In the UK, under the Government's "Private Finance Initiative" Launched in 1992, BOT Projects with a Value of GBP 48.3 Billion Had Been Signed by March 2006.DUBLIN Dublin, city, Republic of Ireland Dublin, Irish Baile Átha Cliath, county borough (1991 pop. 915,516), Leinster, capital of the Republic of Ireland, on Dublin Bay at the mouth of the Liffey River. , Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c48457) has announced the addition of "Public Private Partnerships: BOT Techniques and Project Finance, Second Edition" to their offering. The best-selling best·sell·er also best seller n. A product, such as a book, that is among those sold in the largest numbers. best practical guide to the financing of worldwide infrastructure projects using build-operate-transfer techniques is now in its second edition! Fully updated and with the new title of "Public Private Partnerships: BOT Techniques and Project Finance", this essential text has been revised to include: * Equity bridge financing Bridge Financing A method of financing, used by companies before their IPO, to obtain necessary cash for the maintenance of operations. Notes: These funds are usually supplied by the investment bank underwriting the new issue. and Islamic financing techniques * The current PFI PFI Pay for Inclusion (web search engines) PFI Private Finance Initiative PFI Private Finance Initiative (UK) PFI Prison Fellowship International PFI Port Fuel Injection (engines) situation * Additional terms and conditions in PFI transactions * The effect of changes in UK tax law and regulatory changes * Project finance cover for export credit agencies Export Credit Agency An agency established by a country to finance its nation's goods, investment, and services, often offers political risk insurance. The second edition of this hugely popular book guides you through: * The development of PPP (Point-to-Point Protocol) The most popular method for transporting IP packets over a serial link between the user and the ISP. Developed in 1994 by the IETF and superseding the SLIP protocol, PPP establishes the session between the user's computer and the ISP using * The different issues surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. the concepts of economic viability and financial viability of BOT projects * The key to managing tenders both from the public sector side and for prospective tenderers * The different contractual structures available, identifying the appropriate allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as of benefits and risks associated with a new infrastructure project * The terms to include in the all-important concession agreement Concession Agreement A right granted by a government to a corporation. It specifies rules under which the company can operate locally. Notes: Some concession agreements might include tax breaks for the corporation, in order to keep them from moving to another jurisdiction. * The various sources of finance available * Finance documentation. Recent years have seen a dramatic increase worldwide in the involvement of the private sector in the development and funding of public facilities and services, and techniques are continuously being developed to draw the public and private sectors together with a view to sharing the risks and rewards associated with such activities. These various techniques are often referred to as "public private partnerships" (PPPs) and range from the simple contracting out of services to the involvement of the private sector in the financing, design, construction, operation, maintenance and, in some cases, ownership of major infrastructure facilities. This book is concerned with the latter, commonly referred to as "BOT" projects. Although BOT is often used to describe the specific build-operate-transfer technique of infrastructure development (under which the private sector finances, constructs, operates and maintains the facilities for a given period, with the public sector acquiring operational control at the end of that period), the expression is given its wider meaning in this book and is used to refer to all types of infrastructure projects which involve private sector investment and funding. There are many factors contributing to the PPP trend. The public sector is currently suffering from a general shortage of public funds See Fund, 3. See also: Public available for the development of large-scale and capital intensive infrastructure projects, while at the same time increasingly perceiving the need for infrastructure facilities to promote economic growth in the shortest possible timescale timescale Noun the period of time within which events occur or are due to occur timescale n → délais mpl timescale time (Brit) n . BOT structures also allow the public sector to transfer onto the private sector many of the risks associated with the implementation of these projects. For private sector investors and financiers, BOT projects have opened up a whole new area of opportunities for new business and relatively high returns. The sharing of risks with other parties to the project and with the public sector entity concerned enhances the appeal of BOT. One aspect of many BOT projects which is attractive to investors and financiers is that they incorporate sovereign credit Sovereign credit is the credit of a sovereign country backed by the financial resources of that state. Sovereign credit is the opposite of sovereign debt. Fiat money is sovereign credit and sovereign bonds are sovereign debts. When money buys bonds, sovereign credit cancels sovereign debt. risk, and this renders them more suitable for financing in the bond markets. For a BOT project to succeed, it must be sufficiently attractive to both the public and private sectors. If the risks are felt to be too great, or to outweigh out·weigh tr.v. out·weighed, out·weigh·ing, out·weighs 1. To weigh more than. 2. To be more significant than; exceed in value or importance: The benefits outweigh the risks. the potential benefits and returns, the project will not proceed. As a general principle, however, investors and financiers are becoming more flexible in terms of the types of project in which they will participate and will now consider financing a project the revenue stream of which is market-based, rather than assured under a long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. contract with a creditworthy cred·it·wor·thy adj. Having an acceptable credit rating. cred  it·wor purchaser. Over recent years, much has been learned by both the public and the private sectors as to the types and extent of project risk which the other will bear and this knowledge is being used to accelerate the implementation of BOT projects in general. Additionally, repayment periods have lengthened length·en tr. & intr.v. length·ened, length·en·ing, length·ens To make or become longer. length en·er n. considerably for BOT projects in developed markets, in turn making them more attractive for project developers. The development of secondary markets for debt and equity in these markets has increased liquidity and enabled lenders to recirculate their investments. The spread of guarantees of project bonds being given by monoline insurers with strong credit rating has attracted new sources of funding. Many countries with developed economies have made substantial use of BOT techniques. In the UK alone, under the government's "Private Finance Initiative" launched in 1992, BOT projects with a value of PS48.3 billion had been signed by March 2006, of which about one half represented transport projects. In the emerging markets, however, the implementation of BOT projects has progressed more slowly than expected. This has largely been as a result of the perceived political risks associated with such projects and the difficulties and delays which have been experienced in relation to many of them. As governments of emerging markets countries become more accustomed to the requirements of foreign investors and financiers recognise that the BOT approach is increasingly the way in which the international markets expect infrastructure to be developed and operated, the implementation of BOT projects will become easier and quicker, thereby encouraging further projects. This work covers the basis of BOT techniques and their potential advantages and disadvantages for the participants in these projects. It gives a general view of the application of project finance techniques to projects of this type and also covers in some detail project viability and public/private sector risk allocation issues, procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. procedures, concession agreements and the sources of financing available for these projects. In a book of this type, it is possible only to give a general overview of BOT structures and the issues involved. It should be borne in mind that every project is unique and the statements contained in this publication will not be equally applicable to all BOT projects. There is no substitute for taking appropriate advice on each individual project. Key topics covered: * Introduction to infrastructure projects * Project viability * Tenders * Overview of contractual structures * Concession agreements * Sources of finance * Finance documents * Closing Observations For more information visit http://www.researchandmarkets.com/reports/c48457 |
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