Construction Financing Research Articles

A Global Review of Sustainable Construction Project Financing: Policies, Practices, and Research Efforts

Despite the increasing investment in sustainable development over the past decade, a systematic review of sustainable construction project financing is lacking. The objectives of this paper are to conduct a systematic review to examine the policies, practices, and research efforts in the area of sustainable construction project financing, and to explore the potential opportunities for the future research. To achieve these goals, this paper first reviewed the sustainable construction project financing practices implemented by four representative developed economies including the United Kingdom, the United States, Singapore, and Australia. Then, this paper reviewed the efforts and initiatives launched by three international organizations including the United Nations, the Organization for Economic Co-operation and Development, and International Finance Corporation. After that, this paper reviewed the research efforts of sustainable construction project financing published in peer-review journals and books. This paper identified four major research themes within this area, which are the review of financial stakeholders and market of sustainable construction, benefits and barriers to sustainable construction project financing, financial vehicles for sustainable construction projects, innovative models and mechanisms for sustainable construction project financing. Additionally, this paper revealed five directions for the future research of sustainable construction project financing, which are the identification of financial issues in sustainable construction projects, the investigation of financial vehicles for sustainable construction projects in terms of their strengths, limitations, and performances, the examination of critical drivers for implementing sustainable construction project financing, the development of a knowledge-based decision support system for implementing sustainable construction financing, and the development of best practices for implementing sustainable construction project financing. This paper contributes to the body of knowledge by reviewing existing policies, practices, and research efforts in the area of sustainable construction project financing. Meanwhile, the findings from this paper benefit the industry as well, because they are able to provide the practitioners with a holistic view of sustainable construction project financing, thereby enhancing their knowledge and skills in this regard.

A regional assessment of wood resource sustainability and potential economic impact of the wood pellet market in the U.S. South

The ability to secure financing and local government support for construction of wood pellet facilities can be enhanced by articulating the economic benefits of these production facilities. This analysis explains how local economies can benefit from wood pellet manufacturing by expressing the economic multiplier effect of wood pellet plant operations in terms of employment, wages and salaries, and value-added in each of the 13 states in the U.S. South. Input-output analysis is conducted using the IMPLAN software and 2012 data. The analysis examines how direct effects (e.g., plant operation expenditures and employment) generate additional indirect effects (e.g., purchases by supporting industries and their employees) and induced effects (e.g., household spending by direct and indirect employees) that result in a total effect or cumulative benefit to the local economy. Moreover, this study also assesses wood fiber availability and development potential of wood pellet mills in each U.S. South state based on the annual pulpwood growth and removal trends. This information can be used to communicate the wider benefit to an economy that results from the establishment of a wood pellet facility.

Evaluation on Financing Factors of Infrastructure Construction of Transportation and Communications Industry in Kazakhstan

This paper uses grey relational analysis method to study the scale of foreign investment, fiscal revenue, stock trading volume and Kazakhstan domestic bank credit risk assessment of transportation and communication industry with the grey correlation degree of the financing growth rate of the industry. The study found that Kazakhstan transportation and communications infrastructure construction financing in the scale of foreign investment and stock trading volume is the major factor of four index. Therefore, on the one hand China could continue to maintain direct investment in Kazakhstan; on the other hand, China enterprises should further broaden to Kazakhstan investment, give full play to the role of capital market, reduce their investment risk and accelerate the west “going out” pace.

Study on the Feedback Mechanism of Urbanization Investment and Financing Effect in Guizhou Province

The mechanism feedback of urbanization construction investment and financing effect can help improve the decision-making level of urbanization investment and financing, and improve the efficiency of investment and financing. Taking Guizhou Province as an example, using the principles of feedback control theory, this paper designs the feedback mechanism, the feedback system and the flow chart of urbanization investment and financing effect of Guizhou Province, and illustrates how to use the feedback mechanism. Furthermore, this paper proposes countermeasures to improve the feedback mechanism of urbanization investment and financing effect of Guizhou Province.

ANALISIS PERTUMBUHAN EKONOMI DAN KEUNGGULAN SEKTOR PERTANIAN INDONESIA

The study aims: (1) to measure the growth rate of economic sector based on Gross Domestic Product; (2) to determine contribution of economic sector to GDP; (3) to measure contribution trend of economic sector of GDP and to determine basic sectors inprovinces of Indonesia. The data used is secondary datafrom Badan Pusat Statistik, i.e. Gross Regional Domestic Product and Gross Domestic Product according with 1993 constant price. Data included overall provinces in Indonesia among 19842003. Table analysis, Location Quotient, shift-share, and Klassen Typology were used to analyze. The results are: (1) growth rate o/GDP is positively fluctuated, except at 1998 due to economic crisis; (2) contribution ofagricultural sector; mining and quarrying sector; and services sector weredecreased Contribution of manufacturing industries sector; electricity, gasand water supply sector; trade, restaurant and hotel sector; and transportation and communication sector were increased. Contribution of construction sector and finance and rent of building and business sector werefluctuated; (3) overall sector follow quadratic pattern, exceptfinance, building rent, and business sector that follow linear pattern; (4) agricultural sector was the basic sector in ·26 provinces, except in East Kalimantan, Banten, WestJava and Jakarta.

Analysis on the Significance of Constructing Asian Infrastructure Investment Bank

Infrastructure construction is of great significance to a country’s sustainable economic growth. As the economic globalization and regional integration, Asia has become the world’s most active and most promising region, deepening of cooperation between countries, but pushing forward cooperation needs to rely on sound infrastructure system. However, most of the developing countries in Asia face difficulties, such as poor infrastructure, insufficient funds, which seriously restrict the economic development of Asian countries and weaken the ability to response to the financial crisis. Setting up an investment bank that provides special service on financing for infrastructure construction in Asian countries is particularly important, for China and Asia and even for the whole world; it has the far-reaching significance. The preparation of the Asian infrastructure investment bank is unprecedented, so we need to learn operation pattern and the structure of the organization of experience from the world bank and the Asian development bank and other international financial organizations, combined with the actual situation of the region. As a result, we should analyze the significance and carry on the reasonable and feasible ideas for the Asian infrastructure investment bank.

The system of effective management of transport and logistics company

Railway transport is one of the system-forming sectors of the economy, requiring huge financial investments. At the same time, the sphere of transport can become an instrument for overcoming the economic crisis and creating conditions for the growth of the national economy, as investing in the transport industry contributes to the development of related industries and the provision of jobs. The development of transport infrastructure to meet the needs of the economy and the implementation of transit potential is a strategic direction outlined in the Strategic Plan of the Ministry of Investment and Development of the Republic of Kazakhstan for 2014–2018. The task of Kazakhstan is to ensure an increase in the transit freight traffic between the People's Republic of China and the European Union, which goes on a land route through the territory of the republic. So, according to the results of 2014, the volume of transit traffic amounted to 17.5 million tons, revenues from transit transportation amounted to 180 billion tenge. JSC Astyk Trans is currently one of the largest operators in the market of railway transportation of grain cargo in Kazakhstan, but slightly inferior to JSC NC in domestic transportation of 42042 wagons to 45049, while for export shipments to the share of JSC AstykTrans there are 34787 carloads, which is 50.3% of transportation of JSC NC KTZ . In order to increase the efficiency of transport and logistics services, reduce the distance and time of delivery between the busiest sections of the railway, construction projects for transport and logistics centers and the formation of an internal terminal network are planned in the industry. By 2020, the railway industry plans to build 1400 km of new railway lines to accelerate the delivery of goods and passengers within the country and beyond Kazakhstan, with at least 50% of the financing of construction to be carried out through private investment. The state for its part can provide tax and other benefits, guarantees, subsidies, subventions, direct reimbursement of investment costs.

新农村社区建设的若干问题探讨及解决途径

新农村社区建设是对于农村就地城镇化和提高农村生活基础条件具有重大的理论和现实意义。基于投融资建设视角下，分析总结出新农村社区建设一直面临的三大主要问题：建设用地问题、安全隐患与资源浪费问题、建设资金筹措问题，并有针对性地提出解决办法，从而为顺利推进新农村社区发展提供参考。 It is of great practical significance that the construction of new rural communities is an important measure of local urbanization in rural areas. Based on the consideration of investment and financing construction, this paper has studied and analyzed the three major problems in the construction of new rural communities currently, including land problems, safety hazards and waste of resources, construction financing problems. Then, to deal with the above-mentioned difficulties, we have put forward some practical solutions so as to provide reference for the smooth progress of the new rural community development.

МЕТОДИ ОЦІНЮВАННЯ РИЗИКІВ ТА ОСОБЛИВОСТІ ЇХ ВИКОРИСТАННЯ ПРИ ФІНАНСУВАННІ ЖИТЛОВОГО БУДІВНИЦТВА

The article examines modern methods of risk assessment, analyzes their advantages and disadvantages, as well as features of use. In particular, it is determined that most of them are based on the use of statistical data and postulates of probability theory. In the case when obtaining the necessary initial data is difficult, the methods of analogues or expert assessments are used, but they are subjective. In a separate group, we can distinguish methods that are based on the use of mathematical modeling, such as the scenarios method , project sensitivity analysis or game theory. Housing construction is characterized by a high level of risk, and the specifics of the industry complicate its unambiguous assessment and, consequently, its management. Therefore, to effectively manage the risks of financing the housing construction, it is necessary to choose an assessment method that can provide the most accurate result. The amount of risk in housing construction financing directly depends on the chosen financing mechanism, and its total value will consist of the sum of individual risks that arise at different stages of the process, and the amount of which can be estimated using different methods. It is necessary to develop a combined assessment model that not only combines different risks, but also considers them as a single object, the individual parts of which are not only related, but can also cross-influence each other. Such a model will combine economic-statistical, expert methods and methods of mathematical modeling.

EXTERNAL BORROWINGS OF THE RUSSIAN EMPIRE AND THE CONSTRUCTION OF RAILWAYS IN SIBERIA

This article analyzes the role of external borrowings of the Russian Empire in the financing of railway construction in the Siberian region. In the context of the elimination of the State Railway Foundation, the Russian government at the initial stage of this process directed at the construction of the railroad Yekaterinburg-Tyumen a part of the proceeds of the VIIth Consolidated Railway Loan, which was placed not only on the Russian stock market, but also inGermanyand theNetherlands. The loan was implemented quite successfully, but the contemporary Russian Minister of Finance N. H. Bunge was criticized for issuing high-yield loan abroad. Since the beginning of the 1890-s, when the financing of the construction of the Trans-Siberian Railway was discussed, foreign investors offered their services, but after S. Y. Witte had joined the Ministry of Finance, priority was given to internal, governmental sources of financing. Thus, the Russian government consolidated the Siberian region as an integral part of the Empire, the entire political elite of the country being interested in its development.

Using Green Building As A Model For Making Health Promotion Standard In The Built Environment.

The built environment-the constructed physical parts of the places where people live and work-is a powerful determinant of both individual and population health. Awareness of the link between place and health is growing within the public health sector and among built environment decision makers working in design, construction, policy, and both public and private finance. However, these decision makers lack the knowledge, tools, and capacity to ensure that health and well-being are routinely considered across all sectors of the built environment. The green building industry has successfully established environmental sustainability as a normative part of built environment practice, policy making, and investment. We explore the value of this industry's experience as a template for promoting health and well-being in the built environment.

Sectoral roles in greenhouse gas emissions and policy implications for energy utilization and carbon emissions trading: a case study of Beijing, China.

In this study, a decomposition and emissions matrix is developed to identify the roles (giver or taker) played by the sectors in the greenhouse gas emissions for the economy of Beijing in China. Our results indicate that services were the most important emitter if we consider the total (direct and indirect) emissions. In addition to Construction, Scientific studies and technical services and Finance sectors of services were the largest takers. They have a large role in boosting greenhouse gas emissions throughout the economy of Beijing. As the basis and supporter of production activities, the electricity production and the transportation sectors were the greatest givers. More emphasis should be placed on using clean energy and carbon capture and storage technologies to reduce emissions within these sectors. Based on the roles played by these sectors in greenhouse gas emissions, some policy implications were proposed for energy utilization and carbon emissions trading.

Menemukan Strategi Pengembangan Kawasan Industri Melalui Analisis Sektor Unggulan Kota Binjai

<pre><em>The industrial sector is a primary sector has the potential to create a progressive growth in a region. The growth in the region rely on the industrial sector was driven by sales of production, employment, and other multiplier effects so </em><em>that </em><em>many </em><em>of </em><em>districts or cities in North Sumatra </em><em>try</em><em> to develop this sector. The industr</em><em>y </em><em>that can be developed </em><em>is</em><em> an appropriate industrial potential and local resource to be optimal growth in the region. In RTRW Kota Binjai years 2011 - 2030, District of North Binjai designated as an industrial area. Industries that are planned to be developed are a high-tech industry. But the problem is whether the type specified in the RTRW industry is the industry that corresponds to the potential of local resources and the District of North Binjai? The purpose of this paper is to find the right industry to be developed by local potential or excellence, especially in the District Binjai Utara Binjai. The analytical tool used is the analysis of LQ, shift share and SWOT discovered the potential and advantages that can be seen Binjai compliance with industry directed by RTRW. The analysis </em><em>results </em><em>show that the industrial sector is not a primary</em><em> </em><em>sector or potential sector in Binjai. The results of LQ and shift share analysis show that the sector with the potential to be developed in Binjai was the construction sector, finance, and services. The similarity with the RTRW policy is only in the service sector. This shows that the service sector can be developed while the computer industry, multimedia, publishing, and printing) is not in accordance with the local potential. However, if the government still wants to develop the industrial sector in North Binjai, there should be diversification strategies, namely building-related industry sectors, such as industry superior building materials and mining industries.</em><em></em></pre>

The Structural Development of Istisna Sukuk from a Shari'ah Perspective

Istisna sukuk structures have been widely accepted for manufacturing and construction financing purposes. This paper looks at the structural development of Istisna sukuk and evaluates both its basic and combination structures. Concerning the former, the paper argues that when Istisna is used for asset purchasing exercises, it should strictly comply with the general Shariah rules regarding Istisna contracts. Prices must therefore be stipulated at the beginning, as must quality and expected delivery times. The paper then highlights some conflicting features arising from the combination of Istisna and Ijarah transactions. These raise Shariah issues when the issuer seeks to lease an asset to the end user at maturity, even though the asset has been transferred to that end user by way of the Istisna contract. It is therefore recommended that the market innovates in order to develop additional structures free from this type of impediment. The study proposes a ‘multiple contract’ structure be used whenever Istisna sukuk is issued in combination with other debt and equity instruments. This will help overcome Shariah issues related to secondary markets in Istisna sukuk issuances.

The role of a technical customer in organization of investment and construction activity at the stage of construction oversight

This document considers the main tasks promoting development of construction as a branch and defines the correlation of efficiency of using funds with the activity of the technical customer as a guarantor of completing the design and construction works with proper quality, within established periods and planned financing of the facility construction. The functions of the technical customer and developer are defined from the point of view of the law as well as reasonability of their simultaneous work in the form of various legal entities in organization of design and survey works. Goals and objectives of the construction oversight are determined in accordance with regulatory documents, on the basis of which the package of functional procedures of the construction control is identified. Organization and management model of the technical customer’s activity at the construction oversight stage is developed in the form of network and linear diagrams aiding in establishing the conditions of the construction oversight function execution with account of assuring the quality of the finished product.

Recent Trends in the Real Estate Market and its Analysis, 2013, Volume 1

Real estate markets, including residential markets, are subject to cycles and are determined by local factors. This dependence is the result of local interactions of a variable demand and rigid short-term supply, which results from the relation between the real sector of the economy (real estate developers, construction companies, home buyers), the financial sector (providing financing for home construction and purchases) and the public sector (regulating the market).

THE CONTRACT FOR THE NORTH AISLE AT THE CHURCH OF ST JAMES, BIDDENHAM

The contract for the building of the north aisle at St James’s Church, Biddenham, Bedfordshire, in 1522 is an exceptional document that escaped the surveys of L F Salzman, John Harvey and most later scholars. Unlike other surviving medieval building contracts, it is the rough draft of an indenture, showing the alterations and changes that were made before it was copied into a neat final version and sealed. By surveying these changes it is possible to delineate, for the first time, the process of negotiation engaged in by its patron, Sir William Butler, and the mason, John Laverok. Unusual too are the details it provides of Butler’s collaboration with the parish in building the well-constructed aisle that would bear his arms. This went further than simply defraying the cost of the work, and is of significance for our wider understanding of the organisation and financing of parish church construction in the sixteenth century. Most importantly, it demonstrates the breadth and complexity of forms that co-operation could take between gentry and parish, and shows that projects with the arms of a single family could nevertheless be funded collaboratively.

Prioritizing the Factors Influencing the Development and Improvement of Financing in the Construction of Housing (Case Study: Iran)

In terms of modern market relations, Construction companies must operate based on conditions of competition in the market for construction services and secondly, they must take serious measures taking into account the needs of stakeholders that the quality index of construction products is increased. The experience of developed countries shows that investment activity in the construction sector includes the accumulation of a variety of investment. In the current economic conditions, the main companies in Iran depend on the investor's financial resources. The purpose of this study was to prioritize the factors affecting the development of the financing of housing construction in Iran. Therefore, as a first step, we attempted to identify the factors from previous research studies and related resources. After identifying the factors, according to the statistics, the questions were distributed among bank managers Housing. In the final stage, the research data have been analysed using the TOPSIS technique. The results showed that the top priority is to strengthen the Bank's financial resources and its importance In order to increase the strength in the housing sector lending.

The Evolving Role for Transactional Attorneys Responding to Client Needs in Adapting to Climate Change

This article seeks to characterize and define the role of the transactional attorney as clients, especially commercial real estate clients, respond to adaptation to climate change. It rests on the scientific evidence that climate change is caused principally by emission of greenhouse gases and will cause serious and mostly negative impacts. The goal here is 1) to recognize the almost unquestionable conclusion that climate change exists and will have an impact on many aspects of life including the rule of law, 2) that adaptation to climate change must happen and sooner rather than later, 3) that this adaptation is expensive and likely will be financed by a variety of players, including both government and the private sector, 4) that law necessarily will change (or adapt) along side the adaptation to climate change, 5) that transactions clients and their lawyers will need to be aware of are relevant law, know how it affects the clients' business, and know how the transactions attorney can help these clients achieve their business goals.This article considers these likely changes in the law for several categories of clients. In addition to business companies, it looks at the effect of activist investors and the insurance industry, which traditionally protects clients from risks. Because of the author's familiarity with transactions and the practice in the context of the commercial real estate industry, case studies to demonstrate themes will focus on clients involved in the acquisition of real estate, the financing of acquisitions and construction, commercial leasing, ownership & management of real estate to determine what the adaptation might be, how the law might change to respond to it and how the transactional lawyer will function. Part I focuses on the distinct role of the transactional attorney as a "transaction cost engineer." Part II provides a basic introduction to the science of climate change. The difference between the mitigation of climate change and adaptation to climate change is discussed. the three fundamental responses of adaptation are considered (defend in place against the impacts of climate change; retreat from the impacts of climate change and accommodate the impacts of climate change). Part III examines proposals for the likely changes to the law and legal system to reflect adaptation to climate change. Economic costs of adaptation to ensure the resilience are huge and are being recognized by the business community. Other barriers to climate change are becoming clear as well. Adaptation is a catalyst to thinking about the emerging law regarding climate change. A review of various academic thinking on how the law will change/adapt itself is discussed.Part IV considers the role of the transactional attorney as the law adapts to climate change.Part V expects that affected businesses, investors, government disclosure requirements, rules affecting availability of insurance are drivers of focus on the changes. Part VI provides a transactional case study: development of a real estate project after Hurricane Sandy to suggest adding adaptation to climate change to the typical checklists.

Build, Operate and Transfer (bot) Contract and Its Models from a Sharī‛ah Perspective

The build, operate and transfer (bot) contract is a new means of project and construction financing, which includes public-private partnership. Many countries are considering the bot contract as a mode of financing for construction projects as all citizens need public infrastructure services. This article is an attempt to describe various modes, structures and arrangements of bot and shed light on possible Sharī‛ah issues to demonstrate that bot is a Sharī‛ah-compliant type of financing.