Financing renewable energy: La Esperanza Hydroelectric Project

2014 ◽  
Vol 52 (9) ◽  
pp. 1724-1749 ◽  
Author(s):  
Mauricio Jenkins ◽  
Leo Miguel Guevara
Keyword(s):  
Renewable Energy ◽  
Financial Institutions ◽  
Financial Analysis ◽  
Developing Economies ◽  
Financial Institution ◽  
Value Added ◽  
Project Finance ◽  
Content Type ◽  
Investment Projects ◽  
Energy Projects

Purpose – This is a teaching case to be used in courses on funding and execution of renewable-energy projects, sustainable development, project finance or management of financial institutions. The case has been successfully used in courses at the graduate level as well as in executive education. The purpose of this paper is to achieve the following specific objectives. First, to illustrate the adjusted present value (APV) methodology to value investment projects in a project finance setting. Second, to show how APV methodologies can be used to value investment projects with subsidized financing and temporary fiscal incentives. Third, to understand how financial institutions use debt service coverage ratios to measure the capacity of projects to repay debt obligations. Design/methodology/approach – The primary source of information for the study case came from in-depth interviews with senior officials from E+Co and project sponsors. Documents from E+Co's loan approval process and investment committee minutes were also consulted. Also a site visit was performed. Findings – The case is quite interesting along several dimensions. To begin with the case deals with an important (and somewhat difficult decision) the general manager of a financial institution has to make. From a technical point of view, the case involves an APV analysis and requires the estimation of the value added (or destroyed) by several collateral effects of debt in the capital structure of the project (something seldom treated in formal courses or standard finance textbooks). In addition, even though standard financial analysis would probably have led to select on alternative course of action, the authors know the protagonist of the case actually decided to do something different based on an additional analysis (a nice postscript for the case, therefore). Research limitations/implications – Been a case study, the findings may be quite particular of the particular situation and context. However, the case provides good insight into the difficulties and problems entrepreneurs face in developing economies as well as in funding small renewable energy projects around the world. Practical implications – The case provides a number of important lessons and learning opportunities for sponsors of renewable energy power projects and managers of financial institutions. Originality/value – Please refer to the findings section above.

Corporate governance and the social performance: investigation on Tunisian financial institutions

2018 ◽  
Vol 60 (6) ◽  
pp. 1412-1431
Author(s):  
Nejia Nekaa ◽  
Sami Boudabbous
Keyword(s):  
Corporate Governance ◽  
Financial Institutions ◽  
Financial Institution ◽  
Stock Exchange ◽  
Social Performance ◽  
Financial Sector ◽  
Content Type ◽  
The Social ◽  
Questionnaire Method ◽  
The Impact

Purpose The purpose of this study is to show the specificities of the corporate governance of Tunisian financial institutions and the impact of the internal mechanisms of corporate governance of these institutions on their social performance. It is therefore interesting to establish the existing relationship between these mechanisms of corporate governance and the performance of a financial firm. Design/methodology/approach This study aims to study the financial sector, generally characterized by its opacity, its regulation, its evolution and its obscurity. Therefore, a study based on the questionnaire method was recommended. The questionnaire is intended for managers. Therefore, the authors interviewed 138 managers of Tunisian financial institutions dispersed between agencies and headquarters in different regions (Gabes, Tozeur, Gafsa, Sfax, Sousse and Tunisia). Findings As a result, an impact on performance was observed according to the empirical study. Therefore, the authors can conclude an essential role of internal mechanisms for improving the social performance of a financial institution. The empirical findings in this paper lead to important conclusions. Indeed, the variables measuring the governance mechanisms have divergent effects on the social performance of the financial institutions subject to the sample. For the variables board of directors, confidence, culture, auditing, they have a positive effect. While, the incentive remuneration effect negatively the social performance. Originality/value This study will be based essentially on the financial sector in Tunisia: the credit institutions (22 banks), the establishments of leasing (eight companies of leasing), two factoring companies and two banks of cases which are listed on the Stock Exchange of Tunis (BVMT).

scholarly journals Balanced Scorecard-Based Evaluation of Sustainable Energy Investment Projects with IT2 Fuzzy Hybrid Decision Making Approach

Energies ◽  
2019 ◽  
Vol 13 (1) ◽  
pp. 82 ◽  
Author(s):  
Pengran Zhou ◽  
Pengfei Zhou ◽  
Serhat Yüksel ◽  
Hasan Dinçer ◽  
Gülsüm Sena Uluer
Keyword(s):  
Financial Institutions ◽  
Balanced Scorecard ◽  
Large Scale ◽  
Fuzzy Dematel ◽  
Energy Investment ◽  
The Balanced Scorecard ◽  
Investment Projects ◽  
Energy Projects ◽  
Interval Type ◽  
Energy Companies

The purpose of this study is to determine the issues that financial institutions should pay attention to in their decision to provide financing to large scale energy projects. Within this framework, taking into account the Balanced Scorecard (BSC) approach, 4 dimensions and 8 criteria that can be effective in these decisions of financial institutions were determined. After that, the importance weights of these dimensions and criteria were determined by interval type-2 (IT2) fuzzy DEMATEL method. In addition, 3 different types of banks (public, private, foreign) are listed for their performance in financing energy projects. According to the results of the analysis, the technological and financial adequacy of the company that will invest in energy is the issue that financial institutions should pay the most attention to in their credit decision. Therefore, it is important for financial institutions to visit the customer's location and pay attention to the technological adequacy in the process of evaluating the customer's demand for credit for a large-scale energy project. In addition, it would be appropriate not to provide this fund to the energy companies with high indebtedness and insufficient liquidity. Another result of the study is that state banks have the lowest performance in financing these large-scale energy projects. When this result is taken into consideration, state banks need to pay more attention in evaluating large-scale energy projects in order to avoid major losses.

scholarly journals KELAYAKAN FINANSIAL UNIT USAHA PENANGKAPAN MULTIGEAR (JARING RAMPUS DAN JARING UDANG) DI PELABUHAN PERIKANAN PANTAI TAWANG KABUPATEN KENDAL (Financial Analysis of Multigear Fishing Bussiness In Tawang Fishing Port, Kendal Regency)

2017 ◽  
Vol 12 (2) ◽  
pp. 124
Author(s):  
Nova Puspita Rini ◽  
Trisnani Dwi Hapsari ◽  
Sardiyatmo Sardiyatmo
Keyword(s):  
Discount Rate ◽  
Financial Institutions ◽  
Calculation Result ◽  
Financial Analysis ◽  
Financial Institution ◽  
White Shrimp ◽  
Fishing Gear ◽  
Business Investment ◽  
Client System

ABSTRAK Peningkatan jumlah alat tangkap multigear (jaring rampus dan jaring udang) berbanding terbalik dengan  penurunan jumlah produksi hasil tangkapan utamanya yaitu, ikan  Kembung dan Udang Putih sejak tahun 2014 hingga tahun 2015. Sulitnya pembiayaan investasi dan pengembangan usaha penangkapan multigear di Pelabuhan Perikanan Pantai Tawang membuat sebagian besar Nelayan terikat pada sistem ijon (Patron-Klien), sehingga menyebabkan penerimaan Nelayan tidak maksimal karena harga jual yang ditetapkan rendah dari pihak Bakul (Patron) selaku pemberi pinjaman modal. Untuk itu, perlu adanya analisis finansial apabila Nelayan tidak terikat sistem ijon.Berdasarkan permasalahan tersebut, tujuan dari penelitian ini adalah, menganalisis kelayakan finansial untuk mengatahui apakah hingga saat ini usaha penangkapan multigear terikat sistem ijon masih layak untuk dilanjutkan, serta menganalisis bagaimana kelayakan finansial usaha apabila Nelayan tidak terikat sistem ijon.Hasil perhitungan analisis finansial usaha penangkapan multigear terikat sistem ijon discount rate 5%  ialah, R/C ratio 1,79, PP 3,112, NPV Rp. 340.654.823,79., Net Net B/C ratio 1,41 dan IRR 13,26%. Sedangkan, hasil  analisis finansial usaha penangkapan multigear memanfaatkan lembaga keuangan  discount rate  9% ialah, R/C ratio 1,99, PP2,388, , NPVRp. 384.956.100,17., Net Net B/C ratio3,50 dan  IRR 50,10% Berdasarkan nilai-nilai tersebut usaha penangkapan multigear terikat sistem ijon masih layak untuk dilanjutkan, namun usaha ini akan lebih layak untuk dijalankan apabila memanfaatkan lembaga keuangan. Kata kunci: Analisis Finansial; Penangkapan Multigear; PPP Tawang  ABSTRACT The increasing number of using multi-fishing gear (rampus net and trammel net) was inversely with the amount of decreasing production of each target catch, these were long jowed mackerel (restrelliger sp.) and white shrimp (paneaus sp.), since 2014 till 2015.  The difficulty of financial and development business investment arrest multi-fishing gear makes most of the fishermen attached to small seller ( patron-client system).  This condition makes fisherman couldn’t get maximum revenue cause of the selling low price from small seller as the Lender of Capital. Based on these problems, the aims of it research are,  analysis the feasibility financial to find out weather till today its business still feasible to continue, and how is the analysis business feasibility if the fishermen not bound  to ijon system (patron-client).The calculation result of financial analysis multi-fishing gear business bound to ijon system by discount rate 5% are, R/C ratio 1,79, PP 3,112, NPV Rp. 340.654.823,79.,, Net Net B/C ratio 1,41, and  IRR 13,26%. Whereas, the result of financial analysis multi-fishing gear business use financial institution discount rate 9% are, R/C ratio 1,99, PP2,388, , NPVRp.384.956.100,17.,  Net Net B/C ratio3,50 and  IRR 50,10%. According to those values multi-fishing gear business that bound to ijon sytem is still feasible to continue, But this business will be recognised to run better when use financial institutions. Keywords: Financial Analysis, Multi-Fishing Gear, PPP Tawang 

A practical process mining approach for compliance management

2019 ◽  
Vol 27 (4) ◽  
pp. 464-478
Author(s):  
Michael Becker ◽  
Rüdiger Buchkremer
Keyword(s):  
Risk Management ◽  
Financial Institutions ◽  
Data Privacy ◽  
Process Mining ◽  
Financial Institution ◽  
Real Life ◽  
Practical Implementation ◽  
Process Data ◽  
Content Type ◽  
Compliance Management

Purpose The purpose of this study is to examine whether the compliance management activities in the risk management environment of financial institutions can be enhanced using a Process Mining application. Design/methodology/approach In this research, an implementation procedure for a selected Process Mining application is developed and evaluated at a financial institution in Germany. Findings The evaluation of the process data with the Process Mining application Disco shows that the compliance of the real-life execution of business processes can be monitored in real-time. Moreover, potential non-compliant activities and durations can be analysed in a detailed manner. Research limitations/implications When the research results are regarded, it must be considered that a general condition for the usage of a Process Mining application is that the process data is available and exportable in the required format and that data privacy regulations are fulfilled. Originality/value This research presents a practical use case for the implementation of a Process Mining application at the risk management department of financial institutions. It shows the value of using a technical application to carry out tedious tasks that are usually executed manually. This value is discussed and compared with the aim to help financial institutions in determining how the effectiveness and efficiencies of compliance management activities can be improved. Therefore, this research can be taken as a foundation for the practical implementation of a Process Mining application at financial institutions.

scholarly journals Financing renewable energy projects in the Dominican Republic: an empirical study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Angelines Daihana Donastorg ◽  
Suresh Renukappa ◽  
Subashini Suresh
Keyword(s):  
Developing Countries ◽  
Renewable Energy ◽  
Empirical Study ◽  
Dominican Republic ◽  
Clean Energy ◽  
Primary Data ◽  
Unique Challenge ◽  
Content Type ◽  
Energy Projects ◽  
Financial Aspect

Purpose Currently, renewable energy (RE) sources represent a crucial pillar in obtaining sustainable development, one of the global goals for all countries. However, this presents a unique challenge for emerging and developing countries. As the technical and financial issues remain a significant barrier in implementing RE projects, several mechanisms are available to aid the financial aspect of investing and implementing clean energy projects. This paper aims to discuss new and traditional trends in the financial area of renewable investment, focusing on the Dominican Republic (DR), identifying the gaps in the financial area regarding RE. Design/methodology/approach An empirical study was conducted in the DR. This country is located at the heart of the Caribbean. Given the complexity of RE and developing countries issues and the scarcity of comparable research in the area, an interpretivist research paradigm along with the qualitative methodology was adopted. Primary data was collected through semi-structured interviews. The study sample includes: directors, chief executive officers and managers responsible for the implementation of RE strategies in their respective departments/organisations. NVivo software was used for data management and the collected data was analysed using content analysis. Findings The research highlighted several severe financial handicaps regarding RE in the DR: The lack of RE assets recognition; lack of RE investment loans; perceived RE risk; and lack of financial guarantor. After extensive interviews with critical actors in the RE sector in the DR, the possible solutions and recommendations for avoiding locking the energy and economic sector in fossil fuel debt are: (a) diversification of RE technology assets recognition, (b) implementation of government RE fund, (c) RE education on all actors and (d) introduction and adoption of new financial trends such as green bonds, bank pooling, cooperatives and more. Originality/value This paper provides information and knowledge related to financial tools and policies that are available for the RE projects in the DR. The results have a socio-economic impact. This research provides a better understanding of the key financial tools to be explored by RE project developers in the developing countries. This study shows the gaps that exist between the knowledge that the stakeholders should possess and the actual knowledge that exists in the country regarding the financial aspect of an RE project.

Maghreb countries will bolster renewable energy sector

2018 ◽  
Keyword(s):  
Renewable Energy ◽  
North Africa ◽  
Energy Security ◽  
Oil And Gas ◽  
Solar Power ◽  
Sub Saharan Africa ◽  
Domestic Consumption ◽  
Content Type ◽  
Energy Projects ◽  
Sub Saharan

Subject Renewable energy projects in North Africa. Significance Tunisia prequalified 16 groups in November to bid for contracts to build and operate a total of 500 megawatts of solar power. The Tunisian scheme will add to a rapidly growing set of solar power projects across North Africa. Morocco has led the way, but Egypt is poised to become the largest solar power producer in the region. Algeria has ambitious plans but has been slow to put them into practice. Impacts In Algeria and Egypt, solar power will slow domestic consumption of oil and gas and maximise exports. In Morocco, which relies heavily on imported fuel, solar power will enhance energy security. North Africa may contribute to lowering CO2 emissions by becoming a major exporter of renewable energy to Europe and Sub-Saharan Africa.

Nexus between customer preference and operation of conventional banks Islamic windows in Pakistan

2019 ◽  
Vol 11 (1) ◽  
pp. 50-65 ◽  
Author(s):  
Malik Shahzad Shabbir
Keyword(s):  
Social Sciences ◽  
Financial Institutions ◽  
Design Methodology ◽  
Financial Institution ◽  
Banking System ◽  
Customer Behavior ◽  
Content Type ◽  
Customer Preference ◽  
Conventional Banks ◽  
Almost All

Purpose The purpose of this study is to investigate the nexus between preferences of customers toward operations of Islamic windows from conventional banks. However, financial institution system of any country has a dominant importance for its growth level. This study makes a comparative analysis and nexus among Islamic windows of conventional banks, Islamic and conventional banks. Design/methodology/approach A well-designed questionnaire has been made and distributed among three types of bank customers to get their perception and preference regarding services qualities and operations from all three types of financial institutions. This study used statistical package of social sciences software for data analysis. Findings The results revealed that customers from Islamic windows have serious dispute on its Shariah-compliant regulation and fifty one per cent (51 per cent) of customer did not trust on the member of Shariah board. The mid age of customers preferred the services of Islamic windows, as it has multi-dimensional options for customers. Finally, customers from almost all three types prestigious that technology has found a significant impact for better service qualities and found a positive change in customer behavior. Originality/value This study is a first ever attempt in its nature to investigate that the customer’s preferences and different operations exist in three types of banking system in Pakistan. This study also helps to policymakers regarding customer needs and wants to provide better services.

Infrastructure investment projects: financing and management mechanisms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tatiana Yurieva ◽  
Liudmila Voropaeva ◽  
Maria Beliakova ◽  
Natalia Adamchuk
Keyword(s):  
Integrated Management ◽  
Practical Significance ◽  
Project Finance ◽  
Management Approach ◽  
Conceptual Approach ◽  
Content Type ◽  
Investment Projects ◽  
Spatial Asymmetry ◽  
Infrastructure Design ◽  
High Level

Purpose This paper analyses the modern market for project finance, its sectorial structure and main development trends. This study aims to form a constructive diagnostic toolkit for investment support of infrastructure design in regions, taking into account spatial asymmetry in the context of an integrated management approach. Design/methodology/approach When analyzing the public–private partnership (PPP) project performance, it is reasonable to distinguish the following two levels of discount rates: state and private. To achieve a high level of development of the general infrastructure of a region, a conceptual approach to the formation of investment support for the development of regional infrastructure has been developed. Findings The scientific contribution of this study is to improve the approach to modeling investment support for regional infrastructure design in the context of spatial asymmetry. Implementation of infrastructure projects creates prerequisites for sustainable economic growth, improvement in business and investment and social attractiveness of the national economy and its regions. Practical implications The practical significance of this study is that its main provisions allow for an effective regional socio-economic policy, based on the systemic development of regional infrastructure and aim at boosting competitiveness. Originality/value Recommendations can be used by regional and local authorities to formulate a socio-economic strategy for regional development as well as by representatives of private business who intend to engage in regional PPP projects.

scholarly journals The art of deterrence: Singapore’s anti-money laundering regimes

2018 ◽  
Vol 25 (2) ◽  
pp. 467-498
Author(s):  
Veltrice Tan
Keyword(s):  
Money Laundering ◽  
Financial Institutions ◽  
Financial Institution ◽  
Deterrent Effect ◽  
Limited Data ◽  
Content Type ◽  
Effective Deterrent ◽  
State Of Affairs ◽  
The Relationship ◽  
Practical Implications

Purpose In light of the recent 1MDB Scandal in Singapore, this research paper aims to examine the deterrent effect of Singapore’s sanctions against money laundering within financial institutions. Design/methodology/approach Case laws and legislations are examined as are relevant reports by regulators. Findings Singapore’s anti-money laundering (AML) regimes may not act as an effective deterrent against money laundering activities within financial institutions. This is due to the overreliance on the theory of deterrence-based thinking, the lack of an “enforcement pyramid” and economic factors which influence regulators to be lenient towards financial institutions. Research limitations/implications There are limited data available in relation to regulators in Singapore and the prevalence of money laundering activities within Singapore’s financial institution. Any discussions within this article is based on the impressionistic observations of this author, which may not reflect the true state of affairs in Singapore. Practical implications Those who are interested in examining the relationship between money laundering and the deterrent effect of sanctions against financial institutions will have an interest in this topic. Originality/value The value of the paper is to demonstrate that Singapore’s AML regimes may not act as an effective deterrence against money laundering activities within financial institutions.

Regulatory relationships and incentives: from Riggs Bank to HSBC

2017 ◽  
Vol 59 (5) ◽  
pp. 729-739 ◽  
Author(s):  
Patrick John O’Sullivan
Keyword(s):  
United States ◽  
Financial Institutions ◽  
Banking Sector ◽  
Financial Institution ◽  
Academic Research ◽  
Regulatory Relationship ◽  
Content Type ◽  
The Usa ◽  
The One ◽  
The Relationship

Purpose The aim of the paper is to examine what type of relationship existed between the Office of the Comptroller of the Currency (OCC) and Riggs Bank in respect of anti-money laundering (AML) compliance. Different commentators have established certain trends in the interaction between a regulator and a regulated entity, and this paper seeks to apply these findings to the relationship between the OCC and Riggs Bank and ascertain where this example lies in the wider domain of regulatory relationships. The paper then examines whether the relationship between the OCC and HSBC United States was similar to the one between the OCC and Riggs Bank or did the regulator adopt a more aggressive supervisory stance. Throughout this work, there is also a focus on the underlying incentives which may adversely affect how a financial institution interacts with a financial regulator and possible solutions to this problem proposed. Design/methodology/approach Research undertaken by commentators was assessed and their findings as the different regulatory relationships that may develop between a regulator and a regulated entity were applied to the interactions between the OCC and two different financial institutions, namely, Riggs Bank and HSBC United States. Examples from the Senate Subcommittee Reports into the AML failings into these financial institutions were examined through the prism of pre-existing regulatory relationship categories. Findings The paper ultimately concludes that the OCC was far too passive in its interactions with both Riggs Bank and HSBC United States and that the primary underlying motivations for both institutions were profit- rather than compliance-led. Research limitations/implications One of the main limitations to this research was the absence of direct input from either personnel from the banking sector in the USA or of regulators from the same jurisdiction. Practical implications This paper proposes a number of practical solutions to recast the relationship between financial regulators and regulated institutions away from the former deferring to the latter to one where the former dictates to the latter. Originality/value This paper seeks to examine an actual regulatory relationship between a financial regulator and two different institutions that is reported in the public domain by applying pre-existing academic research on question of regulatory relationships and see how the practice differs or corresponds with the theory.

Sign in / Sign up

Export Citation Format

Share Document