Mitigating Legal Risks in Nigeria's Project Finance Market

2017 ◽  
Vol 25 (3) ◽  
pp. 442-455
Author(s):  
Olufemi Soyeju
Keyword(s):  
Debt Financing ◽  
Project Finance ◽  
Infrastructure Development ◽  
Public Infrastructure ◽  
The Public ◽  
Fund Development ◽  
Legal Risks ◽  
Project Risks ◽  
Infrastructure Project

Project finance is a subset of financial techniques used traditionally in raising long-term debt financing for projects particularly in the energy and mining sectors of the economy. However, over the years, it has proved helpful in raising the required funds to drive public infrastructure projects through the public private partnership framework. By its nature, project finance is either non-recourse, or of limited recourse, to the project sponsors and hence identifying the various risks and determining who should bear these risks is the overarching essence of project finance technique. These uncertainty and risks may have significant impact on outturn costs or benefits of a particular infrastructure project. Generally, typical project finance transaction is fraught with many project risks which sometimes overlap. However, among these inherent risks there are some that are legal in nature and hence they are referred to as legal risks. So, this article seeks to interrogate the related legal risks in project finance as a financing technique to fund development of infrastructure and in particular, the procurement of critical public infrastructure assets in Nigeria and the various ways by which these risks can be mitigated to drive infrastructure development in the country.

The Role of Innovation Capital on the Public Infrastructure Project Performance in UAE

2021 ◽  
Vol 39 (10) ◽  
Author(s):  
Sulayem Saleh Musallam Saeed Almuharrami ◽  
Norhidayah Binti Mohamad
Keyword(s):  
Performance Improvement ◽  
United Arab Emirates ◽  
Project Performance ◽  
Primary Data ◽  
Public Infrastructure ◽  
The Public ◽  
Infrastructure Project ◽  
The Impact ◽  
Innovation Capital

UAE is one of the leading countries in the Middle East that has achieved a rapid growth in its economy over the last decades. In a few years, the UAE has built several infrastructure projects, which reflects the state trends towards improving the provided services to the public. The aim of this paper is to investigate the impact of innovation capital on the infrastructure project performance in the United Arab Emirates. This study used a quantitative method design. The population of this study comprised all unlisted infrastructure company providers within the UAE, while the sample was 293 employees from these companies. This study relies on the primary data measurements; the questionnaire instrument was used. The current study has found that there is a positive and significant relationship between innovation capital and infrastructure project performance improvement.

Government Green Procurement in Sustainable Infrastructure Development

2021 ◽  
Vol 15 (S1) ◽  
pp. 7-17
Author(s):  
Melissa Chan ◽  
Md Asrul Nasid Masrom ◽  
Ahmad Shahidi Shamsul Bahrin
Keyword(s):  
Environmental Concern ◽  
Action Plan ◽  
Infrastructure Development ◽  
Public Infrastructure ◽  
Sustainable Infrastructure ◽  
Green Procurement ◽  
Project Outcome ◽  
Content Analysis Method ◽  
Infrastructure Project ◽  
Considerable Impact

Infrastructure development is becoming more significant to an economic growth in many countries. A systematic delivery system regardless by traditional or non-traditional procurement methods is a common condition which has considerable impact on project outcome. In recent times, Government Green Procurement (GGP) has received a great attention among stakeholders in procuring products, services and construction works, particularly in public sector. In developing countries such as Malaysia, GGP have been beneficial by enhancing environmental concern to conserve natural resources, however, the evidence in terms of its implementation is still undiscovered. Due to this deficiency, this paper aims to determine the significant attributes of GGP, and to address the significant strategies of GGP in infrastructure project development. Exploratory study was conducted by reviewing literatures extensively and followed with expert interviews. Content analysis method was used to analyse the data. The results reveal that environmental is to be likely the most significant attributes of GGP, meanwhile, GGP Long-Term Action Plan (LTAP) is seemed to be the most important strategy used in promoting green procurement. This paper provides new insights to the literature in relation to green practice strategies and it is potentially to be useful for the stakeholders in prioritizing further efforts of green-oriented public infrastructure development in the future.

PRIVATE PREDICTION MARKETS AND THE LAW

2012 ◽  
Vol 3 (1) ◽  
pp. 89-110 ◽  
Author(s):  
Tom Bell
Keyword(s):  
Prediction Markets ◽  
Management Decisions ◽  
Prediction Market ◽  
The Public ◽  
Legal Risks ◽  
Federal Laws ◽  
The Law ◽  
Considerable Benefit

This paper analyses the legality of private prediction markets under U.S. law, describing both the legal risks they raise and how to manage those risks.  As the label "private" suggests, such markets offer trading not to the public but rather only to members of a particular firm.  The use of private prediction markets has grown in recent years because they can efficiently collect and quantify information that firms find useful in making management decisions.  Along with that considerable benefit, however, comes a worrisome cost:  the risk that running a private prediction market might violate U.S. state or federal laws.  The ends and means of private prediction markets differ materially from those of futures, securities, or gambling markets.  Laws written for those latter three institutions nonetheless threaten to limit or even outlaw private prediction markets.  As the paper details, however, careful legal engineering can protect private prediction markets from violating U.S. laws or suffering crushing regulatory burdens.  The paper concludes with a prediction about the likely form of potential CFTC regulations and a long-term strategy for ensuring the success of private prediction markets under U.S. law.

scholarly journals The extent of debt financing within state-owned corporations in Kenya

2015 ◽  
Vol 12 (4) ◽  
pp. 895-905 ◽  
Author(s):  
Micah Odhiambo Nyamita ◽  
Nirmala Dorasamy ◽  
Hari Lall Garbharran
Keyword(s):  
Public Sector ◽  
Stock Market ◽  
Agency Theory ◽  
The State ◽  
Debt Financing ◽  
Descriptive Statistics ◽  
Cross Sectional ◽  
The Public ◽  
Public Sector Reforms

The public sector reforms’ programme in Kenya, has witnessed five state-owned corporations being privatised, and several more, from hotels to banks, have been scheduled to be privatised. However, many of Kenya’s state-owned corporations are in considerable debt, which reduce their value in the process of privatisation. This study attempted to determine the extent and the theory suitable for explaining debt-financing within the state-owned corporations in Kenya from 2007 to 2011. The study applied both descriptive statistics and a hybrid of cross sectional and longitudinal quantitative surveys. The results observed some level of stability on the aggregate long-term debt ratios, with minimal use of stock market instruments, which implied the application of the agency theory.

scholarly journals The Risks of Investments in Transport Infrastructure Projects

10.14311/308 ◽  
2002 ◽  
Vol 42 (1) ◽  
Author(s):  
O. Pokorná ◽  
D. Mocková
Keyword(s):  
Investment Decisions ◽  
Transport Infrastructure ◽  
Infrastructure Development ◽  
Infrastructure Projects ◽  
The Public ◽  
Depth Analysis ◽  
Project Risks ◽  
Private Entity ◽  
Financial Impacts ◽  
The Given

Investment decisions should not be taken without an in-depth analysis of the risks. This is an important stage in project preparation and should be performed simultaneously with the planning of the financial operations. Infrastructure development requires that project risks and responsibilities be assigned to the public or private entity that is best able to manage them. The risks and their financial impacts are usually not quantified equally by all parties. Each party views the given risks according to the guarantees provided. These guarantees are related to the form of participation in the project.

scholarly journals Relative Importance of Risks in Hydropower Projects and Project Finance in Nepal

2021 ◽  
Vol 8 (1) ◽  
pp. 1-21
Author(s):  
Achyut Nepal ◽  
Vishnu Khanal ◽  
Ruhanita Maelah
Keyword(s):  
Project Finance ◽  
Internal Source ◽  
Infrastructure Development ◽  
Relative Importance ◽  
Local Revenue ◽  
Legal Risks ◽  
Currency Mismatch ◽  
The Government ◽  
Exchange Rate Changes ◽  
Political Turmoil

Hydropower is the sole internal source of electricity in Nepal. Since the government policy of private participation in hydropower sector launched, Independent Power Producers (IPPs) have gained significant presence under Public-Private Partnership (PPP) model of infrastructure development.  Risk management is crucial in PPP projects as mishandling of any risk threatens sustainability and may result in project failure. This study analyses four major risks including Hydropower Sector Specific Risks, Project Finance Specific Risks, Hydropower Project Financing Risks and Country Specific Political and Legal Risks. Self-administrative survey utilizing questionnaire was conducted among the IPPs and domestic Banking and Financial Institutions (BFIs). Relative Importance Indices have been used to determine the importance of each risk item. Exchange rate changes, currency mismatch between local revenue and foreign loan, cost and time overrun, inflation, political turmoil and highly volatile political environment are few of the most critical risks found. For Project Finance proper allocation of risks among the stakeholders is crucial to make the projects bankable. Findings from this study indicate no risk should be neglected and relative importance of risks is critical in allocating risks among stakeholders. This study highlights assessment and the use of RII in the process of allocation and management of risks in infrastructure projects in general and hydropower in particular.

Sustainable Infrastructures

2020 ◽  
pp. 565-584
Author(s):  
Amir Manzoor
Keyword(s):  
Waste Disposal ◽  
Infrastructure Development ◽  
Public Infrastructure ◽  
Policy Makers ◽  
Infrastructure Systems ◽  
Current State ◽  
Long Term Consequences ◽  
Infrastructure Investments ◽  
Energy Transportation

Infrastructure investments can have long term consequences for the economy and environment of a country. Some notable public infrastructure projects include energy, transportation, water, and waste disposal systems. There are strong financial, environmental, and social change drivers that are forcing immediate changes. We need to rethink our infrastructure investments and develop sustainable, resilient, and affordable infrastructure systems for vital services of our society. These systems will be able to support the healthy and prosperous communities in future. The objective of this chapter is to review the current state of sustainable infrastructures and provide suggestions to policy makers responsible for infrastructure development how to develop sustainable infrastructures.

scholarly journals The role of foreign investment in U.S. infrastructure: opportunities and challenges ahead

2020 ◽  
Vol 9 (3) ◽  
pp. 157-166
Author(s):  
Iordanis Petsas ◽  
Sofia M Vidalis
Keyword(s):  
Infrastructure Investment ◽  
Public Infrastructure ◽  
Sovereign Wealth Funds ◽  
The Public ◽  
New Construction ◽  
Useful Life ◽  
American Society ◽  
The U.S

The U.S. infrastructure has been issued a grade of D+ from the American Society of Civil Engineers because of the low funding for new construction, maintenance, and repair. It is now reaching the end of its useful life and cost estimates have reached as high as $3.6-trillion. The public infrastructure investment is at 2.4% of GDP, which is half of what it was 50-years ago. The U.S. has explored new ways to finance its infrastructure because of funding uncertainty. Investments such as, pensions, foreign investments, and sovereign wealth funds, manage trillions in assets and are forecasted to grow. This paper presents an overview in infrastructure funding and identifies possible approaches in addressing long-term financial needs with foreign capital partnership.

scholarly journals Determination a Reasonable Concession Period for (PPP) Projects

2019 ◽  
Vol 5 (6) ◽  
pp. 1235-1248 ◽  
Author(s):  
Ali Hasan Hadi ◽  
Kadhim Raheim Erzaij
Keyword(s):  
Private Sector ◽  
Decision Support Tool ◽  
Infrastructure Development ◽  
Support Tool ◽  
The Public ◽  
Project Completion ◽  
Private Sector Participation ◽  
Quantitative Basis ◽  
Concession Period

Public Private Partnership (PPP) are agreements where public bodies enter into long term contractual with private entities for construction or management the public sector facilities, or provision services to the community. Internal rate of return (IRR), pay back regime or tariff, and the concession period (CP) are essential items to success (PPP) projects. This research presents a systematic approach for a win-win partnership contract determined on a quantitative basis, by informing the partnership parties how long contract period should be made.  Essence of the proposed methodology is that project completion time should allow a competent contractor to complete the project on schedule and operation period should be long enough to enable the concessionaire to achieve a reasonable return, but not too long such that concessionaire’s return is excessive and public sector’s interests are sacrificed. A case study of a PPP project in Mayoralty of Baghdad was conducted to evaluate performance of the developed mathematical models. The determined concession period (CP) has found to be approximately equal to actual concession period (CP) granted to the private sector.  Evaluation shows the possibility to adopt the proposed approach to determine the concession period (CP) more effectively. Instead of opportunism policy, the proposed methodology enables local government of Baghdad province to enhance its policies of awarding the partnership projects to increase private sector participation in infrastructure development. Finally, the proposed method can be used by investment practitioners as a decision support tool for contract concession period (CP), and is worth popularizing to design the contracted concession period (CCP) for partnership projects in Iraq, and also can use as a methodology to assess the critical aspects which related to partnership projects in general.

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