...Project Financing Asset-Based Financial Engineering Second Edition JOHN D. FINNERTY, Ph.D. John Wiley & Sons, Inc. Project Financing Founded in 1807, John Wiley & Sons is the oldest independent publishing company in the United States. With offices in North America, Europe, Australia, and Asia, Wiley is globally committed to developing and marketing print and electronic products and services for our customers’ professional and personal knowledge and understanding. The Wiley Finance series contains books written specifically for finance and investment professionals as well as sophisticated individual investors and their financial advisors. Book topics range from portfolio management to e-commerce, risk management, financial engineering, valuation, and financial instrument analysis, as well as much more. For a list of available titles, visit our Web site at www.WileyFinance.com. Project Financing Asset-Based Financial Engineering Second Edition JOHN D. FINNERTY, Ph.D. John Wiley & Sons, Inc. Copyright C 2007 by John D. Finnerty. All rights reserved Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. Wiley Bicentennial Logo: Richard J. Pacifico No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States...
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...Financial Definition of Project Financing Meaning of Project Financing ✓ This is a form of asset-based financing in which a firm finances a discrete set of assets on a stand-alone basis. ✓ A mode of financing the project where the repayment is based on the cash flows after the completion of the project and the fixed assets involved in the project are kept as collateral. ✓ It is a way to raise nonrecourse financing for a specific project characterized by the following: (1) The project is a separate legal entity and relies heavily on debt financing (2) The debt is contractually linked to the cash flow generated by the project. Five Basic Steps to Finance Step 1: Identify the Project If a project is being started from scratch with no leads, while there are resources it can query to help identify potential projects. Step 2: Determine the Feasibility of the Project When a promising project has been identified, the next and most important step is to determine the feasibility of launching the venture. This step involves drafting a carefully detailed plan of action which reflects the venture partners' understanding of: • the markets in which the products will be sold, including industry trends, tariffs and other barriers to entry; • domestic and international competition in the chosen industry; • the costs of human resources, technology, and other components of the venture; • the expected revenue that the project can generate, as well...
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...Project Financing Melissa Austin PJM 535 – Project Metrics, Monitoring, and Control Colorado State University – Global Campus Dr. Scott Burch August 23, 2015 Project Financing Project financing is a loan by a lender in which the debt gets paid back from the cash flow the project generates (Investopedia, 2015). With project financing of course risks are involved. The risks can fall into five different sections: financial, development, political, organizational, and execution (Kerzner, 2013). Let’s focus on two of the risk categories to explore in more detail, financial and development. Risks associated with financial risk are: secured versus unsecured debt, project versus corporate financing, and best timing for raising capital (Kerzner, 2013). A secured loan is protected by collateral and is usually the best way to obtain a large amount of money so the lender knows they will be repaid (GreenPath, 2015). A secured loan offers longer repayment terms, higher borrowing limits, and lower rates. Examples of secured loans include: auto loan, mortgage, or home equity line of credit. Unsecured loans are essentially the opposite of a secured loan in which the lender is taking a risk of lending with no collateral to recover (GreenPath, 2015). Examples of unsecured loans are credit cards, education, or personal loans. Project financing has a higher risk than corporate financing. Project financing relies on revenues that have not be made yet. Corporate financing can be extended...
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...QUESTION: Short Notes on Infrastructure Projects. Introduction “Imagine one lived in a place where there were no pipes to carry water to your faucet and your toilet, no pipes to carry away your waste, no wires to power your appliances and computers and to light your home, no wires to carry telephone conversations and your internet messages, no roads on which to drive, no railroad tracks to guise trains, and no bridges to cross rivers, Would that be a place where you would want to live?”. These according to Matthy Levy and Richard Panchyk (2000 Engineering the City; How Infrastructure Works), is the story of infrastructure which teaches us about the history of human development from the time we lived in caves and first set establishment villages. It also shows us the contribution of science, mathematics, and industry to our built environment. Invisible infrastructure contributes to the quality of people’s life. 1.0 The Concept and definition of Infrastructure Projects Infrastructure refers to economic services from utilities such as electricity, gas, telecommunications and water. Transport works such as roads, bridges, urban transit systems, seaports and airports which are central in promoting economic activities in the country. Good infrastructure helps by providing economic services efficiently, promoting economic competitiveness and supports high productivity. Poor infrastructure on the other hand impedes economic growth and can be seriously detrimental to the efficient...
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...| ECI PROJECT PLAN2014-15 | bcorp | [Date] | [Course title] | | | ECI PROJECT PLAN2014-15 | bcorp | [Date] | [Course title] | | PROJECT REPORT ON: STRATEGIC PLANNING, FINANCING AND IMPLEMENTING A PRELIMINARY IMPLEMANTATION IN “EXOTIC CAR INC (ECI) FOR 03 YEARS”. With this project report we are explaining about the project strategic plan, analysis, appraisal, finance and preliminary implementation for initial 03 years. Also, we will study all phases of project like - project planning, project analysis, project initiation, project implementation, and project result. Every stage is vital to make a project success. The major areas of the project reports are defined below: Project planning and analysis: 1. ANALYSIS We are about to create a new Project activity plan for ECI. We are about make a plan which will be feasible to implement for attaining more customer and for attaining quality of service 24/7. In this Analysis we will do in-depth study of all the departments of ECI from production to marketing to make a solid analysis of ECI business ways. 2. Detailed planning I. Technical feasibility The Technical Feasibility Study reports shows the details of how ECI will deliver a product or service i.e., materials, labor, transportation, technology needed, etc. A increase in business productivity in ECI would reach through its Technical belongings and thus the Technical products like Materials for car services, Car washer machines...
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...Project Finance and Private Public Partnership in financing logistics infrastructure. Introduction Finance scholars acknowledge a clear-cut distinction between corporate finance and project finance. The two techniques are considered as basically different approaches to the problem of raising debt to fund capital investments. In corporate finance lenders assess the creditworthy of a whole company, evaluating the going concern, the full range of projects in place, and the cautional value of all the assets. The amount to lend and the risk-spread are decided on a global evaluation of the firm’s economic and financial situation. In project finance, the goal is the implementation of a specific project. Lenders typically finance a special purpose vehicle for the development and construction of a particular project, looking to cashflows and project’s assets as sources of payment for their loans, rather than to the credit ratings of the project sponsors. Historically project finance was widely used in financing transport and logistics infrastructure, like railways or channels. More recently, in the past decades, there has been a new wave of global interest: large amounts of debt have been raised to finance projects like motorways, distriparks, maritime ports, intermodal logistic platforms. These infrastructures are built, owned and operated by special purpose vehicles (SPV), organized for that single project and financed mainly by debt. In many cases, SPVs are not wholly owned by private...
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...Meeting the Challenges of Stakeholder Engagement and Communication: Lessons From Teacher Incentive Fund Grantees The Harvesting Project Julia E. Koppich J. Koppich & Associates Meeting the Challenges of Stakeholder Engagement and Communication: Lessons From Teacher Incentive Fund Grantees As of August 2010, a total of 33 states, school districts, charter school coalitions, and other education organizations¹ had received Teacher Incentive Funds (TIF) to redesign compensation programs for teachers and principals. The U.S. Department of Education named a new cohort of TIF grantees on September 23, 2010. TIF grantees have faced a number of challenges as they have worked to design and implement new educator pay programs. Among the most demanding challenges has been developing a targeted set of metrics around available and manageable data. Grantees use these metrics to measure teacher or principal effectiveness and assign pay. Recently, grantees have made it a priority to sustain operation programs once their federal funding expires. TIF grantees have also found, often belatedly and unexpectedly, that effective stakeholder engagement and communication are challenging and essential to the success of their pay programs. Stakeholder engagement helps to create buy-in and initial acceptance of the TIF plan. It allows different voices and perspectives to be heard and recognized as new approaches to compensation develop. Communication provides the synergy to broaden buy-in and...
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...Introduction This dissertation is concerned with research specifically looking at the relevance of istisna’ for financing infrastructure projects, the potential barriers and strategies identification to implement in Malaysia. The purpose of this chapter is to provide an overview of the research conducted. It will discuss on the general ideas of the study. The points to be discussed in this chapter are: • Background to the research • Problem statement • Research aim and objectives • Scope of the research • Research questions • Methodology outline • Significance of the research • Structure of the research • Summary 1.2 Background to the research Infrastructure has become important in supporting a nation’s...
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...Feasibility Study Outline for New Manufacturing Project There is a saying, hindsight is 20-20. Smart business people, however, do not rely on hindsight but on foresight. A feasibility study is more of a scientific foresight, a way of reducing guessing as to what things should be considered. The following is an outline of a feasibility study based on new manufacturing business. There are hundreds of variations of a feasibility study but this is good because it is applicable to big and small businesses, either domestic and international. Feasibility Study Outline for New Manufacturing Project A. Project Summary 1. Brief description of the project 2. Summary of the findings and conclusions a. Project timetables and status b. Management aspects c. Marketing aspects d. Technical aspects e. Taxation aspects f. Financing aspects g. Financial aspects h. Social aspects B. Project Timetable and Status 1. General project planning 2. Incorporation 3. Preparation of engineering specifications 4. Building construction 5. Selection...
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...creative projects. It’s a platform referred to as “crowdfunding,” in that it helps individuals and organizations raise money from the general public. Kickstarter was started in April 2009 by Perry Chen, Charles Adler, and Yancy Strickler. Since then, it’s collected nearly $40 million in pledges to help fund projects as diverse as creating an iPhone 4 tripod and mount to helping an author publish a guide to hidden art galleries and museums in Tokyo. Kickstarter receives between 100 and 200 new project requests per day. Projects are accepted if they follow Kickstarter’s guidelines. The primary requirement is that a project must be creativity-oriented. Kickstarter does not fund charity projects or causes. How It Works Once accepted, you use tools provided by Kickstarter to set up your fund-raising campaign. The campaign, which is displayed at Kickstarter.com, includes a description of your project, a video pitch (not required but recommended), the minimum amount of funds you need, and a deadline. If the minimum isn’t reached by the deadline, pledgers receive their money back. Pledges are tiered ($25, $50, $75, etc.), with each tier earning a certain incentive. The incentives are “thank- you” gifts or tokens that the person initiating the campaign gives to the people who make the pledges. Kickstarter has taken several steps to govern the integrity of its campaigns. Money pledged by donors is collected using Amazon Payments. Kickstarter claims no ownership over the projects and the...
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...SECONDARY SCHOOL PROJECT PROJECT COMPLETION REPORT COUNTRY DEPARTMENT NORTH REGION FEBRUARY 2001 TABLE OF CONTENTS Page TABLE OF CONTENTS, ABBREVIATIONS AND ACRONYMS, EXECUTIVE SUMMARY, CONCLUSIONS AND RECOMMENDATIONS (i-vi) 1. 2. INTRODUCTION PROJECT OBJECTIVE AND FORMULATION 2.1 2.2 2.3 Sector Goal Project Objectives Project Description 1 1 1 1 1 3 3 3 5 5 6 7 7 8 9 9 9 9 9 10 10 10 10 11 3. PROJECT EXECUTION 3.1 3.2 3.3 3.4 3.5 Modifications Implementation Schedule Reporting Procurement Financial Sources and Disbursement 4. PROJECT PERFORMANCE 4.1 4.2 4.3 4.4 Overall Assessment Institutional Performance Operational performance Performance of Consultants and Suppliers 5. SOCIAL AND ENVIRRONMENTAL IMPACT OF THE PROJECT 5.1 5.2 5.3 Social Impact The Impact on Women Environmental Impact 6. 7. PROJECT SUSTAINABILITY PERFORMANCE OF THE BANK AND THE BORROWER 7.1 7.2 Performance of the Bank Performance of the Borrower 8 CONCLUSIONS, LESSONS LEARNT AND RECOMMENDATIONS 14 8.1 8.2 8.3 Conclusions Lessons Learnt Recommendations 14 14 15 ____________________________________________________________________________ MR. T.P. SEYA (Chief Education Expert) and MR. SURESH MUNBODT, UNESCO Consultant, following their mission to Egypt in April 2000 prepared this project completion report. Enquiries should be addressed to Mr. Bisi OGUNJOBI, Director, OCDN (Ext. 4040) and Ms. Z.B. EL BAKRI, Manager, OCDN.3. LIST OF ANNEXES I II III IV Location of the Project Outputs Annual...
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...PROJECT ADVISORY & STRUCTURED FINANCE Bareilly Highways Project Limited SIP PROJECT REPORT SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE PGDM PROGRAM By:- Gaurav Kataria (2010074) SUPERVISORS: 1. Mr. Saurabh Kumar 2. Prof. D.N. Panigrahi INSTITUTE OF MANAGEMENT TECHNOLOGY, NAGPUR 2010-2012 ACKNOWLEDGEMENT I would like to express my gratitude towards “SBI Capital Markets Limited” for giving me the opportunity to work in the esteemed organisation. The Summer Internship Program (SIP) undertaken by me at SBI Capital Markets Limited, New Delhi was an extremely rewarding experience for me in terms of learning and industry exposure. I am grateful to the Management who took out valuable time to answer my queries and gave me full information about Investment Banking and SBI Capital Markets. Especially, I want to express my deep sense of gratitude towards my project supervisors- Mr. Saurabh Kumar and Prof D N Panigrahi for their invaluable guidance and timely suggestions which helped me overcome obstacles from time to time. I would also like to thank my family for their ever willingness to help and to guide to complete my project successfully. Lastly, I want to express my regards to the Almighty for enabling me to undergo this corporate training with convenience. TABLE OF CONTENTS 1.Executive Summary 2.Introduction 3. Objective of the study 4.Project description 4.1 SCOPE OF THE PROJECT 4.2 SITE & PROJECT LOCATION 4.3 PRESENT STATUS OF THE PROJECT...
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...as well as giving its people the chance for economic growth are the guiding principles behind SDPCI's existence Location S.D Platon Construction, Inc. is a Construction Companies business located in Ilang-ilang, Quezon City Metro Manila. For more information you can contact them at: 0929626479 Marketing Strategy Fosse plans to market itself through a variety of methods. First, the company will use a referral system with local businesses. We will also air radio spots and publish ads in a variety of commercial construction trade magazines. In addition we will leverage our pre-existing contacts with the local real estate companies. Finally, as a member of the local construction association we will be updated our new projects let our for bid. Strategic Plan for a Construction Company Business A strategic plan is a business plan with a specific goal. It documents a vision for what you want your company to achieve and provides a road map for how to get there. The goals can be organizational, such as developing better customer service than your competition; transitioning to a new...
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...Few memories as a failure on a major project from half a decade ago still vividly remains in memories. As a Research Assistant to Tim, it was my first paid job. Tim, an Engineer, worked in silos and had driver social style to his heart beat. He only communicated the expectations without delving in the details that he had in his mind. Even though the Office space was a closed knit space for 16 students, Tim seldom hung out with people to build personal relationships. He only interacted with others when there was a need. His lack of explanation on why the project was needed had left me wondering regarding purpose and design aspects of the new programming project. I struggled on how to effectively design the project and often sought help from other people, who recommended me that the project needed investment in new programming platform as old platform was incapable of achieving the project objectives. After making almost no progress on the project and wasting time in attempts to make old platform workable, I received a vehement email from Tim, stating that XYZ Inc. was deciding to scale back on funding, as no progress reports were submitted. I was shocked to learn that I was even expected to submit progress reports at the end of quarter on the undertaken project in which I had neither any clue nor communication. As an amiable person, I was too quick to reach an agreement with Tim on project deliverables. I had thought that I would be receiving friendly advice and guidance from...
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...and answer document, uploaded to D2L dropbox. You will have to find an IT professional to interview on your own. Description of this assignment 1. Each student needs to find a candidate for a Post-implementation Review (PIR) report describing an information systems development project. 2. Where can you find an information technology professional to interview? You will have to find an IT professional to interview on your own. 3. If you work for a business or government organization, you should consider interviewing the IT/MIS director for your organization. If you work P/T or F/T in any reasonably sized organization, it is likely that there are some IT workers around (like help desk staff, programmers, analysts, network technicians or even IT managers). It can even be a friend, relative or acquaintance you know who works in such a job. 4. The following is a list of themes that you could address in the interview: Please do not write this paper in question and answer format. Use the questions below to help guide the interview. ▪ What type of job does he/she do? For whom? ▪ What projects is he/she currently working on for the organization? ▪ What projects has he/she recently completed? ▪ What IT applications has the firm recently implemented? ▪ Were the most recently applications developed in-house, were they outsourced development or were they application software packages that were customized and purchased? ...
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