Project Financing Initiative - Revision history

Peter at 20:16, 27 September 2015

2015-09-27T20:16:29Z

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	See [[Private ~~Financing~~ Initiative]]		See [[Private Finance Initiative]]

Peter at 20:15, 27 September 2015

2015-09-27T20:15:59Z

← Older revision	Revision as of 20:15, 27 September 2015
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		See [[Private Financing Initiative]]

Peter: Blanked the page

2015-09-27T20:13:45Z

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Peter: /* Different formats of PFI */

2015-09-27T11:56:41Z

Different formats of PFI

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	~~'''~~DBFO~~'''~~ format ~~'''PFI'''s~~ are recently becoming the preferred method in the UK because there is no transfer of the asset so a long term contract is made. Here focus is on provision of a service rather than facility so the private sector entity handles procurement, ownership and operation. The project is defined by its output (service) rather than input.		DBFO format PFIs are recently becoming the preferred method in the UK because there is no transfer of the asset so a long term contract is made. Here focus is on provision of a service rather than facility so the private sector entity handles procurement, ownership and operation. The project is defined by its output (service) rather than input.

	===Why is it important?===		===Why is it important?===

Peter: /* Financial Management Structure */

2015-09-27T11:55:19Z

Financial Management Structure

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	'''Non-Recourse''' - This is when a bank providing a loan for a project can only be re-paid from income of that project and not from other assets of the receiving borrower<ref>"[Investopedia's definition of Non-Recourse]"http://www.investopedia.com/terms/n/non-recoursefinance.asp</ref>.		'''Non-Recourse''' - This is when a bank providing a loan for a project can only be re-paid from income of that project and not from other assets of the receiving borrower<ref>"[Investopedia's definition of Non-Recourse]"http://www.investopedia.com/terms/n/non-recoursefinance.asp</ref>.

Peter at 11:54, 27 September 2015

2015-09-27T11:54:54Z

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	PFI is used all over the world but primarily in Anglo-Saxon countries such as the U.S., Australia, Canada, South Africa but is also used in forward-thinking countries such as Chile and the Netherlands.		PFI is used all over the world but primarily in Anglo-Saxon countries such as the U.S., Australia, Canada, South Africa but is also used in forward-thinking countries such as Chile and the Netherlands.



			==Financial Management Structure==
			[[File:Project Financing Initiative.png\|border\|400px\|thumb\|right\|Fig 1: Project Financing Structure<ref name="Akintola">The Financial Structure of Private Finance Initiative Projects (2001) Akintola Akintoye1 , Matthias Beck , Cliff Hardcastle , Ezekiel Chinyio and Darinka Asenova.</ref>]]

			The procedure involves private companies coming together to form the special purpose vehicle (SPV) as shown in Fig 1. This would typically consist of at least one contractor, facilities manager and financier. These institutions are required to provide some capital to ensure their commitment to the project but this is not enough to fund the whole project. Banks are then approached to provide some financial backing. Following this a thorough risk and feasibility study has to be carried out to ensure that the return on the project is worth the initial investment.


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	'''Non-Recourse''' - This is when a bank providing a loan for a project can only be re-paid from income of that project and not from other assets of the receiving borrower<ref>"[Investopedia's definition of Non-Recourse]"http://www.investopedia.com/terms/n/non-recoursefinance.asp</ref>.		'''Non-Recourse''' - This is when a bank providing a loan for a project can only be re-paid from income of that project and not from other assets of the receiving borrower<ref>"[Investopedia's definition of Non-Recourse]"http://www.investopedia.com/terms/n/non-recoursefinance.asp</ref>.


	~~==Financial Management Structure==~~
	[[File:Project Financing Initiative.png\|border\|400px\|thumb\|right\|Fig 1: Project Financing Structure<ref name="Akintola">The Financial Structure of Private Finance Initiative Projects (2001) Akintola Akintoye1 , Matthias Beck , Cliff Hardcastle , Ezekiel Chinyio and Darinka Asenova.</ref>]]

	The procedure involves private companies coming together to form the special purpose vehicle (SPV) as shown in Fig 1. This would typically consist of at least one contractor, facilities manager and financier. These institutions are required to provide some capital to ensure their commitment to the project but this is not enough to fund the whole project. Banks are then approached to provide some financial backing. Following this a thorough risk and feasibility study has to be carried out to ensure that the return on the project is worth the initial investment.

Peter: /* Financial Management Structure */

2015-09-27T11:53:32Z

Financial Management Structure

← Older revision		Revision as of 11:53, 27 September 2015
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	The procedure involves private companies coming together to form the special purpose vehicle (SPV) as shown in Fig 1. This would typically consist of at least one contractor, facilities manager and financier. These institutions are required to provide some capital to ensure their commitment to the project but this is not enough to fund the whole project. Banks are then approached to provide some financial backing. Following this a thorough risk and feasibility study has to be carried out to ensure that the return on the project is worth the initial investment.		The procedure involves private companies coming together to form the special purpose vehicle (SPV) as shown in Fig 1. This would typically consist of at least one contractor, facilities manager and financier. These institutions are required to provide some capital to ensure their commitment to the project but this is not enough to fund the whole project. Banks are then approached to provide some financial backing. Following this a thorough risk and feasibility study has to be carried out to ensure that the return on the project is worth the initial investment.

Peter: /* Financial Management Structure */

2015-09-27T11:52:59Z

Financial Management Structure

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	==Financial Management Structure==		==Financial Management Structure==
	[[File:Project Financing Initiative.png\|border\|~~300px~~\|right\|Fig 1: Project Financing Structure<ref name="Akintola">The Financial Structure of Private Finance Initiative Projects (2001) Akintola Akintoye1 , Matthias Beck , Cliff Hardcastle , Ezekiel Chinyio and Darinka Asenova.</ref>]]		[[File:Project Financing Initiative.png\|border\|400px\|thumb\|right\|Fig 1: Project Financing Structure<ref name="Akintola">The Financial Structure of Private Finance Initiative Projects (2001) Akintola Akintoye1 , Matthias Beck , Cliff Hardcastle , Ezekiel Chinyio and Darinka Asenova.</ref>]]

	The procedure involves private companies coming together to form the special purpose vehicle (SPV) as shown in Fig 1. This would typically consist of at least one contractor, facilities manager and financier. These institutions are required to provide some capital to ensure their commitment to the project but this is not enough to fund the whole project. Banks are then approached to provide some financial backing. Following this a thorough risk and feasibility study has to be carried out to ensure that the return on the project is worth the initial investment.		The procedure involves private companies coming together to form the special purpose vehicle (SPV) as shown in Fig 1. This would typically consist of at least one contractor, facilities manager and financier. These institutions are required to provide some capital to ensure their commitment to the project but this is not enough to fund the whole project. Banks are then approached to provide some financial backing. Following this a thorough risk and feasibility study has to be carried out to ensure that the return on the project is worth the initial investment.

Peter: /* Financial Management Structure */

2015-09-27T11:46:32Z

Financial Management Structure

← Older revision		Revision as of 11:46, 27 September 2015
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	==Financial Management Structure==		==Financial Management Structure==
	[[File:Project Financing Initiative.png\|border\|300px\|right\|Fig 1: Project Financing Structure. ~~Source: Author~~]]		[[File:Project Financing Initiative.png\|border\|300px\|right\|Fig 1: Project Financing Structure<ref name="Akintola">The Financial Structure of Private Finance Initiative Projects (2001) Akintola Akintoye1 , Matthias Beck , Cliff Hardcastle , Ezekiel Chinyio and Darinka Asenova.</ref>]]

	The procedure involves private companies coming together to form the special purpose vehicle (SPV) as shown in Fig 1. This would typically consist of at least one contractor, facilities manager and financier. These institutions are required to provide some capital to ensure their commitment to the project but this is not enough to fund the whole project. Banks are then approached to provide some financial backing. Following this a thorough risk and feasibility study has to be carried out to ensure that the return on the project is worth the initial investment.		The procedure involves private companies coming together to form the special purpose vehicle (SPV) as shown in Fig 1. This would typically consist of at least one contractor, facilities manager and financier. These institutions are required to provide some capital to ensure their commitment to the project but this is not enough to fund the whole project. Banks are then approached to provide some financial backing. Following this a thorough risk and feasibility study has to be carried out to ensure that the return on the project is worth the initial investment.

Peter: /* Financial Management Structure */

2015-09-27T11:40:17Z

Financial Management Structure

← Older revision		Revision as of 11:40, 27 September 2015
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	==Financial Management Structure==		==Financial Management Structure==
	[[File:Project Financing Initiative.png\|border\|300px\|~~left~~\|Fig 1: Project Financing Structure. Source: Author]]		[[File:Project Financing Initiative.png\|border\|300px\|right\|Fig 1: Project Financing Structure. Source: Author]]

	The procedure involves private companies coming together to form the special purpose vehicle (SPV) as shown in Fig 1. This would typically consist of at least one contractor, facilities manager and financier. These institutions are required to provide some capital to ensure their commitment to the project but this is not enough to fund the whole project. Banks are then approached to provide some financial backing. Following this a thorough risk and feasibility study has to be carried out to ensure that the return on the project is worth the initial investment.		The procedure involves private companies coming together to form the special purpose vehicle (SPV) as shown in Fig 1. This would typically consist of at least one contractor, facilities manager and financier. These institutions are required to provide some capital to ensure their commitment to the project but this is not enough to fund the whole project. Banks are then approached to provide some financial backing. Following this a thorough risk and feasibility study has to be carried out to ensure that the return on the project is worth the initial investment.