. It also aims to maximize social benefits while prudently using scarce resources.
The document discusses budgetary control and flexible budgets. It defines budgetary control as the establishment of budgets relating to executive responsibilities and requirements of policy, with the continuous comparison of actual to budgeted results to ensure objectives are met or require revision. Flexible budgets vary based on activity levels, like preparing budgets for production of 7,000 and 9,000 units based on variable and fixed cost schedules. Budgetary control involves planning, coordination, communication, and control to improve overall efficiency.
This document provides an overview of budgets and budgetary control. It defines a budget as a quantified financial plan for a defined future period. Budgets have benefits like helping control spending, focus on goals, and organize finances. The key types of budgets discussed include sales, production, costs, materials, purchases, labor, overhead, selling & distribution, administration, capital expenditures, and cash budgets. Budgetary control involves establishing budgets, comparing actuals to budgets, and taking corrective action for variances. The objectives of budgetary control are planning, coordination, communication, motivation, control, and performance evaluation.
This document discusses responsibility accounting. It defines responsibility accounting as a system that collects planned and actual accounting information for responsibility centers. Responsibility centers are organizational units for which a manager is responsible for costs, revenues, or investment funds. There are four main types of responsibility centers: cost centers, revenue centers, profit centers, and investment centers. Responsibility accounting improves decision making, speed, and motivation by assigning accountability to managers of responsibility centers.
Zero-based budgeting (ZBB) requires managers to justify all expenditures as if the budget is being created for the first time. The process involves identifying organizational decision units, constructing decision packages that analyze activities and funding alternatives, and ranking packages to allocate resources. ZBB aims to eliminate unnecessary costs by questioning existing resource allocations and requiring justification of all spending. While time-intensive, ZBB can help organizations set priorities and ensure costs align with objectives, particularly in uncertain economic environments. Successful implementation requires training managers, clear procedures, management commitment, and adequate time for the rigorous analysis involved.
The document presents an overview of different approaches to budgeting in the public sector, including incremental budgeting which is currently used in Northern Ireland. It discusses recommendations from reports to move towards budgeting approaches that more explicitly link budgets to performance and outcomes. Alternative approaches described include zero-based budgeting, priority-based budgeting, and performance-based budgeting. The document provides details on the advantages and disadvantages of different budgeting methods.
The document discusses budgets and budgetary control. It defines a budget as a written plan of action prepared in advance based on objectives to be attained, expressed in monetary and/or physical units. Budgets are prepared for the implementation of management policy and may provide sales targets or production targets. Budgets are used as a means of control by comparing actual results to the budget and taking corrective action for deviations. Budgetary control refers to using budgets to control a firm's activities.
This document provides an overview of budgeting and the budgeting process. It defines key terms like budgets, the master budget, and different types of budgets such as operational budgets, the cash budget, and capital budgets. It explains the purposes of budgeting like planning, allocating resources, and evaluating performance. The document also describes how to develop specific budgets such as the sales budget, production budget, materials budget, and cash budget. It provides examples of how to calculate figures for these various budgets.
Breakeven Analysis- A decision-making aid that enables a manager to determine whether a particular volume of sales will result in losses or profits.
Made up of four basic concepts
Fixed costs- costs that do not change
Variable costs- costs that rise in propitiation to sales
Revenue- the total income received
Profit- the money you have after subtracting fixed and variable cost from revenue
Successful projects require both managerial and technical excellence. Many times, projects fail due to multiple managerial issues. This paper describes key issues leading to project failure.
This PPT delivered in a Course on Fiscal Decentralization – Organised by World Bank Institute at Khartoum - Sudan from December 14-18, 2008 provides principles of revnue assignment from national governments to sub and sub-sub national governments
The document discusses budgeting and budgetary control. It defines a budget as a financial plan for a defined period. Budgets estimate profit potential, are stated in monetary terms, generally cover one year, and require management approval. The key aspects of budgets are setting objectives, understanding cost behavior, coordination, communication, flexibility, and accounting data support. Budgets are used for planning, coordination, responsibility assignment, performance evaluation, and adapting to changing conditions. Budgetary control involves establishing budgets, tracking actual performance, analyzing variances, and taking corrective actions.
This document provides an overview of capital investment, types of capital investment, and capital budgeting. It defines capital investment as funds invested in a firm for business objectives. The types of capital investment are physical assets, monetary assets, and intangible assets. Capital budgeting is the planning process used to determine if long-term investments are worth pursuing, using methods like payback period, net present value, internal rate of return, and more.
Zero-based budgeting requires all expenses to be justified for each new period, starting from zero rather than using the previous budget. It differs from traditional budgeting by being decision-oriented and focusing on cost-benefit analysis rather than just monitoring expenditures. The zero-based budgeting process involves setting objectives, identifying operational areas, developing decision packages, performing cost-benefit analyses, selecting packages, and finalizing the budget. It aims to efficiently allocate resources but can be time-consuming and force justification of all expenditure details.
This document provides an overview of budgetary planning and control systems. It discusses the objectives of such systems which include ensuring communication, coordination, control and motivating employees. Various budgeting techniques are described such as top-down vs bottom-up budgeting, incremental budgeting, fixed vs flexible budgets, zero-based budgeting and activity-based budgeting. Feedback and feedforward control are also explained.
The document defines various types of variances that can occur in cost accounting, including material, labor, and overhead variances. It provides formulas to calculate variance amounts and examples showing how to compute variances based on standard and actual costs. Variances are classified into price, usage/efficiency, and mix categories and can be favorable or unfavorable depending on whether actual costs are lower or higher than standards.
This document discusses different types of budgets used in business. Budgets can be classified in several ways: by time (long-term vs short-term), by capacity (fixed vs flexible), and by scope (functional vs master). Functional budgets include sales, production, materials, purchase, and cash budgets. A master budget integrates all functional budgets to estimate profit/loss and financial position. Budgets can also be classified by receipts and expenditures as capital budgets or revenue budgets. In conclusion, budgets are prepared maps that aim to optimize resource utilization according to organizational policies and functions.
A budget is a plan for projected income and expenses over a defined period. Budgeting involves formulating budgets, while budgetary control uses budgets to plan and control all aspects of production. Key elements of budgetary control include preparing budgets for each department, conducting ongoing comparisons of actual vs. budgeted performance, and taking corrective actions on variances. Budgets can be classified by time period (long-term vs. short-term), function (sales, production, etc.), or flexibility (fixed vs. flexible). Zero-based budgeting requires justifying all expenses for each new period without relying on previous budgets.
Activity-based costing (ABC) assigns overhead costs to products and services based on their use of resources such as machine hours or labor hours. It was developed to more accurately assign indirect costs than traditional costing methods. ABC identifies activities performed in an organization and assigns costs to these activities using cost drivers. The costs of activities are then assigned to products or services based on their use of each activity. This provides managers with more accurate product costs to make better-informed decisions.
A formal statement of the financial resources set aside for carrying out specific activities in a given period of time. A budget is prepared for the effective utilization of resources. It is based on the implementations of a forecast and related to planned events.
There are two types of budgets: fixed budgets which remain unchanged regardless of activity levels, and flexible budgets which can be adjusted for different activity levels. Flexible budgets are prepared for multiple capacity levels and divide costs into fixed, variable and semi-variable categories so the budget can change based on production volume. They allow for easier comparison of actual to budgeted figures and better cost control.
This document is a draft final report for the World Bank on infrastructure public-private partnerships (PPP) financing in India from September 2007. It analyzes the present sources of financing for PPP infrastructure projects in India, including debt from commercial banks and equity sources. It identifies constraints such as limited bank lending and recommends changes to reduce constraints, such as developing the bond market and tapping insurance and pension funds. The report also provides sector-wise analysis and examines international practices to inform financing of PPP projects in India.
The document discusses India's smart cities initiative which aims to develop 100 smart cities through public-private partnerships. A sum of Rs. 7060 crore has been allocated for this project in the 2014-15 budget. Smart cities are defined as ecologically friendly and technologically integrated urban spaces that use information technology to improve efficiency. They aim to create livable, workable and sustainable cities. However, challenges include ensuring projects are self-sustaining without controversial land acquisition and that resources also go towards improving existing cities' basic infrastructure through urban renewal.
The document discusses budgetary control and flexible budgets. It defines budgetary control as the establishment of budgets relating to executive responsibilities and requirements of policy, with the continuous comparison of actual to budgeted results to ensure objectives are met or require revision. Flexible budgets vary based on activity levels, like preparing budgets for production of 7,000 and 9,000 units based on variable and fixed cost schedules. Budgetary control involves planning, coordination, communication, and control to improve overall efficiency.
This document provides an overview of budgets and budgetary control. It defines a budget as a quantified financial plan for a defined future period. Budgets have benefits like helping control spending, focus on goals, and organize finances. The key types of budgets discussed include sales, production, costs, materials, purchases, labor, overhead, selling & distribution, administration, capital expenditures, and cash budgets. Budgetary control involves establishing budgets, comparing actuals to budgets, and taking corrective action for variances. The objectives of budgetary control are planning, coordination, communication, motivation, control, and performance evaluation.
This document discusses responsibility accounting. It defines responsibility accounting as a system that collects planned and actual accounting information for responsibility centers. Responsibility centers are organizational units for which a manager is responsible for costs, revenues, or investment funds. There are four main types of responsibility centers: cost centers, revenue centers, profit centers, and investment centers. Responsibility accounting improves decision making, speed, and motivation by assigning accountability to managers of responsibility centers.
Zero-based budgeting (ZBB) requires managers to justify all expenditures as if the budget is being created for the first time. The process involves identifying organizational decision units, constructing decision packages that analyze activities and funding alternatives, and ranking packages to allocate resources. ZBB aims to eliminate unnecessary costs by questioning existing resource allocations and requiring justification of all spending. While time-intensive, ZBB can help organizations set priorities and ensure costs align with objectives, particularly in uncertain economic environments. Successful implementation requires training managers, clear procedures, management commitment, and adequate time for the rigorous analysis involved.
The document presents an overview of different approaches to budgeting in the public sector, including incremental budgeting which is currently used in Northern Ireland. It discusses recommendations from reports to move towards budgeting approaches that more explicitly link budgets to performance and outcomes. Alternative approaches described include zero-based budgeting, priority-based budgeting, and performance-based budgeting. The document provides details on the advantages and disadvantages of different budgeting methods.
The document discusses budgets and budgetary control. It defines a budget as a written plan of action prepared in advance based on objectives to be attained, expressed in monetary and/or physical units. Budgets are prepared for the implementation of management policy and may provide sales targets or production targets. Budgets are used as a means of control by comparing actual results to the budget and taking corrective action for deviations. Budgetary control refers to using budgets to control a firm's activities.
This document provides an overview of budgeting and the budgeting process. It defines key terms like budgets, the master budget, and different types of budgets such as operational budgets, the cash budget, and capital budgets. It explains the purposes of budgeting like planning, allocating resources, and evaluating performance. The document also describes how to develop specific budgets such as the sales budget, production budget, materials budget, and cash budget. It provides examples of how to calculate figures for these various budgets.
Breakeven Analysis- A decision-making aid that enables a manager to determine whether a particular volume of sales will result in losses or profits.
Made up of four basic concepts
Fixed costs- costs that do not change
Variable costs- costs that rise in propitiation to sales
Revenue- the total income received
Profit- the money you have after subtracting fixed and variable cost from revenue
Successful projects require both managerial and technical excellence. Many times, projects fail due to multiple managerial issues. This paper describes key issues leading to project failure.
This PPT delivered in a Course on Fiscal Decentralization – Organised by World Bank Institute at Khartoum - Sudan from December 14-18, 2008 provides principles of revnue assignment from national governments to sub and sub-sub national governments
The document discusses budgeting and budgetary control. It defines a budget as a financial plan for a defined period. Budgets estimate profit potential, are stated in monetary terms, generally cover one year, and require management approval. The key aspects of budgets are setting objectives, understanding cost behavior, coordination, communication, flexibility, and accounting data support. Budgets are used for planning, coordination, responsibility assignment, performance evaluation, and adapting to changing conditions. Budgetary control involves establishing budgets, tracking actual performance, analyzing variances, and taking corrective actions.
This document provides an overview of capital investment, types of capital investment, and capital budgeting. It defines capital investment as funds invested in a firm for business objectives. The types of capital investment are physical assets, monetary assets, and intangible assets. Capital budgeting is the planning process used to determine if long-term investments are worth pursuing, using methods like payback period, net present value, internal rate of return, and more.
Zero-based budgeting requires all expenses to be justified for each new period, starting from zero rather than using the previous budget. It differs from traditional budgeting by being decision-oriented and focusing on cost-benefit analysis rather than just monitoring expenditures. The zero-based budgeting process involves setting objectives, identifying operational areas, developing decision packages, performing cost-benefit analyses, selecting packages, and finalizing the budget. It aims to efficiently allocate resources but can be time-consuming and force justification of all expenditure details.
This document provides an overview of budgetary planning and control systems. It discusses the objectives of such systems which include ensuring communication, coordination, control and motivating employees. Various budgeting techniques are described such as top-down vs bottom-up budgeting, incremental budgeting, fixed vs flexible budgets, zero-based budgeting and activity-based budgeting. Feedback and feedforward control are also explained.
The document defines various types of variances that can occur in cost accounting, including material, labor, and overhead variances. It provides formulas to calculate variance amounts and examples showing how to compute variances based on standard and actual costs. Variances are classified into price, usage/efficiency, and mix categories and can be favorable or unfavorable depending on whether actual costs are lower or higher than standards.
This document discusses different types of budgets used in business. Budgets can be classified in several ways: by time (long-term vs short-term), by capacity (fixed vs flexible), and by scope (functional vs master). Functional budgets include sales, production, materials, purchase, and cash budgets. A master budget integrates all functional budgets to estimate profit/loss and financial position. Budgets can also be classified by receipts and expenditures as capital budgets or revenue budgets. In conclusion, budgets are prepared maps that aim to optimize resource utilization according to organizational policies and functions.
A budget is a plan for projected income and expenses over a defined period. Budgeting involves formulating budgets, while budgetary control uses budgets to plan and control all aspects of production. Key elements of budgetary control include preparing budgets for each department, conducting ongoing comparisons of actual vs. budgeted performance, and taking corrective actions on variances. Budgets can be classified by time period (long-term vs. short-term), function (sales, production, etc.), or flexibility (fixed vs. flexible). Zero-based budgeting requires justifying all expenses for each new period without relying on previous budgets.
Activity-based costing (ABC) assigns overhead costs to products and services based on their use of resources such as machine hours or labor hours. It was developed to more accurately assign indirect costs than traditional costing methods. ABC identifies activities performed in an organization and assigns costs to these activities using cost drivers. The costs of activities are then assigned to products or services based on their use of each activity. This provides managers with more accurate product costs to make better-informed decisions.
A formal statement of the financial resources set aside for carrying out specific activities in a given period of time. A budget is prepared for the effective utilization of resources. It is based on the implementations of a forecast and related to planned events.
There are two types of budgets: fixed budgets which remain unchanged regardless of activity levels, and flexible budgets which can be adjusted for different activity levels. Flexible budgets are prepared for multiple capacity levels and divide costs into fixed, variable and semi-variable categories so the budget can change based on production volume. They allow for easier comparison of actual to budgeted figures and better cost control.
This document is a draft final report for the World Bank on infrastructure public-private partnerships (PPP) financing in India from September 2007. It analyzes the present sources of financing for PPP infrastructure projects in India, including debt from commercial banks and equity sources. It identifies constraints such as limited bank lending and recommends changes to reduce constraints, such as developing the bond market and tapping insurance and pension funds. The report also provides sector-wise analysis and examines international practices to inform financing of PPP projects in India.
The document discusses India's smart cities initiative which aims to develop 100 smart cities through public-private partnerships. A sum of Rs. 7060 crore has been allocated for this project in the 2014-15 budget. Smart cities are defined as ecologically friendly and technologically integrated urban spaces that use information technology to improve efficiency. They aim to create livable, workable and sustainable cities. However, challenges include ensuring projects are self-sustaining without controversial land acquisition and that resources also go towards improving existing cities' basic infrastructure through urban renewal.
Infrastructure Finance Fundamentals (ADN Capital Ventures)Adam Nicolopoulos
Project finance is a method of arranging financing where the lenders rely primarily on the cash flows of the project being financed, rather than the balance sheets of its sponsors. It establishes a single purpose company to develop, build, and operate an infrastructure or industrial project based on its projected cash flows. Project risks are transferred and shared among stakeholders, with lenders relying on the project's assets and cash flows for repayment rather than recourse to the sponsors. Key risks like construction, operation, maintenance, revenue, and permits are typically borne by private sector parties rather than the public sector.
The document discusses the importance of infrastructure development and defines infrastructure. It notes that infrastructure development provides the foundation for countries to capitalize on opportunities from globalization. It then defines infrastructure according to different government agencies and lists key infrastructure sectors. The document also discusses various methods of financing infrastructure projects, including traditional financing, project financing, and concessionary financing instruments. It outlines the project appraisal process and highlights key issues related to appraising large, complex infrastructure projects.
The document discusses the Kyoto Protocol, an international treaty aimed at reducing greenhouse gas emissions. Some key points:
- The Kyoto Protocol sets binding emissions reduction targets for developed countries over two commitment periods: 2008-2012 and 2013-2020.
- 192 parties have ratified the treaty, though the US signed but did not ratify and Canada withdrew in 2011.
- The main goal is to reduce emissions of six key greenhouse gases - carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride.
- Countries can meet targets through domestic action or market mechanisms like emissions trading, joint implementation, and the Clean Development Mechanism which provides
Unit 4: Sources of finance for developmentmattbentley34
The document discusses various sources of finance for development, including international institutions like the IMF and World Bank, Special Drawing Rights (SDRs), foreign direct investment, aid, and potential tax measures. The IMF provides funds and advice to countries with balance of payments problems, while the World Bank's five organizations focus on alleviating poverty through development projects and loans. SDRs serve as potential claims on IMF members' currencies. Foreign direct investment and aid can help development but also have risks and criticisms. Tax measures proposed include a Tobin tax on currency trading and international taxes to fund development.
Traditionally, infrastructure projects in India were owned by the government, but private sector participation is now encouraged due to large investment needs. Private projects are implemented through a special purpose vehicle (SPV) corporate entity. Key parties include project sponsors, the SPV, contractors, lenders, and the government. Infrastructure projects face various risks during construction and operation that must be managed, such as construction risks, market risks, and regulatory risks.
Entrepreneurship - Ideas for today and tommorowHuma Sheikh
In this PPT " ENTREPRENEURSHIP- IDEAS FOR TODAY AND TOMORROW" different aspects are being discussed. Why choose entrepreneurship rather than any formal job is being discussed.
This document discusses infrastructure development through public-private partnerships (PPPs) like build-operate-transfer (BOT) models. It provides details on BOT structuring, including that a private company builds and operates an infrastructure asset for a set concession period before transferring it to the public sector. The document also examines options for PPPs ranging from short-term service contracts to long-term divestitures. As a case study, it outlines plans for Mumbai's first metro rail corridor to address public transportation needs through a PPP.
An entrepreneur is defined as an individual who takes initiative by organizing resources in innovative ways and bearing risks and uncertainty. They identify opportunities, establish visions, persuade others, gather resources, create new ventures, and adapt over time. Entrepreneurship is motivated by background factors, needs for achievement, and supportive business environments. Entrepreneurs pursue opportunities, establish visions, and gather resources to create new ventures.
Presentation made by Özlem AYDIN SAKRAK, Turkish Treasury, at the 9th annual network meeting of Senior Infrastructure & PPP officials held at the OECD, Paris, on 1 March 2016
Chilmark Consulting is a planning and development consultancy firm based in the UK. The document provides an overview of Chilmark Consulting, including their story, values, services, clients, and success stories. Specifically, it discusses that Chilmark was founded in 2013 by a town planner with over 20 years of experience. It aims to deliver best-in-class services focused on complex development projects. Its core values include care, communication, collaboration, commercial focus, and confidence. Services include planning advice, strategies, evidence research, and consultation. Clients include both private and public sector organizations. Success stories highlight projects involving residential and mixed-use development, regeneration schemes, and sustainable urban extensions.
Developing Brownfield Sites - Mike Taylor 220216Mike Taylor
This document discusses brownfield land registers, which local authorities in the UK will be required to compile and annually review. The registers are intended to provide publicly available information on brownfield sites that are suitable for residential development. However, the document notes that the registers may not adequately reflect the real development challenges and risks associated with brownfield land regeneration. These risks include issues like abnormal development costs, market demand uncertainties, and the need for public financial support on some marginal sites. The document concludes that properly accounting for development risks will be important if the registers are to meaningfully align with and support actual brownfield development.
Building future learning spaces by Dr Bader Aloliwialoliwi
Strategies for ensuring secure return on investment when investing in new educational facilities
•• Evaluating capital costs for new educational facility development
•• Assessing the commercial viability of long-term operational costs including maintenance, enrolment projections and community needs
•• Analysing the historic performance of similar schools in the region to get a better indication of future performance over the next 10 to 15 years
Dr Bader Aloliwi, Chief Executive Officer,
The Arabian Education and Training Group, KSA
PlaceEXPO Future Cities: Mike Horner, Muse DevelopmentsPlace North West
Muse Developments is a UK development company established in 1984 with a proven track record of delivering mixed-use regeneration projects in partnership with local councils. The document provides details on Muse's plans to develop two sites in Chester into new commercial and residential quarters with offices, retail, leisure amenities and hundreds of new homes and apartments. It outlines the phasing and funding of the projects as well as the market drivers and challenges for development in city centers.
IIFCL was incorporated in 2006 as a wholly government-owned company to provide financing for infrastructure projects in India. IIFCL provides direct lending, refinancing to banks, and other approved methods of financing. It focuses on sectors like transportation, energy, urban infrastructure, and other approved sectors. IIFCL raises funds through government equity, rupee and foreign currency bonds, and loans from international institutions to provide financing. It finances commercially viable projects and works with lead banks on appraisal and monitoring. Loans are provided with terms like maximum 20% of project cost and pari passu charge with other debt. IIFCL also implements schemes like takeout financing, credit enhancement, and refinancing to banks to further its
Started to create milestones, we, Zodiac Energy Private Limited marked our presence in the year 1992 and operate in the manufacturing/servicing of Energy Solution Providers since 22 years. Our quality services products have been always appreciated by our clients. Our spontaneous attitude and confident approach in offering an excellent range of Solar Photovoltaic, Photovoltaic Solar Power System, Solar Water Heater, Solar Basket, System Integration and Consultancy, Solar Parabolic Trough, Diesel and Gas Generator Sets, Control Panels has deepened our roots in the market. We, Zodiac Energy Private Limited breathe with the aim of fully satisfying our clients with our high-quality products services. We are a unit of highly experienced professionals, all of them contributing at the best of their potentials to offer the highest degree of efficiency and client satisfaction.
This document outlines the stages of design work for wet utilities infrastructure projects. It discusses 5 stages: 1) master planning and data collection, 2) concept design, 3) preliminary design, 4) detailed design, and 5) tender. For each stage, it provides examples of the tasks involved, such as collecting site data, developing design strategies, finalizing layouts, conducting hydraulic modeling, and preparing construction documents. The overall purpose is to plan and design water, wastewater, and irrigation systems to service new infrastructure developments.
This document provides an overview of funding routes for asset management projects in the public sector. It discusses traditional sources of funding such as Public Works Loan Board (PWLB) borrowing as well as alternative sources like grants, private loans, partnerships, and tax incremental funding. The document emphasizes using a business case approach to evaluate options and choose the optimal funding mix by considering factors like costs, risks, and project requirements. It also provides examples of innovative funding deals recently utilized by various UK local authorities.
This document discusses the process of conducting a feasibility study for a new business project. It covers:
- Conducting a market study to establish demand for the product before undertaking a costly feasibility study.
- The feasibility study involves technical and economic feasibility analyses to evaluate the project's location, manufacturing process, costs, and viability.
- After feasibility is established, the promoter determines the project's total cost and financing plan, which includes equity, debt, and other sources of long-term capital.
- Various methods of evaluating investment returns, like payback period and internal rate of return, are used to assess the project's attractiveness.
Emerging Trends in Corporate Finance - Policy Initiatives - Part - 5Resurgent India
Corporate Bonds market in India is at a growing stage and measures are being taken by the regulatory bodies to boost the growth of Corporate Bonds market in India by making necessary amendment in the rules and regulations
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Capital Project Funds are used to account for financial resources used to acquire or construct major capital assets like land, buildings, infrastructure, and equipment. Projects are usually large expenditures that result in long-lived assets. Once a project is complete, any remaining funds are transferred to other funds like debt service funds. Transactions are recorded using journal entries to debit expenses and credit the capital project fund. At the end of the project, the fund is closed out and any remaining balance is transferred to other funds.
Project financing has become widely used in India for large capital intensive infrastructure projects. It involves borrowing funds for a project before construction is complete, with lenders looking primarily to the project's cash flows and assets for repayment rather than the sponsor's balance sheet. Key to project financing is allocating risks through long-term contracts between the project company, construction firms, fuel/offtake suppliers and operators. Project financing emerged in the 1970s for power projects and has since been used for various industries like mining, transportation and manufacturing.
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Financing Issues in Infrastructure, Projects Management
1. Financing Issues in Infrastructure,
Projects Management
and Development
Unit-IV
2. Syllabus
• Financing Issues in Infrastructure, Projects
Management and Development:
• The IIPDF and its role, Background of the IIPDF,
The purpose of the IIPDF, IIPDF funding sources,
The
IIPDF’s
organisational
structure,
Disbursements by the IIPDF, Operational
management, Funding from IIPDF, Evaluation
Procedures and Timeframe, Monitoring, Recovery
of Project Development Funding with Returns,
Risk management.
3. The IIPDF and its Role
Background of the IIPDF
• “India Infrastructure Project Development
Fund” (IIPDF) has been created in Department
of Economic Affairs, Ministry of Finance,
Government of India with an initial corpus of
Rs. 100 crore for supporting the development of
credible
and
bankable
Public
Private
Partnership (PPP) projects that can be offered
to the private sector. The IIPDF has been created
with initial budgetary outlay by the Ministry of
Finance, Government of India.
5. The IIPDF and its Role
The Purpose of the IIPDF
• Department of Economic Affairs (DEA) has
identified the IIPDF as a mechanism through
which Sponsoring Authority will be able to source
funding to cover a portion of the PPP transaction
costs, thereby reducing the impact of costs related
to procurement on their budgets. From the
Government of India’s perspective, the IIPDF must
increase the quality and quantity of „bankable
projects‟ that are processed through the Central or
States’ project pipeline.
7. The IIPDF and its Role
• The IIPDF will be available to the Sponsoring
Authorities for PPP projects for the purpose of
meeting the project development costs which may
include the expenses incurred by the Sponsoring
Authority in respect of feasibility studies, environment
impact studies, financial structuring, legal reviews
and development of project documentation,
including concession agreement, commercial
assessment studies (including traffic studies,
demand assessment, capacity to pay assessment),
grading of projects etc. required for achieving
Technical Close of such projects, on individual or
turnkey basis, but would not include expenses incurred
by the Sponsoring Authority on its own staff.
9. The IIPDF and its Role
• The IIPDF will be available to finance an
appropriate portion of the cost of
consultants and transaction advisors on a
PPP project where such consultants and
transaction advisors are appointed by the
“Sponsoring Authority” either from amongst
the transaction advisers empanelled by
Department of Economic Affairs or through a
transparent system of procurement under a
contract for services.
10. The IIPDF and its Role
• To seek financial assistance from the IIPDF it
would be necessary for the Sponsoring
Authority to create and empower a “PPP
Cell” to not only undertake PPP project
development activities but also address
larger policy and regulatory issues to
enlarge the number of PPP projects in
Sponsoring Authorities‟ shelf.
12. The IIPDF and its Role
• The IIPDF is not a source of grant funding for the
Sponsoring Authorities. The Fund will assist
ordinarily up to 75% of the project development
expenses to the Sponsoring Authority. On successful
completion of the bidding process, the project
development expenditure would be recovered from
the successful bidder. However, in case of failure of
the bid, the assistance would not be recovered. The
Sponsoring Authority would be liable to refund the
amount of assistance received, in case it does not
conclude the bidding process for some reason or does
not contract out the project after the bid process has
been completed.
13. The IIPDF and its Role
• As commitment by the Sponsoring
Authority to the procurement and
ownership of the project is an essential
requirement for a project‟s success,
assistance under IIPDF funding will require
co-funding by the Sponsoring Authority
generally to the extent of 25% of the total
project development cost, which would
include the cost of prefeasibility study to
determine whether a project is amenable to
PPP.
14. The IIPDF and its Role
• The assistance from the IIPDF would ordinarily be
released after the share of the Sponsoring Authority
has been released. Only in exceptional circumstances,
the Empowered Institution (EI) may relax this
condition of co-funding by the Sponsoring
Authority. This has the following implications. First,
the Sponsoring Authorities will have to commit funding
to the feasibility study for preparing the Memorandum
for Consideration (MFC). Second,
• the IIPDF will not pre-empt the decision of the
feasibility study on whether a PPP is appropriate or
not.
15. The IIPDF and its Role
IIPDF funding sources
• The corpus of the IIPDF shall comprise of
initial budgetary outlay of Rs. 100 crores by
the Ministry of Finance, Government of
India. This would be supplemented, should it
become necessary, through budgetary support
by the Ministry of Finance from time to time.
17. The IIPDF and its Role
• As the IIPDF matures, funding from the
multilateral and bilateral agencies could
become
available.
Other
interested
agency(IES), as approved by DEA, including
the bilateral agencies, will be permitted to join
the IIPDF subject to extant Government
instructions on the subject. Contributions
from entities that may have a conflict of
interest in the decision making of the IIPDF
shall not be approved.
18. The IIPDF and its Role
• The minimum amount of contribution from any such agency
shall be Rs. 15 crores and the contribution(s) shall be
governed by the terms and conditions of these Guidelines.
• This threshold limit can be reviewed by the EI from time to
time, with the approval of the Finance Minister.
• The financial management system will be set up to allow for
specific funding and reporting requirements of potential
donors. Thus, donors agencies will also be able to fund
projects in specific sectors with financial management and
reporting that complies with the requirements of these
Guidelines, with the prior approval of the DEA. A
representative of the donor agency may be invited as
special invitee to the meetings of the EI.
19. The IIPDF and its Role
• Within the validity of the IIPDF, the fund will
include any or all accretions to the IIPDF. If it
is decided by the Government to close the
IIPDF at any time in the future, the balance
on that date will be distributed among the
Contributors in the same proportion as the
original contributions made by them.
20. The IIPDF‟s Organisational
Structure
• The IIPDF will be administered by the
Empowered Institution. The composition of the
empowered Institution will be as under:
• Additional Secretary, DEA- Chairperson
• Additional Secretary (Expenditure)
• Representative of Planning Commission not
below the rank of Joint Secretary
• Joint Secretary in the line Ministry dealing
with the subject
• Joint Secretary, DEA – Member Secretary
22. The IIPDF‟s Organisational
Structure
The Empowered Institution will:
• Select projects for which project
development costs will be funded.
• Set the terms and conditions under which
the funding will be provided and recovered
• Set milestones for disbursing and recovering
(where appropriate) the funding.
23. The IIPDF‟s Organisational
Structure
• The Public Private Partnership Cell of the
Department of Economic Affairs, Government
of India will provide support functions to the
Empowered Institution to examine the
applications received for assistance under
IIPDF.
• In due course, as the IIPDF matures, a suitable
autonomous legal structure could be
considered by the Government for the
management of the IIPDF.
24. The IIPDF‟s Organisational
Structure
Disbursements by the IIPDF
• Disbursements by the IIPDF will be made in
instalments based on milestones achieved.
These milestones will be those set out in the
MFC and approved by the EI.
26. Operational Management
Funding from IIPDF
• To seek project development funding from the
IIPDF, the Sponsoring Authority will apply to
the PPP Cell in DEA through the
Memorandum for Consideration, Funding by
the IIPDF will be considered only if the
following requirements are met:
28. Operational Management
• The funding is used on a single project, which is
approved by the Empowered Institution.
• Funding is required for the payment of
transaction advisors appointed by the
Sponsoring Authority, usually in a two-phase
appointment: the first phase is the preparation
of the pre-feasibility study and its subsequent
approval by the EI, and the second phase is the
procurement of the PPP in compliance with
these Guidelines.
29. Operational Management
• The funding by IIPDF will be used for phase two
funding of transaction advisors, that is, after EI‟s
approval for the MFC, based on the pre-feasibility
study, and where the transaction advisors are paid
according to fixed milestone deliverables.
• In order to achieve the aforesaid objectives, PPP Cell
will, inter alia, screen identified proposals for
conducting detailed feasibility studies. For this
purpose, the Sponsoring Authority shall prepare a
MFC with respect to each such proposal. The MFC
would provide justification for undertaking detailed
feasibility studies to be taken up for financing out of the
corpus of the Fund in the prescribed pro-forma.
30. Operational Management
• The MFC shall contain the financial details of the
project. Ordinarily, three types of projects can be posed
for funding under the IIPDF:
• (i) Revenue Generating Commercial Projects
(Concession/BOOT or its variants/Lease contracts):
A project FIRR of 20% or more on the private sector
investment should be demonstrated.
• If the FIRR is below 20% even with VGF of up to 40%
(maximum of 20% from VGF Scheme of GOI and 20%
from the Sponsoring Authority) then the Project shall
not ordinarily be presented before the EI.
32. Operational Management
• Efficiency Enhancement / Cost Savings
Projects (Management or Service contracts or
Engineering, Performance based O&M contracts):
Where there is no or low private sector
investment, the financial savings/enhanced
revenues should ordinarily be able to recover
payouts by government within eight to ten years
of completion of the project. Annuity based
project would also be covered under this category.
33. Operational Management
• Non-revenue generating projects with high
economic returns (e.g. Sewerage System):
• In case of project undertaken in PPP formats
based
on
Economic
Returns
considerations, the project eligibility will be
based on sector preferences to be
established by the EI and would be based on
annuity payments by the sponsoring authority.
35. Operational Management
• The MFC shall further state the cost likely to
be incurred, the duration over which the same
is to be incurred and how the same is
perceived to be recovered by the Sponsoring
Authority.
36. Operational Management
• Proposals for funding under these Guidelines
would cover the entire gamut of PPP projects, i.e.
BOT (Toll), BOT (Annuity), long term
management contracts etc. The decision of the
Empowered Institution about the eligibility of
a project shall be final.
• The IIPDF will provide financial assistance
once an application by the Sponsoring
Authorities has been approved by the EI and
conditions as precedent to funding have been
fulfilled.
38. Evaluation Procedures and
Timeframe
• Applications received by 10th day of a month
shall be considered and decided in the meeting
of the EI in the first week of the succeeding
month.
• The possible decisions are: unconditional
funding approval, approval subject to certain
conditions or no funding (the conditions may
also include confirmation of project details before
a commitment of funding, and an assessment of
the
affordability
and
value-for-money
implications of recovering procurement costs as a
success fee from the project).
40. Evaluation Procedures and
Timeframe
• An agreement including all funding
conditions will be signed by the authorized
signatories from DEA and the Sponsoring
Authority. The assistance from the IIPDF will
be released to the Sponsoring Authority in
accordance with the signed funding
agreement.
41. Evaluation Procedures and
Timeframe
• The evaluation of the application would be based on the following
• The Sponsoring Authority
• Does the Sponsoring Authority have available funds (on budget
and from donor sources) for use in project procurement and has the
sponsoring authority included project procurement in its budget?
• Has the sponsoring authority procured a PPP or similar project
(successfully or unsuccessfully) recently?
• Are the strategic goals of the Sponsoring Authority achieved by
the project (in other words, does the project result in creation of a
‘public asset’)?
• Has the Sponsoring Authority made a counterpart funding
commitment to the project procurement and transaction advisor
costs?
42. Evaluation Procedures and
Timeframe
ii) The sector
• Is the proposed PPP in an eligible sector?
• Is the proposal fully in compliance with the definition of PPP?
• Is the project reflected in the Sponsoring Authorities planning
framework?
• What is the history of PPP procurement of similar projects in the
sector?
iii) The project
• Has the project been properly defined and ring fenced?
• Has the transaction advisor been selected in accordance with the
provisions of these Guidelines?
• Are the milestones for transaction advisor payment such that the
project is at risk of not reaching technical closure?
• Are the transaction advisor costs proportional to project value? (Sector
specific)
44. Evaluation Procedures and
Timeframe
What is the ability for the project to:
• Generate private sector capital investment?
• Generate system improvements in non capital investment
projects?
• What are the service delivery outcomes and improvements on
the current outcomes expected from the project?
• What capacity and appetite is there in the private sector for it to
participate in the project?
• What is the project procurement history and does this reflect
adequate commitment to the project on the part of the sponsoring
authority?
45. Evaluation Procedures and
Timeframe
Funding
• Has a cash flow been submitted and verified
by the PPP cell of the sponsoring authority?
• Has the project profile been established and
is likely to be accepted by all the
stakeholders?
46. Evaluation Procedures and
Timeframe
• In case the project has been graded by one of
the recognized Credit Rating Agencies, the
evaluation would be taken as one of the
tools of assessment.
• In all cases, the decision to fund or not fund
the project will be at the discretion of the
Empowered Institution.
47. Evaluation Procedures and
Timeframe
Monitoring
• The Sponsoring Authority shall be
responsible for regular monitoring of the
project development and compliance with
the milestones as approved by the
Empowered Institution.
48. Recovery of Project Development
Funding with Returns
• Project development funding, ordinarily, will be
an interest free financial assistance to meet the
project development expenses. This is expected
to be recovered from the successful private
sector partner on award of the project. The
Sponsoring Authority will reimburse the IIPDF,
the project development expenses along with a
fee up to 40% of the funding as provided below.
The Sponsoring Authority must provide a plan
for the same.
49. Recovery of Project Development
Funding with Returns
• Revenue
Generating
Commercial
Projects
(Concession/BOOT or its variants/Lease contracts):
In case of revenue generating projects proposed to be
implemented through private sector investments, the
MFC must include a plan for recovery of the IIPDF
amount with a success fee of 40%.
• (ii) Efficiency Enhancement / Cost Savings Projects
(Management or Service contracts or Engineering,
Procurement and Construction (EPC) contracts with
limited period performance based O&M contracts):
Where there is no or low private sector investment,
the plan for recovery of project development
expenses will be with a success fee of 25% .
50. Recovery of Project Development
Funding with Returns
• Non-revenue generating projects with high
economic returns (e.g. Sewerage System): In
case of project undertaken in PPP formats
based on Economic Returns considerations,
project development funding may be
considered merely as an interest free
financial assistance to the project, to be
repaid without any success fee, by the
government.
52. Risk Management
In order to fulfil its mandate of the IIPDF, the
selection of projects is the most important
risk mitigation measure. The IIPDF is not
intended to recover all disbursed funds; in
fact, a non-recovery rate of 25 per cent of
the funds disbursed is assumed. This allows
the IIPDF to also fund projects that are
innovative either in terms of sector or
service provided at national, state or local
level.
54. References
Scheme and Guidelines for India
Infrastructure Project Development Fund
• Department of Economic Affairs, Ministry of
Finance Government of India
Urbanization Urban Development & Metropolitan
Cities in India
• Dr V. Nath Concept Publications