Project Loans Research Articles

Private Sector Project Loans From European Investment Bank And Implementation Of Turkey

Avrupa Yatırım Bankası Avrupa Birliğine üye ve aday ülkelerin kalkınmasına destek veren uluslararası bir finansman kurumudur. Türkiye Avrupa Birliğine üyelik başvurusunun yapılmasından sonra birlik ile çeşitli dönemlerde mali protokoller imzalamıştır. Bu mali protokoller çerçevesinde Türk özel sektörünün projelerinin finansmanında banka önemli roller oynamaktadır. Banka Türkiye’nin özel sektör proje kredilerinin finansmanında özel sektör kalkınma bankaları ile devlet sermayeli ihtisas bankalarının proje değerlendirme ve finansman hizmetlerinden yararlanmaktadır. Makale konumuz tarihsel süreci içerisinde Avrupa Yatırım Bankasının ülkemizdeki özel sektör projelerine tahsis ettiği kredilerdeki uygulamış olduğu stratejiler, kredi kullanımında görev almış olan bankalar, kredi kullandırma koşullarını ve uygulama alanlarını içermektedir. Makale, teorik literatür taraması yanında krediyi kullandırmakta olan bankaların faaliyet raporlarından elde edilen bilgilerden oluşmuştur.

Turning Around Distressed Project Finance Assets in India: What More Needs to Be Done?

With the Insolvency and Bankruptcy Code firmly in place, India’s distressed project finance assets are turning out to be attractive to institutional investors. Project finance assets need asset-and deal-specific financing solutions in order to achieve successful turnarounds. The turnaround solution must ensure optimum risk allocation and mitigation leading to the buildup of future cash flows. This will, in turn, lead to deleveraging of stressed balance sheets. The authors present a conceptual model and argue that even now the political and regulatory risks for infrastructure project loans in India have not been completely mitigated. This has resulted in a situation of a debt overhang, wherein even economically viable projects may not attract fresh funding. To address this, the article suggests the possible use of priority funding structures, where existing lenders cede charge of the assets in favor of a new lender as a way to reduce the cost of debt and unlock shareholder value. This solution will also ensure that the restructuring package is properly priced (from the project finance lender’s perspective), resulting in the efficiency and viability of the restructured asset.

The Akiba Mashinani Trust, Kenya: a local fund’s role in urban development

This paper describes the funding and financial services provided by the Akiba Mashinani Trust (AMT) to support the Kenyan Homeless People’s Federation (Muungano wa Wanavijiji). Muungano is a federation of autonomous savings groups with over 60,000 members from informal settlements across Kenya. Savings are critical because they enable wealth accumulation, demonstrate the capacity of the community to repay loans and hence leverage additional resources, and build social capital among members. AMT is able to use these savings as seed capital for revolving funds at the community, city and national scales. The funds offer informal settlers a range of financial products, including community project loans, which allow savings groups to finance social housing, sanitation and basic infrastructure in an affordable way. Therefore, unlike formal banking and microfinance institutions, AMT positions its financial services within a broader effort to improve the physical and social fabric of urban informal settlements. The experiences of Muungano and AMT demonstrate the catalytic impact of establishing appropriate financial services geared towards low-income groups – and crucially, how the savings of low-income people can leverage government resources to achieve more inclusive cities.

THE ROLE OF NGOS IN SOME FIELDS OF HUMAN DEVELOPMENT IN FAYOUM GOVERNORATE

The importance of NGOs is demonstrated by providing basic ruralservices, improving the conditions of the Egyptian village and thedisadvantaged village in general, providing soft loans for small projects,supporting basic services for health and education to improve the rural level ofEgypt and reducing the rural-urban gap in Fayoum governorate.The aim of this research is to identify the most important servicesprovided by the studied NGOs in the various human development fields, theavailability of the necessary elements for the NGOs to achieve humandevelopment, the nature of the relationship between the degree of performanceof NGOs in human development, Role.The most important results obtained from the fields of service providedto the beneficiaries were the response of the beneficiaries to improve thestandard of living. The mean was 19.3, which reflects a large degree ofresponse according to the Likert scale. Between 19.3 - 19.3). In terms ofilliteracy eradication, the results showed the availability of all elements andfoundations to enable the success of illiteracy eradication programs. He stressedthe responses of the beneficiaries of these programs, where the value of themathematical mean (19.1). The results also confirmed a high degree ofhomogeneity in the responses of beneficiaries of programs Literacy waseliminated as the difference coefficients ranged from (..9.32 to 159.02).Regarding the field of training, the results indicated the availability ofthe basic means for the success of the training programs provided by the NGOsin the various fields. The response of the beneficiaries of these courses has beengreatly emphasized.The results showed that the health services provided are of high qualityand the society has clear mechanisms for monitoring and evaluating their healthprograms. The response of some beneficiaries to the lack of approval of healthservices, where the mean of the responses (.9..) and the coefficient of difference (..9..2), and with regard to the field of empowerment of women,the results show that there is benefit from services provided to women NGOs ingeneral, (1935) and the difference between (3.9012 and .79.42).The results indicate that the values of the calculated correlationcoefficients are greater than the values of the correlation coefficients at 02 and32. Therefore, we reject the theory of null hypothesis which states that there isno correlation between the axes of the study (the dependent variable) and thedifferent dimensions of the independent variable. On the existence of acorrelation between dependent factors and independent factors in most casesunder study.From the above, we can emphasize that all the factors under study forNGOs have a great impact on human development.

Determination on the volume of project revenue bonds in PPP project: A case of Chongqing rail transit line 9

PPP has become an important means for the government to ease the financial pressure to provide public goods and services. However, there is a widespread shortage of construction funds in PPP projects.The construction funds rely heavily on project company capital and loans from financial institutions, it is not conducive to the rationalization of the structure of financing. Under this background, we introduced the project revenue bonds into the PPP project which is rarely studied. Applying the research results to the first phase project of Chongqing Rail Transit Line 9, a case study was carried out to enhance the operability of the PPP project revenue bond issuance mechanism. We found that it is reasonable and necessary to apply project revenue bonds in PPP projects, and determine the most appropriate scale of issuance through the case. We provide a solution for PPP projects to solve the construction fund shortage problem, and provide a reference for our country to promote and implement the PPP project.

MONITORING AND CREDIT INSURANCE ENVIRONMENTAL MEASURES

Introduction. Development bank loans for environmental projects in Ukraine must be based on understanding and evaluating the increased risks that they objectively characteristic that may be attributed to unusual risks. An important element of financial security implementation of environmental policy should be the insurance of environmental risks. Environmental situation requires an expansion of traditional as well as search and introduction of new types of insurance, including insurance operating environmental projects from the risk of failure to achieve certain environmental effects. Purpose. Substantiate need for credit insurance and environmental measures as additional tools extrabudgetary funding projects to preserve the environment. Results. The theoretical and methodological approaches to project environmental security, based on insurance against the risk of inability to achieve projected environmental effects, based on the principles of mutual benefit and economic interest of the insured in improving their own environmental safety and to determine the damages as compensation for the losses incurred in connection ‘connection with failure to insured stated in the implementation of environmental projects. Conclusion. It is noted that the important criteria for evaluation of banking risks in this sector are: compliance with Environmental Project national, regional, sectoral objectives and development programs; scientific and technical level of the project; quality of corporate and regional management in the field of environmental protection.

Microlending Chickens and Entrepreneurship: Empowering Poor Rural Families in Kenya

This paper is about a project that combines entrepreneurship and microlending—two currently significant concepts in international development. The purpose of the project was to provide poor families with a source of income and protein-rich food through microlending chicken start-up support. Its method was to partner with Nutri-Fresh Farm & Agri-Hub, a non-governmental organization for creating agricultural entrepreneurs from subsistence farmers and youth in Kenya. Each family signed a Poultry Project Loan Agreement stating their obligation to repay—without interest—in the form of mature poultry cocks the costs of the chicks, feeds, vaccines, training and follow-up until the chicks attained maturity at six months. The repaid amounts would be invested in new families. Recently Simon Wachieni, Director of Nutri-Fresh Farm & Agri-Hub, confirmed that all families so far involved have eggs for sale and as a regular source of protein for themselves, that they increase their asset through the additional hatching of their own chicks, and that they are repaying the loan. Our final conclusion is that this project combining microlending chickens and entrepreneurship has been successful and that it can be useful elsewhere as well.

Chinese Intergovernmental Relations and World Development: Origins and Impacts of Chinese Export Credits

ABSTRACTGenerously offering loans for development projects around the world, China has recently brought them to Eastern Europe, namely to Belarus. By reviewing relevant development literature and using Belarus as a case study, this article contributes to the debate on China’s emergence as a source of investment and aid. It addresses four concerns: the tools used by China, the driving forces behind proactive investing behavior, the advantages and disadvantages for a recipient country, and the conditionality attached. The article demonstrates that Chinese export credits resolve a latent conflict of interests between the central and local governments by transferring Chinese businesses abroad. Meanwhile, the borrowers have to deal with extra costs, for instance, high expenses to maintain final facilities or the cost of Chinese labor adaptation. In Belarus, the situation is exacerbated by the language barrier and a general anxiety of the local population derived from the lack of experience with foreigners.

With a little help from my friends: Global electioneering and World Bank lending

This paper investigates how World Bank lending responds to upcoming elections in borrowing countries. We find that investment project loans disburse faster when countries are aligned with the United States in the UN. Moreover, disbursement accelerates in the run-up to competitive executive elections if the government is geopolitically aligned with the U.S. but decelerates if the government is not. These disbursement patterns are consistent with global electioneering that serves U.S. foreign policy interests but jeopardizes the development effectiveness of multilateral lending.

Troubled Waters: Impact of the Private Sector in Implementing the Right to Water

The United Nations Development Program’s Human Development Report of 2006 indicates that as many as 1.1 billion people worldwide do not have access to safe drinking water. Since its acceptance as a recognized basic human right, the obligation to create of a framework for providing clean and safe drinking water to all human beings across the globe has fallen upon the respective Government Agencies. Yet, multinational corporations such as Veolia Environnement, Suez Environnement, Pepsi, Nestle and Coca-Cola are amongst the major private sector participants in global water supply systems. This trend is often seen in countries where the Governments choose to engage private corporations because of their inability to provide for the infrastructure and technical expertise required in building a public water supply system. Other instances where private participation is seen is where there is an obligation to employ private players in fulfillment of terms accepted in agreements with institutions providing loans for funding such projects. Another important reason for large-scale private participation is because water as a resource is the primary output product or is a prime resource in the supply chain of these industries.This paper attempts to firstly trace the evolution of the Right in the international law regime, in brief. Secondly, the paper attempts to ascertain the cost associated with the human right to water. Then, the paper explores the measures undertaken by international organizations in enforcing this right. The paper then examines methods such as privatization, public-private partnerships, concession agreements and international investment agreements with the support of international organizations such as the World Bank, and the outcome of such efforts. Finally, this paper explores how Corporate Entities- the private sector involved in construction of facilities and providing water utilities to the public on behalf of the government and the entities involved in packaging/bottling of water for commercial sales embrace the ‘right to water’, and the efforts in developing clear standards and metrics for what companies should/must do; ways to evaluate their compliance with these standards and the consequences of failure to comply.

Constraints to the Development of A Fully-Fledged Municipal Bond Market in Ghana

Financial markets have become vital tools for sustaining the economies of developing countries to this, many developing countries have embarked on a number of financial sector developments, the government of Ghana as part of the structural adjustment programme launched the Financial Sector Adjustment Programme (FINSAP) to address the deterioration problems in the financial sector. But Ghana still lacks a well-established banking sector and local commercial banks usually find it difficult to provide long-term loans for infrastructure projects. Infrastructure projects often require funding that would exceed the amount that a commercial bank can lend to a single customer under banking regulations. They are not well positioned to finance infrastructure that is intended to generate revenues over 20 to 30 years.Therefore in order to meet the country’s infrastructure financing needs, there is the need to fall on a substantial larger financial option to finance local infrastructure and projects. Ghana’s Local infrastructure projects typically involve a large investment of funds over several years and the expectation of the Priority Action Plan by African Development Bank has necessitated the need of issuing municipal bond to finance it infrastructure projects It was in this light that this paper focused on the constraints and challenges to the development and the implementation of a domestic bond market, and the applicability of such experiences to Ghana. The study specifically analyzed the challenges hindering the development and implementation of municipal bond market in Ghana.The study concludes that Current sources of finance for government of Ghana can’t meet the 10-30 years developmental needs of Ghana so there is the need for municipal bond market to issue municipal bonds. But Government of Ghana hasn’t made much concerted effort by putting a legal or operational framework in place which would enable metropolitan, municipal and district assemblies to issue bonds to finance their infrastructure projects.

Adaptation Strategies after Cyclone in Southwest Coastal Bangladesh – Pro Poor Policy Choices

People live under the constant threats of natural hazards in the coastal areas all over the world. Thus raise the questions: how do they react to the risk of those natural calamities and how do they adapt with the adverse situations that are derived by those calamities. Taking these into considerations, this research explores the ‘atlas of the locally adopted strategies’ to cope with adverse effects of cyclone Aila in southwest coastal Bangladesh. Particularly, this research has explored the community level practices in agriculture, housing, water resources, communication and employment generations. An empirical survey was undertaken with 145 respondents by using semi-structured interviews with selected social groups and their households’ assistants. Besides face-to-face interviews, this survey applied group level qualitative assessment methods i.e. FGD (focus group discussion), Social Domain Analyses, and In-depth Interviews to collect the data. Results show that people have started to cultivate saline tolerant rice and vegetables on raised homesteads. They are using dripping irrigation methods. Rain water harvesting and artificial aquifer tube-well have been introduced for water management. The houses’ mud walls have been replaced by or even newly rebuilt with Goran wood or bamboo sticks to save lives. They have formed groups to save money for the next disaster and taken out loans for small entrepreneurship projects. Due to the crises of fodder, pastureland and freshwater, people have started to rear small animals and birds like sheep, goat and pigeon instead of cow and buffalo. New technology based shrimp farming is another new innovation. Discussions were held on the pros and cons of all of the above strategies that help to design the long-term risk reduction planning at the local level and addresses the ‘not the need-based planning but the acceptance-based strategies’ mantra of development in context of community based disaster management planning. This paper adds values to the climate change adaptation field by addressing the acceptance of modern disaster risk reduction technologies into a traditionally modified approach based on the empirical evidence of coastal livelihood analysis in Bangladesh.

Brazilian biotechnology network - the challenge to innovate in biotechnology in Brazil

Brazilian biotechnology network - the challenge to innovate in biotechnology in Brazil

Using Monte Carlo simulation with DCF and real options risk pricing techniques to analyse a mine financing proposal

This paper uses Monte Carlo simulation with both DCF and real options risk pricing techniques to evaluate an actual project financing proposal for a small gold mine. Project free cash flows accrue to equity, the host government through a royalty and corporate income tax, and creditors through a non-recourse project loan. Net present values of the contingent payouts to each project participant are calculated using real option and discounted cash flow valuation methods. The loan covenants are analysed to demonstrate how they impact value and influence the possibility of default. In particular, a gold hedging covenant is studied whereby gold put options are purchased to provide protection from low gold price environments. The put options are paid for by selling exposure to higher gold prices through call options. The analysis shows that simulation can assist with determining whether financing terms are appropriate and whether these terms can be altered to better suit the project risk profile.

Securitizing Project Finance Loans: Are PF CLOsPoised for a Comeback?

Having been pronounced dead by many in 2008, collateralized loan obligations (CLOs) have arisen like a phoenix in the aftermath of the global credit crisis. Meanwhile, there is a serious call for project finance loans to fund exponential growth in infrastructure development needs. Project loans are perhaps the largest class of commercial loans that have not taken an active role in the CLO market, and the CLO provides a mechanism for monetizing this relatively illiquid class of loans. This article discusses the numerous attributes of project finance loans that make them a particularly attractive asset class for CLOs and also those factors that pose challenges to their securitization.

An Open Quadrant: High-Yield, Long-TermInstitutional Project Loans

This article is about a type of senior debt capitalization that currently does not really exist, but likely will develop soon—long-term, high-yield project finance loans for infrastructure in Organization for Economic Cooperation and Development (OECD) countries. The author predicts that a subset of institutional investors will fill this open segment of the project finance loan market, because senior, secured, long-term, high-yield loans will meet many of their investment objectives while utilizing their capabilities and providing them with a competitive advantage. He also predicts that a number of project owners and sponsors will demand this loan product once available, because it can support their specific senior capitalization objectives, especially with respect to minimizing refinancing risk while optimizing leverage and flexibility. <b>TOPICS:</b>Project finance, other real assets, emerging

Rural infrastructure development in the Volta region of Ghana: barriers and interventions

PurposeAlthough a high proportion of the Ghanaian population live and work in under‐developed areas, research on rural infrastructure development is scarce. The purpose of this paper is to explore the challenges confronting rural infrastructure development and the requisite incentives needed to boost it.Design/methodology/approachAn inductive methodological approach was adopted using a structured questionnaire to survey the perceptions of rural contractors.FindingsIncentive systems identified include the provision of mobilization funds for projects; a plant pool for rural contractors; special allowance for rates of project items; and provision of letters of credit to secure loans for projects. Key challenges confronting rural construction were identified as a lack of financial institutions willing to support projects with funds; lack of potable water; lack of good health care systems; and lack of a goods market to supply materials.Research limitations/implicationsIdentification of challenges and incentive systems for rural infrastructure development provides an opportunity to reinvigorate rural infrastructural development in sub‐Saharan Africa.Practical implicationsThe study will be of value to all project partners throughout the supply chain who contemplate rural infrastructure development.Originality/valueThe paper presents a novel epitome of rural infrastructure delivery in the developing country of Ghana.

Target-Setting Practice for Loans for Commercial Energy-Retrofit Projects

AbstractOvercoming the financial barriers to energy-efficiency (EE) investments requires efforts to explicitly evaluate energy-related risks during the commercial loan underwriting. To support such efforts, the objective of this paper is to suggest a novel target-setting practice that borrowers and lenders collaboratively can use during the early stages of an energy-retrofit project. The practice uses a simulation called energy retrofit loan analysis model (ERLAM) to determine the target-building performance and the allowable cost for design and construction. Using a case study of an energy-retrofit project, this paper demonstrates use of ERLAM by evaluating the effect of two identified energy-related uncertainties (project-cost risk and operational-practice risk) on the financial performance of the investment. This target-setting practice can help project parties gain greater understanding and early confidence in the feasible size and terms of a loan before moving to design development. As a result, the ...

Regional Organizations and International Politics: Japanese Influence over the Asian Development Bank and the UN Security Council

Do regional hegemons use their power in regional organizations to advance foreign policy objectives? The authors investigate whether Japan leverages its privileged position at the Asian Development Bank (adb) to facilitate project loans for the elected Asian members of the United Nations Security Council (UNSC), a platform from which it seeks to shape global affairs. Analyzing panel data of adb loan disbursements to twenty-four developing member-countries from 1968 to 2009, the authors find that temporary UNSC membership increases adb loans, particularly during the post–1985 period, when Japan asserted greater influence in multilateral organizations. They estimate an average increase of over 30 percent. Because of Japan's checkered history of imperialism, the adb provides a convenient mechanism by which the government can obfuscate favors for politically important countries. Acting through this regional organization enables Japan to reconcile a low-key approach to foreign affairs with the contradictory goal of global activism–leading without appearing unilateralist.

Regional Organizations and International Politics: Japanese Influence Over the Asian Development Bank and the UN Security Council

Do regional hegemons use their power in regional organizations to advance foreign policy objectives? The authors investigate whether Japan leverages its privileged position at the Asian Development Bank (aDb) to facilitate project loans for the elected Asian members of the United Nations Security Council (UNSC), a platform from which it seeks to shape global affairs. Analyzing panel data of aDb loan disbursements to twenty-four developing member-countries from 1968 to 2009, the authors find that temporary uNsc membership increases aDb loans, particularly during the post-1985 period, when Japan asserted greater influence in multilateral organizations. They estimate an average increase of over 30 percent. Because of Japan’s checkered history of imperialism, the aDb provides a convenient mechanism by which the government can obfuscate favors for politically important countries. Acting through this regional organization enables Japan to reconcile a low-key approach to foreign affairs with the contradictory goal of global activism-leading without appearing unilateralist.