Lessambo International Project Finance

The Public-Private Partnership
1. Auflage 2022
ISBN: 978-3-030-96390-3
Verlag: Springer International Publishing
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 214 Seiten, eBook

Reihe: Progress in Mathematics

Economic growth and development critically depends on the quality of infrastructure. Each aspect of the economy and its infrastructure are linked systemically. Public-Private Partnerships (PPPs) are increasingly being promoted as the solution to the shortfall in financing needed to achieve the Sustainable Development Goals (SDGs). Public-private partnerships enable the public entity to utilize the expertise and efficiencies of the private sector to deliver services and facilities that traditionally have been delivered by the public sector, either through public sector employees or by traditional procurement methods. To be beneficial to all stakeholders, a PPP project requires careful planning, implementation, and strong governance.  This book breaks down the steps involved and the traps to circumvent.

Despite its globally growing importance, project finance has been somewhat underrepresented in research. This book analyzes project finance from an interdisciplinary perspective—finance, management, and international business—and includes international laws of arbitrage and perspectives of international financial institutions as never endeavored by any previous research projects. The book also includes case studies assessing the relevance of private-public partnerships by comparing the country expectations and the real outcomes. The gap between expectations and results does not necessarily mean that significant progress has not been made. To the contrary, the book suggests that some of the original targets set may have been unrealistic, and that the requisite financial resources—or the financial sector policies that could have generated those resources—may have been lacking.

Zielgruppe

Research

Autoren/Hrsg.

Lessambo, Felix I.

Inhaltsverzeichnis

Chapter 1: Introduction to Project Finance1.1 General1.2 Characteristics of project Financing1.3 Public-Private Partnership Framework 1.3.1 PPP Policy· PPP Rationale· PPP Scope· PPP Implementation Principles·  PPP Governance ArrangementsChapter 2: Project Financing and Direct Conventional Financing2.1 General2.2 Corporate Finance2.3 Traditional Procurement2.4 Project Finance2.5 Advantages and disadvantages of project finance 2.5.1 Advantages 2.5.2 Disadvantages2.6 Evolution of project finance2.6.1 The Extractive and oil Industry 2.6.2 The Natural Resource Industry2.6.3 The Power Industry & Beyond Chapter 3: Sources of project funds3.1 General3.2 Sources of Funds · Syndicated Commercial loans· Bridge finance Bonds and other debt instruments Stapled Financing Equity finance Mezzanine Loan Hybrid Instruments Pension funds Government grants 3.3 Project Financing Participants Project sponsors or owners Project company Contractor Operator Supplier Customer Multilateral agencies Export credit agency Legal advisers The trustee Insurance Companies 3.3 Public-Private Partnerships3.4 Structuring Project finance Chapter 4: Bankability4.1 General4.2 Bankability Assessment 4.2.1 Certainty of Revenue Stream 4.2.2 Risk Factors 4.2.2.1 Political Environment 4.2.2.2 Economic Environment 4.2.2.3 Legal System 4.2.2.4 Regulatory Framework 4.2.2.5 Environmental Risk 4.2.2.6 Project Specificity 4.2.2.7 Project Financial Structure 4.2.2.8 Third Party Risk Allocation 4.2.2.9 Contract Agreement4.3 Bankability TradeoffChapter 5: Public Procurement: Laws and Regulations5.1 General5.2 Public Procurement Legal Framework The Constitution National Procurement Laws Procurement Regulations 5.3 Principles of Public Procurement 5.3.1 Transparency5.3.2 Integrity5.3.3 Efficiency5.3.4 Fairness5.3.5 Openness5.3.6 Competition5.3.7 Accountability5.4 Public Procurement Cycle5.4.1 Competitive Tendering5.4.2 Pre-Qualification of Bidders5.4.3 Processing and evaluating bids5.4.4 Making award recommendations5.4.5 Negotiating contracts5.4.6 Contract award letter and signing the contract.5.5 Public Procurement laws in the US, EU, and China 5.5.1 Public Procurement laws in the United States 5.5.2 Public Procurement laws in the European Union 5.5.3 Public Procurement laws in China Chapter 6: Assessment of project’s viability and analytical tools6.1 General6.2 The Procurement Process6.3 The Six Assessment Areas 6.3.1 Project Identification and PPP Screening 6.3.2 Appraisal and Preparation Phase 6.3.3 Structuring and Drafting Phase 6.3.4 Tender Phase6.3.5 Contract Operational Management 6.3.6 Contract Finalization Management 6.4 The Analytical Tools:  Infrastructure Prioritization Framework6.4.1 Infrastructure Prioritization Framework · Social Cost Benefit Analysis· Multi-Criteria Decision Analysis (MCDA) Chapter 7: The Identification and Management of Risks7.1 General7.2 Identification of Projects: Project cycle Identification Preparation Appraisal Negotiation/Approval Implementation/Support Completion/Evaluation 7.3 Risk Assessment 7.3.1 Risk Identification Country risk Political risk Industry risk Project risk Customer risk Supplier risk Sponsor risk Contractor risk Operating risk Product risk Environmental risk Competitor risk Funding risk Currency risk Interest rate risk 7.4 Risk Allocations7.4.1 The Project sponsor7.4.2 The Lenders 7.4.3 The Contractor 7.4.4 The Suppliers 7.4.5 The Customers7.5.6 The Project Company7.5.7 The Governments  Chapter 8: The Project Finance contractual arrangement8.1 General8.2 PPP Types8.2.1 Build – Operate – Transfer (BOT) 8.2.2 Build – Own – Operate – Transfer (BOOT) 8.2.3 Buy-Build Operate (BBO)8.2.4 Build – Own – Operate (BOO)8.2.5 Build – Own – Operate – Transfer (BOOT) 8.2.6 Design – Build8.2.7 Design – Build – Finance8.2.8 Design – Construct – Maintain – Finance (DCMF) 8.2.9 O & M (Operation & Maintenance)8.2.10 Lease-Purchase8.2.11 Turnkey contract8.3 Bidding and Award Procedure Purposes Procedures Evaluation 8.4 PPP Contract clauses 8.4.1 PPP Contracts under various Legal Systems Common Law System Civil Law System Islamic law 8.4.2 PPP Key Contractual terms 8.4.2.1 Force Majeure The Concept of Force majeure Force Majeure and hardship clause Consequences of Force Majeure 8.4.2.2 Material Adverse Government Action 8.4.2.3 Change of Law Concept of Change in Law Relief and Compensation 8.4.2.4 Termination of Contract The concept of contractual termination Early Termination by the Public Authority 8.4.2.5 Governing Law and Dispute Resolution The PPP Governing Law The PPP Dispute Resolution  Chapter 9: Alternative Dispute Resolution9.1 General9.2 Advantages and disadvantages of ADR9.2.1 Benefits of ADR9.2.2 Disadvantages of ADR9.3 Forms and Types of ADR9.3.1 Adjudicative ADR· Arbitration· Neutral Fact-Finding9.3.2 Evaluative ADR· Peer Evaluation · Specialist or Expert Evaluation9.3.3 Facilitative ADR· Mediation· Conciliation · Consensus Building9.4 International Platforms 9.4.1 The ICSID9.4.2 The International Chamber of Commerce 9.4.3 The Arbitration Institute of the Stockholm Chamber of Commerce (SCC)9.4.4 The Hong Kong International Arbitration Centre (HKIAC)9.4.5 The Singapore International Arbitration Centre9.4.6 The Cairo Regional Centre for International Commercial ArbitrationChapter 10: Project Finance Governance10.1 General10.2 OECD Principles for public governance of PPP10.3 Quality Infrastructure investment principles10.4 PPP Governance Paradigm 10.4.1 Traditional Public Administration 10.4.2 New Public Management 10.4.3 Collaborative Governance 10.4.4 Private Governance ApproachChapter11: International Project Finance and Corruption11.1 General11.2 Forms of Corruption· Bribery· Lubrication· Subornation· Lobbying· Extortion· Cronyism· Patronage· Influence peddling· Graft11.3 Fighting corruption within World Bank Group-financed projects 11.3.1 Effects of Corruption on Projects Finance 11.3.2 Corruption in the extractive industries 11.3.3 Example: Extractive Industries Transparency Initiative Chapter 12: Infrastructure Projects Finance 12.1 General12.2 Substantial Project Financing12.2.1 Water and Sanitation Project12.2.1.1 Human Right to Water and Sanitation12.2.1.2 Water and Sanitation PPP· Concessions· BOT Project· DBO Project12.2.2 Transportation and Telecommunications Projects 12.2.2.1 Transportation· Airports· Ports · Roads· Railways· Urban Passenger Transport 12.2.2.2 Telecommunications12.2.3 Climate and Energy 12.2.3.1 Climate Change 12.2.3.2 Energy Power Chapter 13: Public Fiscal Risk Assessment Model13.1 General13.2Understanding the Fiscal Metrics 13.3 PPP Accounting and Reporting13.3.1 Budgeting13.3.2 Accounting13.3.3 Reporting PPPs in Public Deficit and Debt13.4 Assessment of Fiscal Risk (i) Identification and Assessment of Risks (ii) Mitigating factors13.5. Performing the Sensitivity analysis GDP shock. Exchange rate shock · Inflation shock. Chapter 14: Cases study14.1 General14.2 Successful stories14.2.1 Breaking New Ground: Lesotho Hospital Public-Private Partnership—A Model for Integrated Health Services Delivery14.2.2 Ukraine: Providing Safe Harbors for Ukraine’s Economic Growth14.2.3 Senegal- A Road leads to Economic Opportunities 14.2.4 China (1997): The Greenfield project to install modern medium-density fiberboard plants 14.3 Unsuccessful PPP14.3.1 Liberia Education Advancement Programme (LEAP)14.3.2 The New Paris Courthouse 14.3.3 International Airport of Chinchero – Cuzco

Über Autor(innen)

Felix I. Lessambo is Adjunct Associate Professor at Fordham University, USA, where he teaches Corporate Tax and Audit & Assurance Services. He was an Associate Professor at Central Connecticut State University School of Business where he taught Financial Statements Analysis, Global Financial Reporting, and Law & Finance. He has practiced international tax, transfer pricing, and alternative investment management where he structured and advised on hedge funds and private equity cross-border transactions. He is the author of several books in finance including The International Banking System, The International Corporate Governance System, International Financial Institutions and Their Challenges, International Aspects of US Taxation System, Audit-Assurance Services & Forensics, Financial Statements: Analysis & Reporting, The US Banking System, Mergers in the Global Markets, International Finance, and The US Mergers & Acquisitions: Legal & Financial Aspects.