Present Value Of Revenues Research Articles

FINANCIAL SUPPORT FOR THE IMPLEMENTATION OF UKRAINIAN WATER TRANSPORT COMPETITIVE STRATEGIES IN THE MACROENVIRONMENT STRUCTURAL CHANGES CONDITIONS

Topicality. The study's relevance is because, over the past thirty years, the Government of Ukraine has faced a complex set of areas for financing the implementation of competitive strategies for water transport, including transport infrastructure. The efficiency of providing transport services for the transportation of goods and passengers by waterways and the operation of its infrastructure, the level of competitiveness of water transport depends on the correctness and justification of funding for the implementation of competitive strategies of water transport. Aim and tasks. The work aims to identify sources of financial support for the implementation of competitive strategies of water transport of Ukraine in the context of structural changes in the macro-environment. Research results. The study results suggest that the sources of funding to ensure the implementation of competitive strategies of water transport in Ukraine in the context of structural changes in the macro-environment can be divided into primary (taxes; fees; mandatory payments; targeted inter-budgetary transfers; capital accumulated by economic entities, credit, and financial institutions; payments by consumers of transport services for the carriage of goods and passengers by waterways; payments by users of water transport infrastructure, etc.) and additional (third parties contributions; contributions of property, assets, lands, or commercial firms owners to the development of existing or construction of new water transport infrastructure facilities; sale or long-term lease of property (lands) owned by the state or communities and adjacent to waterways and water transport infrastructure; related services - funds received from advertising, rent, catering services, shops, parking lots, motels, excursions, etc.). To find additional resources to finance the implementation of competitive water transport strategies, private capital can be attracted to finance transport infrastructure through various public-private partnership schemes. Alternative ways to finance the implementation of water transport competitive strategies include: the "infrastructure plus ownership" approach, the Regulated Asset Base (RAB) model, the mechanism of ?the least present value of revenue? (LPVR), non-tariff revenues from water transport. The analysis of the basic tools of financial maintenance of water transport competitive strategies in the conditions of structural changes of a macro-environment is carried out. Criteria for selecting sources of funding for the implementation of competitive water transport strategies are identified, among which are such as the size and stability of income and social impact of the project; economic efficiency of using a source of funding; payback period of investments; the level of solvency of investors; the level of balance of economic interests of project investors and those who will directly or indirectly benefit from its implementation; level of macroeconomic stability; the level of financial market stability; the level of political and public support for the project; technical capabilities and features of the project. Conclusions. The authors of the article propose strategic recommendations for improving the situation in the field of financial support for the implementation of water transport competitive strategies in Ukraine in the context of structural changes in the macro-environment. These strategic recommendations allowed to further development of the organizational and economic mechanism structure for financing the implementation of Ukrainian water transport competitive strategies, which, unlike existing ones, is based on the integration of financial entities in the field of water transport with national, European water transport strategy and sustainable development goals to ensure global economic and environmental security and enhances the adaptability and competitiveness of Ukrainian water transport in the macro-environment structural changes context.

Effects of Public Supports for Mitigating Revenue Risk in Public–Private Partnership Projects: Model to Choose Among Support Alternatives

Public supports for mitigating revenue risk in public–private partnership (PPP) projects are used for attracting private financing for public infrastructure. The difficult assessment of impacts that these supports may have on PPP projects may lead to choosing a nonoptimal form of guarantee. The intrinsic PPP project characteristic of partnerships among different actors lasting a long period imposes the simultaneous achievement of competing objectives and a greater transparency in risk allocation. This paper proposes a structured model for assessing and benchmarking the impact of different public supports released to mitigate revenue risk in PPP projects, from the standpoints of the private and public actors, for choosing the public support that better ensures the achievement of a win–win condition. First, we quantify the net benefit gained by each party under three support instruments, namely the minimum revenue guarantee (MRG), least present value of revenue (LPVR), and price cap (PC), by identifying the condition of satisfaction of the involved actors and analyzing the probability that such condition is not achieved for each party. Then, by applying the Monte Carlo simulation, we benchmark and choose the public support that ensures compliance with the win–win condition. We use two case studies to apply the model and a plan of experiments for investigating how the choice of the optimal form of public subsidy for revenue risk mitigation may change based on contextual factors and project characteristics. The results reveal that public supports are not beneficial to all parties, since they generate, under different conditions, unequal net economic benefits for the two parties and/or unfair risk allocation. The results of the sensitivity analysis show that the win–win condition achievement, in terms of actors’ performance and risk allocation, depends on the characteristics of the project and of public supports. The findings of the study emphasize the importance of the accurate selection of the form of public support before its releasement in order to ensure a successful PPP.

Solving the Asymmetry Multi-Objective Optimization Problem in PPPs under LPVR Mechanism by Bi-Level Programing

Optimizing the cost and benefit allocation among multiple players in a public-private partnership (PPP) project is recognized to be a multi-objective optimization problem (MOP). When the least present value of revenue (LPVR) mechanism is adopted in the competitive procurement of PPPs, the MOP presents asymmetry in objective levels, control variables and action orders. This paper characterizes this asymmetrical MOP in Stackelberg theory and builds a bi-level programing model to solve it in order to support the decision-making activities of both the public and private sectors in negotiation. An intuitive algorithm based on the non-dominated sorting genetic algorithm III (NSGA III) framework is designed to generate Pareto solutions that allow decision-makers to choose optimal strategies from their own criteria. The effectiveness of the model and algorithm is validated via a real case of a highway PPP project. The results reveal that the PPP project will be financially infeasible without the transfer of certain amounts of exterior benefits into supplementary income for the private sector. Besides, the strategy of transferring minimum exterior benefits is more beneficial to the public sector than to users.

The joy of flying: Efficient airport PPP contracts

We derive the optimal concession contract for an airport where the concessionaire’s effort impacts either non-aeronautical revenue (shops, restaurants, parking lots and hotels) or aeronautical revenues (passenger and airline fees). Our first model assumes that demand for the infrastructure is exogenous whereas demand for non-aeronautical services depends both on passenger flow and on the concessionaire’s effort and diligence. We show that the optimal principal-agent contract separates exogenous and endogenous risks. First, the term of the concession varies inversely with passenger flow, so that the concessionaire bears no exogenous demand risk. Second, the concessionaire bears part or all of non-aeronautical risk, which fosters effort. We also study a model where the concessionaire’s effort affects demand for aeronautical services and focus on the case where the contract includes a demand trigger for investment as an incentive. Both optimal contracts can be implemented with a Present-Value-of-Revenue (PVR) auction in which firms bid on the present value of aeronautical revenue and the concession ends when the bid is collected. PVR auctions have been used to auction airport PPP contracts in Chile, and demand triggers for investment have been used both in Brazil and Chile.

SOSIAL-EKOLOGIS DALAM PEMBENTUKAN ENTITAS AGRIBISNIS KEMITRAAN DI TENGAH STRUKTUR SOSIAL KEMASYARAKATAN HETEROGEN

The scarcity of land in establishing agro industry causes the need of productive agribusiness partnership. The aim of this study are to: (1) identify social stratifications and social differenciations as determinant to establish agribusiness partnership entity, (2) describe social ecology characteristics as determinant to establish agribusiness partnership entity, (3) compare pre-plasma income and post-plasma expectation income. The research was conducted in Bandar Jaya and Umpam Villages Lengkiti Sub District of OKU Induk, South Sumatra Province. The purposive sampling method was used of which the farmers of yearly crop were chosen. The result of the social structure analysis showed that from the average income, education level and culture acceptance, the farmers would be responsive to the partnership. Subsequently, the analysis of socio-ecological characteristics of both villages indicated that the farmer’s of both villages would be more responsive to the partnership. The present value of revenues in both village lower than palm oil revenue expectation of partnership with PT AP. The results of this study indicated that Ho hypothesis is accepted, which means the farmers' income of pre-plasma (slab) in both villages less than the income of farmers expectations of post-plasma (oil palm), so that the partnership would be easily established. Keywords : Sosio-ecology; Agribusiness Partnership; Sosio-culture

Economic contribution of wild edible mushrooms to a forest fringe ethnic community in some eastern lateritic parts of India

Dry deciduous forests of the eastern lateritic part of India are a typical case where forest valuation is yet to be integrated with the non-timber forest products like wild edible mushrooms (WEMs), which have a wide use in subsistence and cash income. A detailed accounting of the production and utilization of WEMs harvested from that region was made to highlight the economic worth of WEMs to the Santal community of this region. The WEMs production in the forest was in a polynomial pattern during the monsoon period. The net present value of revenues from WEMs was estimated to be contributing 9.83 and 10.29 % of total annual income of a Santal family of the Choupahari and Gonpur forests, respectively. The ecological footprint of the Santal communities on WEMs was higher in the forest area which was closer to the local markets than did the distant ones. Forest areas of the eastern lateritic part of India have a strong potentiality to produce WEMs that may be helpful for socio-economic upliftment of local tribal communities through the development of entrepreneurship and policy making.

A prey-predator model with harvesting for fishery resource with reserve area

Considering that over exploitation would result in the extinction of the population, we propose and investigate a Holling II functional response prey-predator model with harvesting for fishery resource in a two-patch environment: a free fishing zone (patch 1) and a reserve zone (patch 2) where fishing is strictly prohibited. First, the presence of harvesting can impact the existence of equilibria. Further, stability criteria of the model is analyzed both from local and global point of view. Our results indicate that so long as the prey population in the reserved zone does not extinct, the both prey always exist, that is marine reserves should ensure the sustainability of system. Thus, marine reserves not only protect species inside the reserve area but they can also increase fish abundance in adjacent areas. Next, the existence of bionomic equilibrium and the optimal harvesting policy are discussed. The present value of revenues is maximized by using Pontryagin’s maximum principle. It is established that an infinite discount rate leads to complete dissipation of economic rent. Finally, some numerical simulations are given to illustrate our results.

Harvesting of a phytoplankton–zooplankton model

Considering that some phytoplankton and zooplankton are harvested for food, a phytoplankton–zooplankton model with harvesting is proposed and investigated. First, stability conditions of equilibria and existence conditions of a Hopf-bifurcation are established. Our results indicate that over exploitation would result in the extinction of the population and an appropriate harvesting strategy should ensure the sustainability of the population which is in line with reality. Furthermore, the existence of bionomic equilibria and the optimal harvesting policy are discussed. The present value of revenues is maximized by using Pontryagin’s maximum principle subject to the state equations and the control constraints. We discussed the case of optimal equilibrium solution. It is found that the shadow prices remain constant over time in optimal equilibrium when they satisfy the transversality condition. It is established that the zero discounting leads to the maximization of economic revenue and that an infinite discount rate leads to complete dissipation of economic rent. Finally, some numerical simulations are given to illustrate our results.

The principle of inconsistent trinity in the selection of procurement systems

This paper examines the economic characteristics of construction procurement systems partially in terms of transaction cost economics and partly those of project management. It proposes the theoretical principle of an inconsistent trinity, according to which, in selecting a procurement system, the client will inevitably face a trade‐off between the procurement system best able to deliver: (1) fastest completion of the project (and therefore higher discounted present value of revenue from the project); (2) least vulnerability when making changes (lower transaction hold‐up costs arising from temporal or process specificity); as well as (3) least vulnerability to non‐performance (lower transaction measurement costs from greater visibility to third parties for ordering of disputes). The model provides a potentially testable contribution to a transaction cost theory of construction procurement. It also has two implications: (1) the three main family types of procurement systems are held to be intrinsically different in economic terms, so selection of procurement system does matter; (2) no system can enjoy absolute advantage over others, so the proposed strategy of procurement system selection is to align the characteristics of procurement systems with attributes of projects.

Privatizacija izgradnje i eksploatacije puteva - izazovi i preporuke

Participation of private sector in infrastructural projects, highways in particular, has numerous advantages - freeing up the funds that can be used elsewhere being just one of them. The problems arising from awarding concessions can be, to a large extent, overcome by modifying the design of auction mechanism. The Demsetz auction stipulates the award of concessions for a fixed time period, the consequences of which are that the entire demand risk is borne by the concessionaire, and further inefficiencies, such as government guarantees. Modification of Demsetz auction results in LPVR (least present value of revenue) auction and creates a framework for a more intensive and efficient participation of private sector in infrastructural projects.

A model for the integrated optimization of oil production systems

Typically, the optimization of oil production systems is conducted as a non-systematic effort in the form of trial and error processes for determining the com- bination of variables that leads to an optimal behavior of the system under consideration. An optimal or near opti- mal selection of oil production system parameters could significantly decrease costs and add value. This paper presents a solution methodology for the optimization of integrated oil production systems at the design and oper- ational levels, involving the coupled execution of simul- ation models and optimization algorithms (SQP and DIRECT). The optimization refers to the maximization of performance measures such as revenue present value or cumulative oil production as objective functions, and tub- ing diameter, choke diameter, pipeline diameter, and oil flow rate as optimization variables. The reference con- figuration of the oil production system includes models for the reservoir, tubing, choke, separator, and business economics. The optimization algorithms Sequential Quadratic Programming (SQP) and DIRECT are con- sidered as state-of-the-art in non-linear programming and global optimization methods, respectively. The proposed solution methodology effectively and efficiently optimizes integrated oil production systems within the context of synthetic case studies, and holds promise to be useful in more general scenarios in the oil industry.