PROJECT FINANCE: Incentives and Governance


Jan 13, 2014 — Neil Boyle

The traditional financial engineering risk-return approach to PPP infrastructure finance goes far but not far enough.  PPPs are often financed with high or even aggressive debt/equity ratios ranging from 80:20 and occasionally reaching the mid 90s.  TCE/NIE tells us that the principals of infrastructure projects are typically bilaterally dependent due to ...

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Creating the Terms and Conditions for PPP Infrastructure Partnerships

Technical Notes

Nov 8, 2013 — Neil Boyle

PPP infrastructure partnerships are much more than a business model that conforms to certain legal formalities. To be sure, partnerships must be supported by law, but modern corporate law in most developing countries is still in process of development and is not likely to be tested anytime soon or regularly ...

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Jul 19, 2010 — Neil Boyle

UPDATED - TCE PRECEPTS FOR ANALYZING INSTITUTIONS 07-19-2010 ver 3C Please click on the above link to see the updated version of what I consider one of my important posts.  It is important because it concentrates in one file the beginning of what I have learned over the past 10 years of studying ...

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Common Hazards Encountered in PPP Projects

Dec 24, 2009 — Neil Boyle

Hazards are embedded in all agreements and contracts. Even after negotiating away all so-called risks, contract hazards comprise a bevy of hidden risks.  These hidden risks are more appropriately referred to as hazardous incentives or transaction costs, which enable the human factors of limited cognitive capacity and guileful self-interest. Please download the following ...

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Transaction Complexity Overtaking the Institutional Capacities of the State

Case Studies

Dec 15, 2009 — Neil Boyle

Case study (2007)  THE AIRPORT, a BOT to build and operate an international airport in an unnamed Country is an example of transaction complexity overtaking the capacities of the institutions meant to enable them. Transaction complexity came in three forms: the narrow dividing line between private ordering and corruption; an insensitive ...

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Negotiating the Deal for Governance Closure

Technical Notes

Nov 24, 2009 — Neil Boyle

The missing ingredients in PPP projects are the following: (i) pricing out of unrelieved contract hazards; (ii)agreements that signal confidence and continuity intentions of the parties; (iii) agreement and protocol to cost share unanticipated risks; and (iv) investments by government in transaction-specific assets at the forward stage to signal: (a) ...

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