scholarly journals Optimizing Risk Allocation in Public-Private Partnership Projects by Project Finance Contracts. The Case of Put-or-Pay Contract for Stranded Posidonia Disposal in the Municipality of Bari

2020 ◽  
Vol 12 (3) ◽  
pp. 806 ◽  
Author(s):  
Antonella Lomoro ◽  
Giorgio Mossa ◽  
Roberta Pellegrino ◽  
Luigi Ranieri
Keyword(s):  
Real Option ◽  
Public Support ◽  
Treatment Plant ◽  
Cash Flows ◽  
Public Private Partnership ◽  
Project Finance ◽  
Risk Allocation ◽  
Private Partnership ◽  
Put Options ◽  
The Impact

This paper investigates the impact of the adoption of public support on the performance of public–private partnership (PPP) projects as perceived and measured by the different actors involved. In particular, the public support investigated by this study is put-or pay contracts, which are often used in PPP projects financed through project finance to optimize risk allocation. In order to quantify the benefit gained by each party with and without the put-or-pay contract, cash flows of the project have been modeled by using the concept of real option, defined as the right without the obligation to make an action if it is convenient to do so. This concept enabled us to model and quantify the inner flexibility mechanism of put-or-pay contracts. With a put-or-pay agreement signed between the municipality, a (private) owner, and operator of a disposal facility, the owner of the facility has the faculty, without any obligation, to require the payment of penalty, if the municipality fails to meet its obligations. This means that the owner of the facility holds a series of European put options that can be exercised if it is convenient for the holder. The developed model has been used for studying the effectiveness of put-or-pay contracts for financing the treatment plant of a special dispose through project finance, i.e., the plant for disposal of marine plant posidonia.

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

2018 ◽  
Keyword(s):  
Cash Flows ◽  
Project Finance ◽  
Cost Of Debt ◽  
Risk Allocation ◽  
Debt Overhang ◽  
Balance Sheets ◽  
Infrastructure Project ◽  
Bankruptcy Code ◽  
The Cost ◽  
Future Cash Flows

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.

Lex PPPs as a source of regulation of cross-border relations in the sphere of public-private partnership and the role of international organizations in formation of Lex PPPs

2021 ◽  
pp. 1-10
Author(s):  
Svetlana Valentinovna Maslova
Keyword(s):  
International Organizations ◽  
Private Investment ◽  
Legal Regulation ◽  
Public Private Partnership ◽  
Legal Doctrine ◽  
Private Partnership ◽  
Cross Border ◽  
State Actors ◽  
The Impact

Modern international and cross-border relations in the sphere of public-private partnership (PPP) undergo transformations caused by globalization processes, which leads to the amendments in their legal regulation. The impact of non-state actors increases. Although the toolset for influencing cross-border relations in the sphere of PPP retains its legal core, it is being extended by the rules established by non-state actors outside the international and national legal systems, and carry no legal weight. For PPP as a form of interaction between the state and private investment and business structures, such transformations are particularly noticeable and require precise legal qualification. The scientific novelty of this research consists in providing definition in the international legal doctrine to Lex PPPs as the regulator of cross-border relations in the sphere of public-private partnership. Based on the dialectical, logical, and formal-legal methods, assessment is given to the role of international organizations in the formation of Lex PPPs. In conclusion, the author clarifies the role of Lex PPPs within the system of regulators of public-private partnership, namely that it should not expel the legal regulation of cross-border relations in the sphere of public-private partnership; as well as offers to seek for the new forms of correlation between international law and Lex PPPs and their consolidation through the international legal regulation of public-private partnership.

scholarly journals Sustainable and Optimal “Uniqueness” Contract in Public-Private Partnership Projects of Transportation Infrastructure

2020 ◽  
Vol 2020 ◽  
pp. 1-14
Author(s):  
Yingjun Zhu ◽  
Zhitong Gao ◽  
Ruihai Li
Keyword(s):  
Social Welfare ◽  
Public Private Partnership ◽  
Transportation Infrastructure ◽  
Private Capital ◽  
Equilibrium Relation ◽  
Private Partnership ◽  
The Public ◽  
Welfare Losses ◽  
The Government ◽  
The Impact

To control the “uniqueness” risk in Public-Private Partnership (PPP) projects of transportation infrastructure, we design a simplified “uniqueness” contract model by incorporating the impact of the initial investment which is based on the Bertrand model. The nonlinear programming method is adopted to derive the optimal “uniqueness” contracts for incumbent private capital, the public, and the social welfare, respectively. The simulation results show that the achievement of the optimal “uniqueness” contract is essentially the result of a compromise between the private capital, the public, and social welfare. The extent to which such a contract reduces the probability of “uniqueness” risk mainly depends on the equilibrium relation between the interests of private capital and the public. The initial investment is not related to the government default when the contract does not take into account the interests of the private capital. Furthermore, the “uniqueness” contracts between private capital and the government are mainly for anticompetitive purpose in the PPP market of transportation infrastructure. Unless the contract terms focus on the improvement of social welfare, entering a “uniqueness” contract will cause social welfare losses.

scholarly journals Nutritional Iron Deficiency and Malaria: Impact of a Public-Private Partnership

2020 ◽  
Vol 4 (Supplement_2) ◽  
pp. 837-837
Author(s):  
Patricia Haggerty ◽  
Daniel Raiten
Keyword(s):  
Iron Deficiency ◽  
Public Private Partnership ◽  
Lessons Learned ◽  
The Novel ◽  
Private Partnership ◽  
Funding Sources ◽  
Novel Approach ◽  
Research Track ◽  
Gates Foundation ◽  
The Impact

Abstract Objectives Background: In 2007 the Bill and Melinda Gates Foundation (BMGF) and the Eunice Kennedy Shriver National Institute of Child Health and Human Development (NICHD) collaborated to address concerns about the safety and efficacy of interventions to prevent and treat nutritional iron deficiency (NID) particularly in the context of malaria. The “Iron and Malaria Project” (IMP) addressed how iron might not be safe, iron assessment, and the value of interventions to address NID. This presentation will: Describe the novel approach used to achieve the IMP goals, describe the IMP accomplishments and impacts, and summarize lessons learned. Methods The IMP had: 1) Research Track: NICHD initiated 2 funding opportunity announcements resulting in 10 funded projects; 2) Translation Track: a) consultations with global stakeholders; b) risk: benefit analyses on the use of interventions to prevent and treat NID; c) a collaboration with the CDC to develop standards for a sTfR assay; d) the BOND project to harmonize the process for discovery, development and deployment of nutrient biomarkers; e) the INSPIRE project, a review of extant evidence on reciprocal relationships between nutrition and inflammation; and f) the BRINDA project, a collaboration with the CDC, GAIN, and WHO to study the impact of inflammation on interpretation of biomarkers of iron and other determinants of anemia and develop approaches to account for this interaction. Results Funded grants included 4 basic science projects exploring mechanisms to explain iron and malaria interactions and 6 clinical studies addressing various aspects of the iron malaria relationship. To date, 72 journal publications have resulted. Using the NIH Relative Citation Ratio metric, 2/3 have scientific influence scores ≥the 50th percentile of all NIH-funded research publications and 15 have scores ≥ the 90th percentile. Conclusions The IMP leveraged the attributes of this public-private partnership between BMGF and NICHD/NIH to accomplish its goals. The partnership's complementarity and synergy resulted in broad traction and collaboration with a global community invested in solving the challenges of iron and malaria. Funding Sources BMGF $9.3 million, NIH Office of Dietary Supplements $1.3 million.

scholarly journals The impact of huge transport PPP projects on Russian Federation socio-economic development

2018 ◽  
Vol 170 ◽  
pp. 05002 ◽  
Author(s):  
Alisa Sablina ◽  
Viktor Dubolazov
Keyword(s):  
Economic Development ◽  
Data Analysis ◽  
Russian Federation ◽  
Public Private Partnership ◽  
Transport Infrastructure ◽  
Federal State ◽  
Private Partnership ◽  
Service Information ◽  
Socio Economic Development ◽  
The Impact

This article describes the main impact peculiarities of huge transport projects implemented by public-private partnership on Russian Federation socio - economic development. The research was based on the deep data analysis of changing socio-economic indicators of six different Russian regions (including regions of different federal districts), where were implemented (or are being implemented) of huge transport infrastructure projects, implemented by public-private partnership over the past 10 years. The method of statistical data analysis, obtained in the research, was conduct by using STATISTICA software package, Federal state statistics service information and Public-private partnership platform of infrastructural projects in Russian Federation.

Sign in / Sign up

Export Citation Format

Share Document