• Title/Summary/Keyword: project financing

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PROBLEMS AND SOLUTION OF IDENTIFICATION AND APPROVAL OF PRIVATELY FINANCED INFRASTRUCTURE PROJECTS IN CHINA

  • Xiangrong Du;Tsunemi Watanabe
    • International conference on construction engineering and project management
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    • 2005.10a
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    • pp.731-736
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    • 2005
  • The governmental attitude toward private investment and financing for infrastructure projects has changed from the initial prohibition to the current encouragement in China, which has been embodied in the legal documents and administrative process. However, the problem of identification, bidding, and approval procedure for privately financed infrastructure projects has been observed in policies and administrative measures promulgated by different or even the same government branches, which is prohibitive factors for smooth project implementation. After analysis of the identification, bidding, and approval process of infrastructure projects, the authors proposed a simplified and alternative procedure and clarified the key points of relevant project documents.

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Alternatives for Activating Development Finance in the Regional Development Projects (지역개발사업을 위한 개발금융 활성화 방안)

  • 박원석
    • Journal of the Economic Geographical Society of Korea
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    • v.2 no.1_2
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    • pp.63-81
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    • 1999
  • The aims of this study are to analyze the current states and problems of development finance in the regional development projects, and to examine new sources and techniques of development finance for activating regional development projects. Analyzing the current states of development finance in regional development project, the problems such as the poorness of development function, the low accessibility to formal financial market, especially capital market, and the dominant use of corporate financing can be seen. In these context, four alternatives are proposed in order to activate development finance. First alternative is to use the funds which invest the equity of real estate, such as REITs. The second is to activate project financing. The third is to use asset backed securities. The forth is using mezzanine capitals as the means of protecting investors.

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A Correspondence of adopting After-Sale System in the Apartment Construction (공동주택 건설의 후분양제 도입에 따른 대응방안)

  • Jang Joo-Hwan;Han lee-Soo;Jee NamYong
    • Proceedings of the Korean Institute of Building Construction Conference
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    • 2005.11a
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    • pp.137-140
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    • 2005
  • Given importation of After-Sale System, we may assume that it comes to be changed on housing industry Construction companies have applied installment sale to fund of building, but now they have to take it upon themselves to borrow from PF(Project Financing) on the banking system. The purpose of this study is to assume the change and influence in the construction fund after adopting After-Sale system and suggests the appropriate strategy in PF for providing fund. Construction Companies can produce their Profits by concentrating on reconstruction part especially in the metropolitan area. And They make their own brands and have their competitive power. In this housing market, if After-sale system comes publically, there will be big changes. Until now many companies have no difficulties in making funds to manage construction activity. But After-sale system gives difficulties to many companies. Therefore they have to prepare their own funds under their responsibilities from banks of Project financing.

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Modeling an Islamic Student Financing Securitization

  • BAKRI, Mohammed Hariri;ISMAIL, Shafinar;AL-SHAMI, Samer;ZAINAL, Nurazilah;RIDZUAN, Abdul Rahim
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.10
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    • pp.1047-1056
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    • 2020
  • The study investigates developing an Islamic student financing securitization model based on sukuk structures. This study employs sample of descriptive, analytical, and comparative analyses utilized to discuss a novel framework of Islamic securitization through the different structures of sukuk wakalah derived from asset securitization. The result served to investigate the use of Islamic student financing securitization in a Shariah-compliant manner, which would be implementable in Malaysia. It emphasized the sukuk structures based on the wakeel principle, which indicated a situation where a wakeel or representative appointment was made to manage a project on the behalf of the sukuk holder. The findings of this study supported the economic benefits obtained in the form of lower overall financing costs through the use of securitization for student financing in higher education. This paper offers important implications specifically for the creation of sukuk structures and issuing a highly graded and marketable sukuk, which are compliant towards global Shariah principles. The paper fills the gap perceived within the existing literature of Islamic finance by showing Islamic securitization via sukuk as a viable source of funds potential utilizable in stabilizing the securities market. It can also pose as a solution for securing a sustainable funding.

MIXED-USE PROJECT DEVELOPMENT PROCESS: FEATURES, PITFALLS AND COMPARISONS WITH SINGLE-USE PROJECTS

  • Charles Y.J. Cheah;Kok Sang Tan
    • International conference on construction engineering and project management
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    • 2005.10a
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    • pp.335-340
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    • 2005
  • In many urban cities, mixed-use development is becoming increasingly essential for the creation of an attractive and sustainable environment that promotes economic vitality, social equity and environmental quality. Due to the differences in scale, scope and intent, certain aspects within the project delivery process of mixed-use are not the same as "conventional" single-use projects. The objective of this paper is to highlight these aspects. Two cases in Southeast Asia serve to illustrate the uniqueness and challenges of mixed-use. In conclusion, the differences between mixed-use and single-use are evident in terms of the diversity of team members, the necessity of multiple market analyses, and a multi-layer (versus single-source) financing structure. Finally, issues concerning ownership tangles, land assembly, planning and application procedures, investment criteria of institutions have been identified as major pitfalls.

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How to Reflect Sustainable Development, exemplified by the Equator Principles, in Overseas Investment (해외투자(海外投資)와 지속가능발전 원칙 - 프로젝트 파이낸스의 적도원칙(赤道原則)을 중심으로 -)

  • Park, Whon-Il
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.31
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    • pp.27-56
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    • 2006
  • Today's financial institutions usually take environmental issues seriously into consideration as they could not evade lender liability in an increasing number of cases. On the international scene, a brand-new concept of the "Equator Principles" in the New Millenium has driven more and more international banks to adopt these Principles in project financing. Sustainable development has been a key word in understanding new trends of the governments, financial institutions, corporations and civic groups in the 21st century. The Equator Principles are a set of voluntary environmental and social guidelines for sustainable finance. These Principles commit bank officers to avoid financial support to projects that fail to meet these guidelines. The Principles were conceived in 2002 on an initiative of the International Finance Corporation(IFC), and launched in June 2003. Since then, dozens of major banks, accounting for up to 80 percent of project loan market, have adopted the Principles. Accordingly, the Principles have become the de facto standard for all banks and investors on how to deal with potential social and environmental issues of projects to be financed. Compliance with the Equator Principles facilitates for endorsing banks to participate in the syndicated loan and help them to manage the risks associated with large-scale projects. The Equator Principles call for financial institutions to provide loans to projects under the following circumstances: - The risk of the project is categorized in accordance with internal guidelines based upon the environmental and social screening criteria of the IFC. - For Category A and B projects, borrowers or sponsors are required to conduct a Social and Environmental Assessment, the preparation of which must meet certain requirements and satisfactorily address key social and environmental issues. - The Social and Environmental Assessment report should address baseline social and environmental conditions, requirements under host country laws and regulations, sustainable development, and, as appropriate, IFC's Environmental, Health and Safety Guidelines, etc. - Based on the Social and Environmental Assessment, Equator banks then make agreements with borrowers on how they mitigate, monitor and manage the risks through a Social and Environmental Management System. Compliance with the plan is included in the covenant clause of loan agreements. If the borrower doesn't comply with the agreed terms, the bank will take corrective actions. The Equator Principles are not a mere declaration of cautious banks but a full commitment of lenders. A violation of the Principles in the process of project financing, which led to an unexpected damage to the affected community, would not give rise to any specific legal remedies other than ordinary lawsuits. So it is more effective for banks to ensure consistent implementation of the Principles and to have them take responsible measures to solve social and environmental issues. Public interests have recently mounted up with respect to environmental issues on the occasion of the Supreme Court's decision (2006Du330) on the fiercely debated reclamation project at Saemangeum. The majority Justices said that the expected environmental damages like probable pollution of water and soil were not believed so serious and that the Administration should continue to implement the project seeking ways to make it more environment friendly. In this case, though the Category A Saemangeum Project was carried out by a government agency, the Supreme Court behaved itself as a signal giver to approve or stop the environment-related project like an Equator bank in project financing. At present, there is no Equator bank in Korea in contrast to three big banks in Japan. Also Korean contractors, which are aggressively bidding for Category A-type projects in South East Asia and Mideast, might find themselves in a disadvantageous position because they are generally ignorant of the environmental assessment associated with project financing. In this regard, Korean banks and overseas project contractors should care for the revised Equator Principles and the latest developments in project financing more seriously. It's because its scope has expanded to the capital cost of US$10 million or more across all industry sectors regardless of developing countries or not. It should be noted that, for a Korean bank, being an Equator bank is more or less burdensome in a short-term period, but it must be conducive to minimizing risks and building up good reputation in the long run.

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A Study on the Sensitivity Analysis of the Financial Analysis Item in Apartment Project (공동주택 사업의 수지분석 항목에 대한 민감도 분석에 관한 연구)

  • Kim, Gwang-Ho
    • Korean Journal of Construction Engineering and Management
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    • v.7 no.1 s.29
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    • pp.100-109
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    • 2006
  • Feasibility analysis is a crucial key to success or failure of housing project. Existing feasibility analysis in construction company is based on intuitive approach rather than systematic approach. Usually feasibility analysis in a narrow sense is a financial analysis of project. Feasibility analysis focused in this study is confined to the matter of finance. So, the purpose of this study is to analyze the sensitivity of financial analysis item about profit rate by means of monte carlo simulation and this will improve accuracy of feasibility analysis and decision making.

Systems Thinking Perspective on the Collapse of Savings and Loan Banking System in Korea (저축은행 사태에 대한 시스템 사고적 고찰)

  • Ahn, Nam-Sung
    • Korean System Dynamics Review
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    • v.13 no.1
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    • pp.63-80
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    • 2012
  • This paper is aiming at providing the systems thinking perspective on the collapse of the savings and loan banking system in Korea. Two causal loop diagrams are developed to conduct the analysis: The first is focusing on the structural problems included in the establishment of S&L banking in 1990s. The later is developed based on the project financing mechanism by controlling the credit standard required during the due diligence. The result of this study shows that the main cause of the collapse of the S&L banking is the structural problem connected to real estate market including the failure of regulation.

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A Study on Securing the Funds Liquidity of Construction Phase (건설공사단계의 자금 유동성 확보 방안에 관한 연구)

  • Je, Yeong-Deuk;Lee, Sang-Beom;Song, Ho-San
    • Proceedings of the Korean Institute of Building Construction Conference
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    • 2011.11a
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    • pp.69-70
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    • 2011
  • During the financial crisis in the late 1990s, we witnessed the large corporations failing at one moment. It is clear that the debt-dependant size augmentation and duplicate investment, and the failure in fund liquidity adjustment were the greatest causes rather than the long-term strategic advantage. Such fact, however, has led to the introduction of advanced financial techniques and security/management of fund liquidity. In order to propose a method to secure fund liquidity at the construction level, this study considers the documentational/precedent studies on project financing among fund procurement methods. And the fund liquidity status at construction level is investigated domestically/internationally to analyze the fund flow. Finally, the actual data is used to analyze progress rate and sales rate to end with the proposal of the method to secure fund liquidity in the progression of this study.

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What the GTX and Grand Paris projects can learn from each other

  • Vivant, Emmanuel
    • International Journal of Railway
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    • v.4 no.3
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    • pp.64-69
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    • 2011
  • Paris has one of the world's oldest metropolitan railway systems and was also a pioneer when it introduced the RER in the 70s. With planning objectives comparable to the GTX, the RER aimed at serving outer suburbs while fully crossing the city center at higher speeds than the Metro. Maybe more relevant is the comparison between the planned Grand Paris Express and GTX projects, in terms of their planning ambitions and their development framework. This article will introduce the main planning ideas behind the Metro and the RER in Paris, and try to draw relevant comparisons with the GTX plan. It will also present the plans and financing framework for the Grand Paris Express and compare it with the BTO scheme contemplated for GTX, and draw some recommendations for successful implementation.