To Soon For Jeff Essay Research Paper free essay sample

To Soon For Jeff Essay, Research Paper To shortly For Jeff ( essay ) Dashan is a friend of Jeff. Even though Christy became a truly good friend of his. Though Dashan wasted his clip and besides had his bosom broken by Christy he has suffered the least. Thingss could hold exercise for Dashan and Christy but no. Dashan was willing to take attention of the babe as a male parent. But shortly came to recognize he could non make that. Alternatively he went out to college. Uncle Steve is of class Jeff? s uncle. Uncle Steve and Jeff are truly close when Jeff was little his pa left him. Now when Christy Was remaining over at Jeff? s house, Jeff decided to travel to uncle Steve? s house so he won? Ts have to make anything with here while she is remaining over at Jeff? s house. Mr. Roger is Jeff argument instructor. We will write a custom essay sample on To Soon For Jeff Essay Research Paper or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Mr. Roger was depending on Jeff to travel to the competition unluckily Jeff could non travel to the competition Because Christy was taken to the infirmary because of Ethan? s reaching to shortly. The argument squad was truly numbering on him and felt disappointed about him. Besides Jeff attended Brooker University. Jeff Wasted Half of his clip because he did non complete his four twelvemonth? s at Brooker. Brooker University was traveling to give Jeff a full four twelvemonth college scholarship. Nichole is one of Jeff? s teammates. Jeff and Nichole shortly acquire to cognize each other really good. Nichole ends up kiping with Jeff a twosome of times while they watch a film. Bibliography Introduction Young people making incorrect things and shortly repenting them. This book is largely about a cat named Jeff and his girlfriend Christy. Jeff was non even believing about holding a child at age 18 Jeff was non ready for sex. First he used a rubber holding sex with Christy but sooner they did it more and more but Christy came out to be pregnant. This book gets even better she lied to Jeff and said she was on the pill that? s how she came out to be pregnant. In your ain words what do you believe will go on in their relationship? Will Jeff stay with Christy and take attention of the babe she will shortly give birth to?

Chronology of American History From 1726 to 1750

Chronology of American History From 1726 to 1750 1726 Log College at Neshaminy in Bucks County is founded. It will be important in training evangelists who will become involved in the Great Awakening movement that will occur in the 1730s and 1740s.Riots occur in Philadelphia. The Pennsylvania colony governor will forcefully put down the riots. 1727 Anglo-Spanish War breaks out. It lasts a little more than one year, with skirmishes mainly in the Carolinas.George II becomes King of England.History of the Five Indian Nations by Dr. Cadwallader Colden is published. It details information about the Iroquois tribes.Benjamin Franklin creates the Junto Club, a group of mostly artisans who are socially progressive. 1728 The first American synagogue is built on Mill Street in New York City.Horses and carriages are banned in Boston Common. It will eventually be called the oldest park in the United States. 1729 North Carolina becomes a royal colony.Benjamin Franklin begins publishing the Pennsylvania Gazette.The Old South Meeting House is built in Boston. It will become a key meeting place for revolutionaries and was where the Boston Tea Party meetings occurred. 1730 North Carolina and South Carolina are confirmed as royal provinces by the British parliament.The city of Baltimore in the Maryland colony is established. It is named after Lord Baltimore.The Philosophical Society is founded in Newport, Rhode Island which has become a vacation destination due to its spa. 1731 The first public library in American colonies is founded in Philadelphia by Benjamin Franklin and his Junto Club. It is called the Library Company of Philadelphia.The American colonial legislatures are not allowed to place monetary duties on imported slaves according to royal decree. 1732 Georgia becomes a colony out of land from the South Carolina territory when the Charter of 1732 is issued to James Oglethorpe and others.Construction begins on the Pennsylvania State House, better known as Independence Hall, in Philadelphia.George Washington is born on February 22nd in the Virginia colony.The first Catholic church in the American colonies is founded. It will be the only Catholic church erected before the American Revolution.Benjamin Franklin begins publishing Poor Richards Almanac, which will become a huge success.The Hat Act is passed by parliament, banning hats to be imported from one American colony to another, in an attempt to help London hatmakers. 1733 James Oglethorpe arrives in Georgia with 130 new colonists. He soon founds Savannah.The Molasses Act is passed by parliament setting heavy import duties on molasses, rum, and sugar from Caribbean islands other than those controlled by the British.The New York Weekly Journal begins publication with John Peter Zenger as its editor. 1734 John Peter Zenger is arrested for seditious libel against New York Governor William Cosby.Jonathan Edwards preaches a series of sermons in Northampton, Massachusetts that begins the Great Awakening. 1735 The trial of John Peter Zenger takes place after the newspaper editor spent ten months imprisoned. Andrew Hamilton defends Zenger, who is acquitted, for the statements he published were true, and thus could not be libelous.The first American fire insurance company is founded in Charleston. It will be bankrupt within five years, when half of Charleston is devastated by a fire. 1736 John and Charles Wesley arrive in the Georgia colony at the invitation of James Oglethorpe. They bring the ideas of Methodism to the American colonies. 1737 The first citywide celebration of St. Patricks Day is held in Boston.The Walking Purchase of 1737 occurs in Pennsylvania. William Penns son Thomas employs swift walkers to pace the boundaries of land given by the Delaware Indians. According to their treaty, they are to receive the land a man can walk in a day and a half. The Indians feel that the use of professional walkers is cheating and refuse to leave the land. The colonists enlist the help of the Iroquois Indians in their removal.A border dispute between Massachusetts and New Hampshire begins that will last for over 150 years. 1738 English Methodist evangelist George Whitefield, a key figure in the Great Awakening, arrives in Savannah, Georgia.The New Jersey colony gets its own governor for the first time. Lewis Morris is appointed to the position.John Winthrop, one of the most important scientists in the American colonies, is appointed to the chair of mathematics at Harvard University. 1739 Three uprisings of African-Americans occur in South Carolina resulting in numerous deaths.The War of Jenkins Ear begins between England and Spain. It will last until 1742 and will become part of the larger War of Austrian Succession.The Rocky Mountains are first sighted by French explorers Pierre and Paul Mallet. 1740 The War of Austrian Succession begins in Europe. The colonists will officially join the fight in 1743.James Oglethorpe of the Georgia colony leads troops along with Cherokee, Chickasaw, and Creek Indians to capture two forts from the Spanish in Florida. However, they will later fail to take St. Augustine.Fifty slaves are hanged in Charleston, South Carolina when their planned revolt is discovered.Famine in Ireland sends many settlers to the Shenandoah Valley area, along with other southern colonies in America. 1741 New Hampshire colony gets its own governor for the first time. The English crown appoints Benning Wentworth to the position. 1742 Benjamin Franklin invents the Franklin Stove, a better and safer way to heat homes.Nathanael Greene, American Revolutionary War General, is born. 1743 The American Philosophical Society is founded in Philadelphia by the Junto Club and Benjamin Franklin. 1744 The American phase of the War of Austrian Succession, called King Georges War, begins.The Six Nations of the Iroquois League grant the English colonies their lands in the northern Ohio territory. They will have to fight the French for this land. 1745 The French fortress of Louisbourg is captured by a combined New England force and fleet during King Georges War.During King Georges War, the French burn the English settlement of Saratoga in the New York colony. 1746 The boundary between Massachusetts colony and Rhode Island colony is officially set by parliament. 1747 The New York Bar Association, the first legal society in the American colonies, is founded. 1748 King Georges War concludes with the Treaty of Aix-la-Chapelle. All colonies are restored to their original owners from before the war including Louisbourg. 1749 The Ohio Company is at first granted 200,000 acres of land between the Ohio and Great Kanawha Rivers and the Allegheny Mountains. An additional 500,000 acres is added later in the year.Slavery is allowed in the Georgia Colony. It had been prohibited since the colonys founding in 1732. 1750 The Iron Act is passed by parliament, putting a halt to the growth of the iron-finishing business in the colonies, to help protect the English iron industry. Resource and Further Reading: Schlesinger, Arthur M., editor. The Almanac of American History. Barnes Noble, 2004.

Zatwsho LLC Case Study Example | Topics and Well Written Essays - 1250 words

Zatwsho LLC - Case Study Example The report also discusses about the kind of ownership that family business should have. Target market of the product has also been defined along with a memo to promote the company’s offerings in a better way. In the end of the report, recommendations have been given to improve the website of Zatswho. QUESTION # 1: Tips for Making Family Business Successful: There are several things that are to be considered in order to make a family business successful. One of the main tips to make a family business successful is that the roles and responsibilities of the partners or family members should be clearly defined and every family member should know what their responsibilities are and what they are supposed to do. Pitfalls That Should Be Avoided To Make Family Business Successful: It is important for every business to grow with the passage of time and in a family business, a stage comes when the growth of the business becomes static and at this point of time it is important to seek a dvices from outside advisors or people who are not in the family so that the business could have some fresh ideas and it could start growing again. QUESTION # 2: Because there are two people involved in the business therefore it is recommended to have a partnership rather than sole proprietor. As the business would be a partnership therefore the agreement of both Cooper and Schwinoff would be required while taking important decisions. QUESTION # 3: The target market of Zatswho would be parents and grandparents as they would be using these cards to teach their kids about their family members. However other target markets of the product could be day care centers and schools as they could use these cards to make kids recognize different important personalities and even cartoon characters. Along with this the target market of the company also includes the fundraising organizations, special needs children, and adults with the problem of memory loss. QUESTION # 4: Zatswho LLC January 20, 2012 To: Cooper and Schwinoff From: Subject: Proposing Guerrilla Marketing Strategy for Zatswho LLC Guerrilla marketing strategy has become important for the businesses in this highly competitive world, especially for the businesses which are targeting specific and small market segments (Levinson, 2007), as in the case of Zatswho. The company is mainly targeting the grandparents and parents who like to play with their grandchildren and children and the same time wants to increase the memory of the children. Apart from this other target markets include children with special needs, day care centers, schools, fundraising organizations, and seniors with the problem of memory loss. In order to capture the target markets and attract them it is essential for the company to come up with some unique and out of box marketing strategies. The company can go for price discount and cheaper goods strategy, as the target market will not be willing to spend much on such playing items. This strategy of price discount can be supported by different limited time promotional activities like: Placing colorful sticky notes consisting information about the game in the children stores and shops. Holding competition through social media for suggesting best game which can be played using these cards. Different posters can be placed at schools, day care centers, and playing grounds in order to attract more market. Hold different competitions at shopping malls, schools, and playing grounds in which judging the children on the ability of their quickly identifying the pictures. Partnership with some chocolate or confectionary company and come up with special packages. All these promotional acti

Assignment 4 Example | Topics and Well Written Essays - 1000 words - 4

4 - Assignment Example Secondly, a leadership is defined by the level of ensuring cooperativeness between all the stakeholders involved. A good example could be that of Steve Jobs, who worked with Woz to start the Apple Company in his parent’s garage. Later, the company grew to become one of the world’s largest companies. Thirdly, a leader must be courageous and learn how to deal with challenges as they come. Further, a leader must be dedicated and willing to lead the company or the organization into greater heights. The world is changing due to evolution in all areas especially in the areas of technology. Therefore, a leader must be willing to drive his company through all these areas and deliver the best to all its clients. Finally, a leader must be creative in all aspects f management in the organization. This gives a company a competitive edge against its rivals in the global market. From our case study, Fujio Cho who is the leader of the Toyota Motor Corporation displays the true aspects of a leader in different ways. His unique leadership has enabled the company to conquer the international market. He has a total understanding of globalization that includes the needs of their clients in the global market. Through his able management, he has enabled the company to assess and determine the needs of the clients in the global market. For any leader to succeed in the global market, he or she must adopt the concepts of both localization and globalization. According to most analysts in this field, this is the most challenging issue faced by leaders all over the world. A global leader must and needs to fulfill these two perspectives on the business environments. A leader must also demonstrate a successful plan in the area of business development. This is achieved by clearly understanding the important values of the company and later developing strategies that will be used to achieve them in the cross-culture environment. In this case, Fujio developed a portfolio

Cross cultural awareness Essay Example | Topics and Well Written Essays - 5000 words

Cross cultural awareness - Essay Example This clearly states the increasing importance of globalization in the present era. With the increase in globalization, firms are employing people from diverse backgrounds and cultures. This is where the problems of cultural stereotyping arise. There is a need for firms to train the employees in the International Human Resource Management processes. IHRM involves the study of how the HR processes (Recruitment, induction, compensation, performance management, etc) are conditioned by the political, legal, economic environments and the labor practices of the countries in which their firm has subsidiaries. The cultural adaption training given to the employees is known as acculturization. In America, autonomy is given a lot of importance whereas in countries like India, most organizations have a very bureaucratic culture. Also, in America, people are risk taking and welcome uncertainty hands on. Whereas it is the complete contrast in countries like Japan where people fear taking risks (Patricia Ann Mehegan 2006). Thus, global management is all about recognizing these cultural differences, acknowledging them and adapting to them. The global firms nowadays require managers who are well trained to adapt to the cultural difference when they go as expats in other countires. Cross cultural understanding need to be a part of employee’s learning if he wants to excel in his career. The commonly held beliefs or opinions about certain individuals, cultures or communities are known as stereotypes (Richard A. Nitsche 1977). Stereotypes are basically our perceptions of something, the image we draw in our heads of a particular person or thing. These stereotypes are based on previous assumptions, which are not always verified. People stereotype a community into two categories: the in-groups and the out groups. In-groups are the group people see in a positive light and

Concepts of Project Finance

Concepts of Project Finance Introduction Project Finance. Origins of project finance Project financing is generally sought for infrastructure related projects. Its linkages to the economy are mutiple and complex, because it affects production and consumption directly, creates negative and positive externalities, and involves large flow of expenditure. Prior to World War I, private entrepreneurs built major infrastructure projects all over the world. During the 19th century ambitious projects such as the suez canal and the Trans-Siberian Railway were constructed, financed and owned by private companies. However the private sector entrepreneur disappeared after world War I and as colonial powers lost control, new governments financed infrastructure projects through public sector borrowing. The state and the public utility organizations became the main clients in the commissioning of public works, which were then paid for out of general taxation. After World War II, most infrastructure projects in industrialized countries were built under the supervision of the state and were funded from the respective budgetary resources of sovereign borrowings. This traditional approach of government in identifying needs, setting policy and procuring infrastructure was by and large followed by developing countries, with the public finance being supported by bond instruments or direct sovereign loans by such organizations as the world Bank, the Asian Development Bank and the International Monetary Fund. Development In the early 1980s The convergence of a number of factors by the early 1980s led to the search for alternative ways to develop and finance infrastructure projects around the world. These factors include: Continued population and economic growth meant that the need for additional infrastructure- roads, power plants, and water-treatment plants-continued to grow. The debt crisis meant that many countries had less borrowing capacity and fewer budgetary resources to finance badly needed projects; compelling them to look to the private sector for investors for projects which in the past would have been constructed and operated in the public sector Major international contracting firms, which in the mid-1970s had been kept busy, particularly in the oil rich Middle East, were, by the early 1980s, facing a significant downturn in business and looking for creative ways to promote additional projects. Competition for global markets among major equipment suppliers and operators led them to become promoters of projects to enable them to sell their products or services. Outright privatization was not acceptable in some countries or appropriate in some sectors for political or strategic reasons and governments were reluctant to relinquish total control of what maybe regarded as state assets. During the 1980s, as a number of governments, as well as international lending institutions, became increasingly interested in promoting the development for the private sector, and the discipline imposed by its profit motive, to enhance the efficiency and productivity of what had previously been considered public sector services. It is now increasingly recognized that private sector can play a dynamic role in accelerating growth and development. Many countries are encouraging direct private sector involvement and making strong efforts to attract new money through new project financing techniques. Such encouragement is not borne solely out of the need for additional financing, but it has been recognized that the private sector involvement can bring with it the ability to implement projects in a shorter time, the expectation of more efficient operation, better management and higher technical capability and, in some cases, the introduction of an element of competition into monopolistic structures. However, the private sector, driven by commercial objectives, would not want to take up any project whose returns are not consumerate with the risks. Infrastructure projects typically have a long gestation period and returns are uncertain. What then are the incentives of private capital providers to participate in infrastructure projects, which are fraught with huge risks? Project finance provides satisfactory answers to these questions. Project finance is typically defined as limited or non-recourse financing of a new project through separate incorporation of vehicle or Project Company. Project financing involves non-recourse financing of the development and construction of a particular project in which the lender looks principally to the revenues expected to be generated by the project for the repayment of its loan and to the assets of the project as collateral for its loan rather than to the general credit of the project sponsor. In other words the lenders finance the project looking at the creditworthiness of the project, not the creditworthiness of the borrowing party. Project Financing discipline includes understanding the rationale for project financing, how to prepare the financial plan, assess the risk, design the financing mix, and raise the funds. A knowledge base is required regarding the design of contractual arrangements to support project financing; issues fior the host government legislative provisions, public/private infrastructure partnerships, public/private financing structures; credit requirements of lenders, and how to determine the projects borrowing capacity; how to prepare cash flow projections and use them to measure expected rates of return; tax and accounting considerations; and analytical techniques to validate the projects feasibility. Traditional finance is corporate finance, where the primary source of repayment for investor and creditors is the sponsoring company, backed by its entire balance sheet, not the project alone. Although creditors will usually still seek to assure themselves of economic viability of the project being financed so that it is not a drain on the corporate sponsors existing pool of assets, an important influence on their credit decision is the overall strength of the sponsors balance sheet, as well as their business reputation. If the project fails, lenders do not necessarily suffer, as long as the company owning the project remains financially viable. Corporate finance is often used for shorter, less capital-intensive projects that do not warrant outside financing. The company borrows funds to construct a new facility and guarantees to repay the lenders from its available operating income and its base of assets. However private companies avoid this option, as it strains their balance sheets and capacity, and limits their potential participation in future projects. Project financing is different from traditional forms of finance because the financier principally looks to the assets and revenue of the project in order to secure and service the loan. In project finance a team or consortium of private firms establishes a new project company to build, own and operate a separate infrastructure project. The new project company to build own and operate a separate infrastructure project. The new project company is capitalized with equity contributions from each of the sponsors. In contrast to an ordinary borrowing situation, in a project financing the financier usually has little or no recourse to the non-project assets of the borrower or the sponsors of the project. The project is not reflected in the sponsors balance sheets. Extent of recourse Recourse refers to the right to claim a refund from another party, which has handled a bill at an earlier stage. The extent of recourse refers to the range of reliance on sponsors and other project participants for enhancement to protect against certain projects risks. In project financing there is limited or no recourse. Non-recourse project finance is an arrangement under which investors and credit financing the project do not have any direct recourse to the sponsors. In other words, the lender is not permitted to request repayment from the parent company if borrower fails to meet its payment obligation. Although creditors security will include the assets being financed, lenders rely on the operating cash flow generated from those assets for repayment. When the project has assured cash flows in the form of a reliable off taker and well-allocated construction and operating risks, the lenders are comfortable with non-recourse financing. Lenders prefer limited recourse when the project has significantly higher risks. Limited recourse project finance permits creditors and investors some recourse to the sponsors. This frequently takes the form of a precompletion guarantee during a projects construction period, or other assurance of some form of support for the project. In most developing market projects and in other projects with significant construction risk, project finance is generally of the limited recourse type. Merits and Demerits of Project Financing: Project financing is continuously used as a financing method in capital-intensive industries for projects requiring large investments of funds, such as the construction of power plants, pipelines, transportation systems, mining facilities, industrial facilities and heavy manufacturing plants. The sponsors of such projects frequently are not sufficiently creditworthy ot obtain tr5aditional financing or unwilling to take the risk and assume the debt obligation associated with traditional financing. Project financing permits the risk associated with such projects to be allocated among number of parties at levels acceptable to each party. The advantages of project financing are as follows: 1. Non-recourse: The typical project financing involves a loan to enable the sponsor to construct a project where the loan is completely â€Å"Non-recourse† to the s[sponsor i.e. the sponsor has no obligation to make payments on the project loan if revenues generated by the project are insufficient to cover the principle and interest payable on the loan. This safeguards the assets of sponsors. The risks of new projects remain separate from the existing business. 2. Maximizes leverage: In project financing. The sponsors typically seek to finance the cost of development and construction of project on highly leverage basis. Frequently such costs are financed using 80 to 100 percent debt. High leverage in an non recourse financing permits a sponsor to put less in funds at risk, permits a sponsor to finance a project without diluting its equity investment in the project and in certain circumstances, also may permit reduction in cost of capital by substituting lower cost, tax deductible interest for higher cost, taxable return on equity. 3. Off balance sheet treatment: Depending upon the structure of project financing the project sponsors may not be required to report any of the project debt on its balance sheet because such debt is non recourse or of limited recourse to the sponsor. Off balance sheet treatment can have the added practical benefit of helping the sponsor comply with convenient and restrictions related to the board. Borrowings funds contain in other indentures and credit agreements to which the sponsor is a party. 4. Maximizes tax benefits: Project finance is generally structured to maximize tax benefit and to assure that all available tax benefit are used by the sponsors or transferred to the extent possible to another party through a partnership, lease or vehicle. 5. Diversifies risk: By allocating the risk and financing need of the projects among a group of interested parties or sponsors, project financing makes it possible to undertake project that would be too large or would pose too great a risk for one party ion its own. Demerits: 1. Complexity of risk allocation: Project financing is complex transaction involving many participants with diverse interest. If a project is to be successful risk must be allocated among the participants in an economically efficient way. However, there is necessary tension between the participants. For e.g between the lender and the sponsor regarding the degree of recourse, between the sponsor and contractor regarding the nature of guarantees., etc which may slow down the realization of the project. 2. Increase transaction cost: It involves higher transaction costs compared to other types of transactions, because it requires an expensive and time-consuming due diligence conducted by the lenders lawyer, the independent engineers etc., since the documentation is usually complex and lengthy. 3. Higher interest rates and fees: The interest rates and fees charged in project financing are higher than on direct loan made to the project sponsor since the lender takes on more risk. 4. Lender supervision: In accordance with a higher risk taken in project financing the lender imposes a greater supervion on the mangement and operation of the project to make sure that the project success is not impaired. The degree of lender supervision will usually result into higher costs which will typically have to be borne by the sponsor. Whether expanding manufacturing facilities, implementing new processing capabilities, or leveraging existing assets in new markets, innovative financing is often at the core of long-term projects to transform a companys operations. Akin to the underlying corporate transformation, the challenge with innovative financial structures such as project finance is that the investment is made upfront while the anticipated benefits of the initiative are realized years later. There has been a rise in number of companies that need innovative financing to satisfy their capital needs, in a significant number of instances they have viable goals but find that traditional lenders are unable to understand their initiatives. And so the need emerged for project finance. Project financing is a specialized form of financing that may offer some cost advantages when very large amounts of capital are involved It can be tricky to structure, and is usually limited to projects where a good cash flow is anticipated. Project finance can be defined as: financing of an industrial (or infrastructure) project with myriad capital needs, usually based on non-recourse or limited recourse structures, where project debt and equity (and potentially leases) used to finance the project are paid back from the cash flow generated by the project, with the projects assets, rights and interests held as collateral. In other words, its an incredibly flexible and comprehensive financing solution that demands a long-term lending approach not typical in todays market place. Whether expanding manufacturing facilities, implementing new processing capabilities, or leveraging existing assets in new markets, innovative financing is often at the core of long-term projects to transform a companys operations. Akin to the underlying corporate transformation, the challenge with innovative financial structures such as project finance is that the investment is made upfront while the anticipated benefits of the initiative are realized years later. Infrastructure is the backbone of any economy and the key to achieving rapid sustainable rate of economic development and competitive advantage. Realizing its importance governments commit substantial portions of their resources for development of the infrastructure sector. As more projects emerge getting them financed will continue to require a balance between equity and debt. With infrastructure stocks and bonds being traded in the markets around the world, the traditionalist face change. A country on the crest of change is India. Unlike many developing countries India has developed judicial framework of trust laws, company laws and contract laws necessary for project finance to flourish. Types of Project Finance Build Operate Transfer (BOT) Build Own Operate Transfer (BOOT) Build Own Operate (BOO) Build Operate Transfer Build operate transfer is a project financing and operating approach that has found an application in recent years primarily in the area of infrastructure privatization in the developing countries. It enables direct private sector investment in large scale infrastructure projects. In BOT the private contractor constructs and operates the facility for a specified period. The public agency pays the contractor a fee, which may be a fixed sum, linked to output or, more likely, a combination of the two. The fee will cover the operators fixed and variable costs, including recovery of the capital invested by the contractor. In this case, ownership of the facility rests with the public agency. The theory of BOT is as follows:- BUILD A private company (or consortium) agrees with a government to invest in a public infrastructure project. The company then secures their own financing to construct the project. Operate The private developer then operates, maintains, and manages the facility for a agreed concession period and recoups their investment through charges or tolls. Transfer- After the concessionary period the company transfers ownership and operation of the facility to the government or relevant state authority. In a BOT arrangement, the private sector designs and builds the infrastructure, finances its construction and operates and maintains it over a period, often as long as 20 or 30 years. This period is referred to as the â€Å"concession† period. In short, under a BOT structure, a government typically grants a concession to a project company under which the project company has the right to build and operate a facility. The project company borrows from the lending institutions in order to finance the construction of the facility. The loans are repaid from â€Å"tariffs† paid by the government under the off take agreement during the life of the concession. At the end of the concession period the facility is usually transferred back to the government. Advantages The Government gets the benefit of the private sector to mobilize finance and to use the best management skills in the construction, operation and maintenance of the project. The private participation also ensures efficiency and quality by using the best equipment. BOT provides a mechanism and incentives for enterprises to improve efficiency through performance-based contracts and output-oriented targets The projects are conducted in a fully competitive bidding situation and are thus completed at the lowest possible cost. The risks of the project are shared by the private sector Disadvantages There is a profit element in the equity portion of the financing, which is higher than the debt cost. This is the price paid for passing of the risk to the private sector It may take a long time and considerable up front expenses to prepare and close a BOT financing deal as it involves multiple entities and requires a relatively complicated legal and institutional framework. There the BOT may not be suitable for small projects It may take time to develop the necessary institutional capacity to ensure that the full benefits of BOT are realized, such as development and enforcement of transparent and fair bidding and evaluation procedures and the resolution of potential disputes during implementation. Build Own Operate Transfer (BOOT) A BOOT funding model involves a single organization, or consortium (BOOT provider) who designs, builds, funds, owns and operates the scheme for a defined period of time and then transfers this ownership across to a agreed party. BOOT projects are a way for governments to bundle together the design and construction, finance, operations and maintenance and potentially marketing and customer interface aspects of a project and let these as a package to a single private sector service provider. The asset is transferred back to the government after the concession period at little or no cost. The Components of BOOT. B for Build The concession grants the promoter the right to design, construct, and finance the project. A construction contract will be required between the promoter and a contractor. The contract is often among the most difficult to negotiate in a BOOT project because of the conflict that increasingly arises between the promoter, the contractor responsible for building the facility and those financing its construction. Banks and other providers of funds want to be sure that the commercial terms of the construction contract are reasonable and that the construction risk is placed as far as possible on the contractors. The contractor undertakes responsibility for constructing the asset and is expected to build the project on time, within budget and according to a clear specification and to warrant that the asset will perform its design function. Typically this is done by way of a lump-sum turnkey contract. O for Own The concession from the state provides concessionaire to own, or at least possess, the assets that are to be built and to operate them for a period of time: the life of the concession. The concession agreement between the state and the concessionaire will define the extent to which ownership, and its associated attributes of possession and control, of the assets lies with the concessionaire. O for Operate An operator assumes the responsibility for maintaining the facilitys assets and the operating them on the basis that maximizes the profit or minimizes the cost on behalf of the concessionaire and, like the contractor undertaking construction and be a shareholder in the project company. The operator is s often an independent through the promoter company. T for Transfer This relates to a change in ownership of the assets that occurs at the end of the concession period, when the concession assets revert to the government grantor. The transfer may be at book value or no value and may occur earlier in the event of failure of concessionaire. Stages of Boot Project Build Design Manage project implementation Carry out procurement Finance Construct Own Hold in interest under concession Operates Mange and operate facility Carry out maintenance Deliver products/services Receive payment for product/ service Transfer Hand over project in operating condition at the end of concession period Advantages The majority of construction and long term risk can be transferred onto the BOOT provider. The BOOT operator can claim depreciation on the facility constructed and depreciation being a tax-deductible expense shareholder returns are maximized. Using an output based purchasing model, the tender process will encourage maximum innovations allowing the most efficient designs to be explored for the scheme. This process may also be built into more traditional tendering processes. Accountability for the asset design, construction and service delivery is very high given that if the performance targets are not met, the operator stands to lose a portion of capital expenditure, capital profit, operating expenditure and operating profit. Boot operators are experienced with management and operation of infrastructure assets and bring these skills to scheme. Corporate structuring issues and costs are minimal within a BOOT model, as project funding, ownership and operation are the responsibility of the BOOT operator. These costs will however be built into the BOOT project pricing. Disadvantages Boot is likely to result in higher cost of the product/ service for the end user. This is a result of the BOOT provider incurring the risks associated with 100 percnet financing of the scheme and the acceptance of the ongoing maintenance liabilities. Users may have a negative reaction to private sector involvement in the scheme, particularly if the private sector is an overseas owned company Management and monitoring of the service level agreement with the BOOT operators can be time consuming and resource hungry. Procedures need to be in place to allow users to assess service performance and penalize the BOOT operator where necessary. A rigorous selection process is required when selecting a boot partner. Users need to be confident that the BOOT operator is financially secure and sufficiently committed to the market prior to considering their bid. Build Own Operate In BOO, the concessionaire constructs the facility and then operates it on behalf of the public agency. The initial operating period {over which the capital cost will be recovered} is defined. Legal title to the facility remains in the private sector, and there is no obligation for the public sector to purchase the facility or take title. The private sector partner owns the project outright and retains the operating revenue risk and all of the surplus operating revenue in perpetuity. As an alternative to transfer, a further operating contract {at a lower cost} may be negotiated. Design Build Finance Operate (DBFO): Under this approach, the responsibilities fro designing, building, financing and operating are bundled together and transferred to private sector partners. They are also often supplemented by public sector grants in the from of money or contributions in kind, such as right of way. In certain cases, private partners may be required to make equity investments as well. DBFO shifts a great deal of the responsibility for developing and operating to private sector partners, the public agency sponsoring a project would retain full ownership over the project. Others: Build Transfer Operate (BTO) The BTO model is similar to BOT model except that the transfer to the public owner takes place at the time that construction is completed, rather than at the end of the franchise period. The concessionary builds and transfers a facility to the owner but exclusively operates the facility on behalf of the owner by means of management contract. Buy Build Operate (BBO) A BBO is a form of asset sale that includes a rehabilitation or expansion of an existing facility. The government sells the asset to the private sector entity, which then makes the improvements necessary to operate the facility in a profitable manner. Lease Own Operate (LOO) This approach is similar to a BOO project but an existing asset is leased from the government for a specified time. the asset may require refurbishment or expansion. Build Lease Transfer (BLT) The concessionaire builds a facility, lease out the operating portion of the contract, and on completion of the contract, returns the facility to the owner. Build Own Lease Transfer (BOLT) BOLT is a financing scheme in which the asset is owned by the asset provider and is then leased to the public agency, during which the owner receives lease rentals. On completion of the contract the asset is transferred to the public agency. Build Lease Operate Transfer (BLOT) The private sector designs finance and construct a new facility on public land under a long term lease and operate the facility during the term of the lease. the private owner transfers the new facility to the public sector at the end of the lease term. Design Build (DB) A DB is when the private partner provides both design and construction of a project to the public agency. This type of partnership can reduce time, save money, provide stronger guarantees and allocate additional project risk to the private sector. It also reduces conflict by having a single entity responsible to the public owner for the design and construction. The public sector partner owns the assets and has the responsibility for the operation and maintenance. Design Bid Build (DBB) Design bid build is the traditional project delivery approach, which segregates design and construction responsibilities by awarding them to an independent private engineer and a separate private contractor. By doing so, design bid build separates the delivery process in to the three liner phases: Design, Bid and Construction. The public sector retains responsibility for financing, operating and maintaining infrastructure procured using the traditional design bid build approach. Design Build Maintain (DBM) A DBM is similar to a DB except the maintenance of the facility for the some period of time becomes the responsibility of the private sector partner. The benefits are similar to the DB with maintenance risk being allocated to the private sector partner and the guarantee expanded to include maintenance. The public sector partner owns and operates the assets. Design Build Operate (DBO) A single contract is awarded for the design, construction and operation of a capital improvement. Title to the facility remains with the public sector unless the project is a designbuildoperatetransfer or designbuildownoperate project. The DBO method of contracting is contrary to the separated and sequential approach ordinarily used in the United States by both the public and private sectors. This method involves one contract for design with an architect or engineer, followed by a different contract with a builder for project construction, followed by the owners taking over the project and operating it. A simple design build approach credits a single point of responsibility for design and construction and can speed project completion by facilitating the overlap of the design and construction phases of the project. On a public project, the operations phase is normally handled by the public sector under a separate operations and maintenance agreement. Combining all three phases in to a DBO approach maintains the continuity of private sector involvement and can facilitate private sector financing of public projects supported by user fees generated during the operations phase. Lease Develop Operate (LDO) or Build Develop Operate (BDO) Under these partnerships arrangements, the private party leases or buys an existing facility from a public agency invests its own capital to renovate modernize, and expand the facility, and then operates it under a contract with the public agency. A number of different types of municipal transit facilities have been leased and developed under LDO and BDO arrangements. Theoretical Perspective Project Finance Strategic Business Unit A one-stop-shop of financial services for new projects as well as expansion, diversification and modernization of existing projects in infrastructure and non -infrastructure sectors Since its inception in 1995 the Project Finance SBU has built-up a strong reputation for its in-depth understanding of the infrastructure sector as well as non-infrastructure sector in India and they have the ability to provide tailor made financial solutions to meet the growing diversified requirement for different levels of the project. The recent transactions undertaken by PF- Concepts of Project Finance Concepts of Project Finance Introduction Project Finance. Origins of project finance Project financing is generally sought for infrastructure related projects. Its linkages to the economy are mutiple and complex, because it affects production and consumption directly, creates negative and positive externalities, and involves large flow of expenditure. Prior to World War I, private entrepreneurs built major infrastructure projects all over the world. During the 19th century ambitious projects such as the suez canal and the Trans-Siberian Railway were constructed, financed and owned by private companies. However the private sector entrepreneur disappeared after world War I and as colonial powers lost control, new governments financed infrastructure projects through public sector borrowing. The state and the public utility organizations became the main clients in the commissioning of public works, which were then paid for out of general taxation. After World War II, most infrastructure projects in industrialized countries were built under the supervision of the state and were funded from the respective budgetary resources of sovereign borrowings. This traditional approach of government in identifying needs, setting policy and procuring infrastructure was by and large followed by developing countries, with the public finance being supported by bond instruments or direct sovereign loans by such organizations as the world Bank, the Asian Development Bank and the International Monetary Fund. Development In the early 1980s The convergence of a number of factors by the early 1980s led to the search for alternative ways to develop and finance infrastructure projects around the world. These factors include: Continued population and economic growth meant that the need for additional infrastructure- roads, power plants, and water-treatment plants-continued to grow. The debt crisis meant that many countries had less borrowing capacity and fewer budgetary resources to finance badly needed projects; compelling them to look to the private sector for investors for projects which in the past would have been constructed and operated in the public sector Major international contracting firms, which in the mid-1970s had been kept busy, particularly in the oil rich Middle East, were, by the early 1980s, facing a significant downturn in business and looking for creative ways to promote additional projects. Competition for global markets among major equipment suppliers and operators led them to become promoters of projects to enable them to sell their products or services. Outright privatization was not acceptable in some countries or appropriate in some sectors for political or strategic reasons and governments were reluctant to relinquish total control of what maybe regarded as state assets. During the 1980s, as a number of governments, as well as international lending institutions, became increasingly interested in promoting the development for the private sector, and the discipline imposed by its profit motive, to enhance the efficiency and productivity of what had previously been considered public sector services. It is now increasingly recognized that private sector can play a dynamic role in accelerating growth and development. Many countries are encouraging direct private sector involvement and making strong efforts to attract new money through new project financing techniques. Such encouragement is not borne solely out of the need for additional financing, but it has been recognized that the private sector involvement can bring with it the ability to implement projects in a shorter time, the expectation of more efficient operation, better management and higher technical capability and, in some cases, the introduction of an element of competition into monopolistic structures. However, the private sector, driven by commercial objectives, would not want to take up any project whose returns are not consumerate with the risks. Infrastructure projects typically have a long gestation period and returns are uncertain. What then are the incentives of private capital providers to participate in infrastructure projects, which are fraught with huge risks? Project finance provides satisfactory answers to these questions. Project finance is typically defined as limited or non-recourse financing of a new project through separate incorporation of vehicle or Project Company. Project financing involves non-recourse financing of the development and construction of a particular project in which the lender looks principally to the revenues expected to be generated by the project for the repayment of its loan and to the assets of the project as collateral for its loan rather than to the general credit of the project sponsor. In other words the lenders finance the project looking at the creditworthiness of the project, not the creditworthiness of the borrowing party. Project Financing discipline includes understanding the rationale for project financing, how to prepare the financial plan, assess the risk, design the financing mix, and raise the funds. A knowledge base is required regarding the design of contractual arrangements to support project financing; issues fior the host government legislative provisions, public/private infrastructure partnerships, public/private financing structures; credit requirements of lenders, and how to determine the projects borrowing capacity; how to prepare cash flow projections and use them to measure expected rates of return; tax and accounting considerations; and analytical techniques to validate the projects feasibility. Traditional finance is corporate finance, where the primary source of repayment for investor and creditors is the sponsoring company, backed by its entire balance sheet, not the project alone. Although creditors will usually still seek to assure themselves of economic viability of the project being financed so that it is not a drain on the corporate sponsors existing pool of assets, an important influence on their credit decision is the overall strength of the sponsors balance sheet, as well as their business reputation. If the project fails, lenders do not necessarily suffer, as long as the company owning the project remains financially viable. Corporate finance is often used for shorter, less capital-intensive projects that do not warrant outside financing. The company borrows funds to construct a new facility and guarantees to repay the lenders from its available operating income and its base of assets. However private companies avoid this option, as it strains their balance sheets and capacity, and limits their potential participation in future projects. Project financing is different from traditional forms of finance because the financier principally looks to the assets and revenue of the project in order to secure and service the loan. In project finance a team or consortium of private firms establishes a new project company to build, own and operate a separate infrastructure project. The new project company to build own and operate a separate infrastructure project. The new project company is capitalized with equity contributions from each of the sponsors. In contrast to an ordinary borrowing situation, in a project financing the financier usually has little or no recourse to the non-project assets of the borrower or the sponsors of the project. The project is not reflected in the sponsors balance sheets. Extent of recourse Recourse refers to the right to claim a refund from another party, which has handled a bill at an earlier stage. The extent of recourse refers to the range of reliance on sponsors and other project participants for enhancement to protect against certain projects risks. In project financing there is limited or no recourse. Non-recourse project finance is an arrangement under which investors and credit financing the project do not have any direct recourse to the sponsors. In other words, the lender is not permitted to request repayment from the parent company if borrower fails to meet its payment obligation. Although creditors security will include the assets being financed, lenders rely on the operating cash flow generated from those assets for repayment. When the project has assured cash flows in the form of a reliable off taker and well-allocated construction and operating risks, the lenders are comfortable with non-recourse financing. Lenders prefer limited recourse when the project has significantly higher risks. Limited recourse project finance permits creditors and investors some recourse to the sponsors. This frequently takes the form of a precompletion guarantee during a projects construction period, or other assurance of some form of support for the project. In most developing market projects and in other projects with significant construction risk, project finance is generally of the limited recourse type. Merits and Demerits of Project Financing: Project financing is continuously used as a financing method in capital-intensive industries for projects requiring large investments of funds, such as the construction of power plants, pipelines, transportation systems, mining facilities, industrial facilities and heavy manufacturing plants. The sponsors of such projects frequently are not sufficiently creditworthy ot obtain tr5aditional financing or unwilling to take the risk and assume the debt obligation associated with traditional financing. Project financing permits the risk associated with such projects to be allocated among number of parties at levels acceptable to each party. The advantages of project financing are as follows: 1. Non-recourse: The typical project financing involves a loan to enable the sponsor to construct a project where the loan is completely â€Å"Non-recourse† to the s[sponsor i.e. the sponsor has no obligation to make payments on the project loan if revenues generated by the project are insufficient to cover the principle and interest payable on the loan. This safeguards the assets of sponsors. The risks of new projects remain separate from the existing business. 2. Maximizes leverage: In project financing. The sponsors typically seek to finance the cost of development and construction of project on highly leverage basis. Frequently such costs are financed using 80 to 100 percent debt. High leverage in an non recourse financing permits a sponsor to put less in funds at risk, permits a sponsor to finance a project without diluting its equity investment in the project and in certain circumstances, also may permit reduction in cost of capital by substituting lower cost, tax deductible interest for higher cost, taxable return on equity. 3. Off balance sheet treatment: Depending upon the structure of project financing the project sponsors may not be required to report any of the project debt on its balance sheet because such debt is non recourse or of limited recourse to the sponsor. Off balance sheet treatment can have the added practical benefit of helping the sponsor comply with convenient and restrictions related to the board. Borrowings funds contain in other indentures and credit agreements to which the sponsor is a party. 4. Maximizes tax benefits: Project finance is generally structured to maximize tax benefit and to assure that all available tax benefit are used by the sponsors or transferred to the extent possible to another party through a partnership, lease or vehicle. 5. Diversifies risk: By allocating the risk and financing need of the projects among a group of interested parties or sponsors, project financing makes it possible to undertake project that would be too large or would pose too great a risk for one party ion its own. Demerits: 1. Complexity of risk allocation: Project financing is complex transaction involving many participants with diverse interest. If a project is to be successful risk must be allocated among the participants in an economically efficient way. However, there is necessary tension between the participants. For e.g between the lender and the sponsor regarding the degree of recourse, between the sponsor and contractor regarding the nature of guarantees., etc which may slow down the realization of the project. 2. Increase transaction cost: It involves higher transaction costs compared to other types of transactions, because it requires an expensive and time-consuming due diligence conducted by the lenders lawyer, the independent engineers etc., since the documentation is usually complex and lengthy. 3. Higher interest rates and fees: The interest rates and fees charged in project financing are higher than on direct loan made to the project sponsor since the lender takes on more risk. 4. Lender supervision: In accordance with a higher risk taken in project financing the lender imposes a greater supervion on the mangement and operation of the project to make sure that the project success is not impaired. The degree of lender supervision will usually result into higher costs which will typically have to be borne by the sponsor. Whether expanding manufacturing facilities, implementing new processing capabilities, or leveraging existing assets in new markets, innovative financing is often at the core of long-term projects to transform a companys operations. Akin to the underlying corporate transformation, the challenge with innovative financial structures such as project finance is that the investment is made upfront while the anticipated benefits of the initiative are realized years later. There has been a rise in number of companies that need innovative financing to satisfy their capital needs, in a significant number of instances they have viable goals but find that traditional lenders are unable to understand their initiatives. And so the need emerged for project finance. Project financing is a specialized form of financing that may offer some cost advantages when very large amounts of capital are involved It can be tricky to structure, and is usually limited to projects where a good cash flow is anticipated. Project finance can be defined as: financing of an industrial (or infrastructure) project with myriad capital needs, usually based on non-recourse or limited recourse structures, where project debt and equity (and potentially leases) used to finance the project are paid back from the cash flow generated by the project, with the projects assets, rights and interests held as collateral. In other words, its an incredibly flexible and comprehensive financing solution that demands a long-term lending approach not typical in todays market place. Whether expanding manufacturing facilities, implementing new processing capabilities, or leveraging existing assets in new markets, innovative financing is often at the core of long-term projects to transform a companys operations. Akin to the underlying corporate transformation, the challenge with innovative financial structures such as project finance is that the investment is made upfront while the anticipated benefits of the initiative are realized years later. Infrastructure is the backbone of any economy and the key to achieving rapid sustainable rate of economic development and competitive advantage. Realizing its importance governments commit substantial portions of their resources for development of the infrastructure sector. As more projects emerge getting them financed will continue to require a balance between equity and debt. With infrastructure stocks and bonds being traded in the markets around the world, the traditionalist face change. A country on the crest of change is India. Unlike many developing countries India has developed judicial framework of trust laws, company laws and contract laws necessary for project finance to flourish. Types of Project Finance Build Operate Transfer (BOT) Build Own Operate Transfer (BOOT) Build Own Operate (BOO) Build Operate Transfer Build operate transfer is a project financing and operating approach that has found an application in recent years primarily in the area of infrastructure privatization in the developing countries. It enables direct private sector investment in large scale infrastructure projects. In BOT the private contractor constructs and operates the facility for a specified period. The public agency pays the contractor a fee, which may be a fixed sum, linked to output or, more likely, a combination of the two. The fee will cover the operators fixed and variable costs, including recovery of the capital invested by the contractor. In this case, ownership of the facility rests with the public agency. The theory of BOT is as follows:- BUILD A private company (or consortium) agrees with a government to invest in a public infrastructure project. The company then secures their own financing to construct the project. Operate The private developer then operates, maintains, and manages the facility for a agreed concession period and recoups their investment through charges or tolls. Transfer- After the concessionary period the company transfers ownership and operation of the facility to the government or relevant state authority. In a BOT arrangement, the private sector designs and builds the infrastructure, finances its construction and operates and maintains it over a period, often as long as 20 or 30 years. This period is referred to as the â€Å"concession† period. In short, under a BOT structure, a government typically grants a concession to a project company under which the project company has the right to build and operate a facility. The project company borrows from the lending institutions in order to finance the construction of the facility. The loans are repaid from â€Å"tariffs† paid by the government under the off take agreement during the life of the concession. At the end of the concession period the facility is usually transferred back to the government. Advantages The Government gets the benefit of the private sector to mobilize finance and to use the best management skills in the construction, operation and maintenance of the project. The private participation also ensures efficiency and quality by using the best equipment. BOT provides a mechanism and incentives for enterprises to improve efficiency through performance-based contracts and output-oriented targets The projects are conducted in a fully competitive bidding situation and are thus completed at the lowest possible cost. The risks of the project are shared by the private sector Disadvantages There is a profit element in the equity portion of the financing, which is higher than the debt cost. This is the price paid for passing of the risk to the private sector It may take a long time and considerable up front expenses to prepare and close a BOT financing deal as it involves multiple entities and requires a relatively complicated legal and institutional framework. There the BOT may not be suitable for small projects It may take time to develop the necessary institutional capacity to ensure that the full benefits of BOT are realized, such as development and enforcement of transparent and fair bidding and evaluation procedures and the resolution of potential disputes during implementation. Build Own Operate Transfer (BOOT) A BOOT funding model involves a single organization, or consortium (BOOT provider) who designs, builds, funds, owns and operates the scheme for a defined period of time and then transfers this ownership across to a agreed party. BOOT projects are a way for governments to bundle together the design and construction, finance, operations and maintenance and potentially marketing and customer interface aspects of a project and let these as a package to a single private sector service provider. The asset is transferred back to the government after the concession period at little or no cost. The Components of BOOT. B for Build The concession grants the promoter the right to design, construct, and finance the project. A construction contract will be required between the promoter and a contractor. The contract is often among the most difficult to negotiate in a BOOT project because of the conflict that increasingly arises between the promoter, the contractor responsible for building the facility and those financing its construction. Banks and other providers of funds want to be sure that the commercial terms of the construction contract are reasonable and that the construction risk is placed as far as possible on the contractors. The contractor undertakes responsibility for constructing the asset and is expected to build the project on time, within budget and according to a clear specification and to warrant that the asset will perform its design function. Typically this is done by way of a lump-sum turnkey contract. O for Own The concession from the state provides concessionaire to own, or at least possess, the assets that are to be built and to operate them for a period of time: the life of the concession. The concession agreement between the state and the concessionaire will define the extent to which ownership, and its associated attributes of possession and control, of the assets lies with the concessionaire. O for Operate An operator assumes the responsibility for maintaining the facilitys assets and the operating them on the basis that maximizes the profit or minimizes the cost on behalf of the concessionaire and, like the contractor undertaking construction and be a shareholder in the project company. The operator is s often an independent through the promoter company. T for Transfer This relates to a change in ownership of the assets that occurs at the end of the concession period, when the concession assets revert to the government grantor. The transfer may be at book value or no value and may occur earlier in the event of failure of concessionaire. Stages of Boot Project Build Design Manage project implementation Carry out procurement Finance Construct Own Hold in interest under concession Operates Mange and operate facility Carry out maintenance Deliver products/services Receive payment for product/ service Transfer Hand over project in operating condition at the end of concession period Advantages The majority of construction and long term risk can be transferred onto the BOOT provider. The BOOT operator can claim depreciation on the facility constructed and depreciation being a tax-deductible expense shareholder returns are maximized. Using an output based purchasing model, the tender process will encourage maximum innovations allowing the most efficient designs to be explored for the scheme. This process may also be built into more traditional tendering processes. Accountability for the asset design, construction and service delivery is very high given that if the performance targets are not met, the operator stands to lose a portion of capital expenditure, capital profit, operating expenditure and operating profit. Boot operators are experienced with management and operation of infrastructure assets and bring these skills to scheme. Corporate structuring issues and costs are minimal within a BOOT model, as project funding, ownership and operation are the responsibility of the BOOT operator. These costs will however be built into the BOOT project pricing. Disadvantages Boot is likely to result in higher cost of the product/ service for the end user. This is a result of the BOOT provider incurring the risks associated with 100 percnet financing of the scheme and the acceptance of the ongoing maintenance liabilities. Users may have a negative reaction to private sector involvement in the scheme, particularly if the private sector is an overseas owned company Management and monitoring of the service level agreement with the BOOT operators can be time consuming and resource hungry. Procedures need to be in place to allow users to assess service performance and penalize the BOOT operator where necessary. A rigorous selection process is required when selecting a boot partner. Users need to be confident that the BOOT operator is financially secure and sufficiently committed to the market prior to considering their bid. Build Own Operate In BOO, the concessionaire constructs the facility and then operates it on behalf of the public agency. The initial operating period {over which the capital cost will be recovered} is defined. Legal title to the facility remains in the private sector, and there is no obligation for the public sector to purchase the facility or take title. The private sector partner owns the project outright and retains the operating revenue risk and all of the surplus operating revenue in perpetuity. As an alternative to transfer, a further operating contract {at a lower cost} may be negotiated. Design Build Finance Operate (DBFO): Under this approach, the responsibilities fro designing, building, financing and operating are bundled together and transferred to private sector partners. They are also often supplemented by public sector grants in the from of money or contributions in kind, such as right of way. In certain cases, private partners may be required to make equity investments as well. DBFO shifts a great deal of the responsibility for developing and operating to private sector partners, the public agency sponsoring a project would retain full ownership over the project. Others: Build Transfer Operate (BTO) The BTO model is similar to BOT model except that the transfer to the public owner takes place at the time that construction is completed, rather than at the end of the franchise period. The concessionary builds and transfers a facility to the owner but exclusively operates the facility on behalf of the owner by means of management contract. Buy Build Operate (BBO) A BBO is a form of asset sale that includes a rehabilitation or expansion of an existing facility. The government sells the asset to the private sector entity, which then makes the improvements necessary to operate the facility in a profitable manner. Lease Own Operate (LOO) This approach is similar to a BOO project but an existing asset is leased from the government for a specified time. the asset may require refurbishment or expansion. Build Lease Transfer (BLT) The concessionaire builds a facility, lease out the operating portion of the contract, and on completion of the contract, returns the facility to the owner. Build Own Lease Transfer (BOLT) BOLT is a financing scheme in which the asset is owned by the asset provider and is then leased to the public agency, during which the owner receives lease rentals. On completion of the contract the asset is transferred to the public agency. Build Lease Operate Transfer (BLOT) The private sector designs finance and construct a new facility on public land under a long term lease and operate the facility during the term of the lease. the private owner transfers the new facility to the public sector at the end of the lease term. Design Build (DB) A DB is when the private partner provides both design and construction of a project to the public agency. This type of partnership can reduce time, save money, provide stronger guarantees and allocate additional project risk to the private sector. It also reduces conflict by having a single entity responsible to the public owner for the design and construction. The public sector partner owns the assets and has the responsibility for the operation and maintenance. Design Bid Build (DBB) Design bid build is the traditional project delivery approach, which segregates design and construction responsibilities by awarding them to an independent private engineer and a separate private contractor. By doing so, design bid build separates the delivery process in to the three liner phases: Design, Bid and Construction. The public sector retains responsibility for financing, operating and maintaining infrastructure procured using the traditional design bid build approach. Design Build Maintain (DBM) A DBM is similar to a DB except the maintenance of the facility for the some period of time becomes the responsibility of the private sector partner. The benefits are similar to the DB with maintenance risk being allocated to the private sector partner and the guarantee expanded to include maintenance. The public sector partner owns and operates the assets. Design Build Operate (DBO) A single contract is awarded for the design, construction and operation of a capital improvement. Title to the facility remains with the public sector unless the project is a designbuildoperatetransfer or designbuildownoperate project. The DBO method of contracting is contrary to the separated and sequential approach ordinarily used in the United States by both the public and private sectors. This method involves one contract for design with an architect or engineer, followed by a different contract with a builder for project construction, followed by the owners taking over the project and operating it. A simple design build approach credits a single point of responsibility for design and construction and can speed project completion by facilitating the overlap of the design and construction phases of the project. On a public project, the operations phase is normally handled by the public sector under a separate operations and maintenance agreement. Combining all three phases in to a DBO approach maintains the continuity of private sector involvement and can facilitate private sector financing of public projects supported by user fees generated during the operations phase. Lease Develop Operate (LDO) or Build Develop Operate (BDO) Under these partnerships arrangements, the private party leases or buys an existing facility from a public agency invests its own capital to renovate modernize, and expand the facility, and then operates it under a contract with the public agency. A number of different types of municipal transit facilities have been leased and developed under LDO and BDO arrangements. Theoretical Perspective Project Finance Strategic Business Unit A one-stop-shop of financial services for new projects as well as expansion, diversification and modernization of existing projects in infrastructure and non -infrastructure sectors Since its inception in 1995 the Project Finance SBU has built-up a strong reputation for its in-depth understanding of the infrastructure sector as well as non-infrastructure sector in India and they have the ability to provide tailor made financial solutions to meet the growing diversified requirement for different levels of the project. The recent transactions undertaken by PF-

Elementary School and Middle School Essay

Transitioning from elementary school to middle school is something we all have or had to do! Most kids cringe at the thought of making this huge step in life. For many students this transition can be a time of mixed emotions. Having been through this experience, I will compare and contrast the two, hoping that this will give you a clear picture of elementary and middle school. Elementary and middle school have distinguishable characteristics. In elementary schools, you basically have your homeroom teacher and one other teacher. The movement of students is very limited and you are mostly escorted by a teacher. Teachers are more understanding and are not as demanding because of the student’s age. Fun days are set aside as an award for students that have done what is expected of them. Most of the children are placed in classroom with the same students each year. Elementary school is very important in our young student’s lives; this is where it all starts. However, middle school students are expected to execute their daily tasks without assistance. Teachers are there to direct the students in right direction; everything else is left up to the student. Middle school students have several different classes, in each class it is usually a different teacher. Students have lockers to store their books and other supplies. In middle school students are required to be more independent and serious about school. Elementary school set the pace for all other levels of schooling. Students enter elementary school learning all the basic aspects of school system and the learning process. At this stage in life most students are eager to learn and get excited to learn new things. Elementary is the main point of delivery, it introduces social skills, behavioral adjustments, and basic academic learning. Middle school prepares students for higher education. Ultimately, middle school bridges the gap between elementary and high school. It is definitely a different experience than elementary, but it prepares students for their future and encourages them to be more independent. Elementary schools and middle schools also have common qualities. They are both open Monday through Friday on the same days. Each day students eat lunch at a designated time. All students are expected to sit in desks in an appropriate manner. Teachers require students to be respectful and display good behavior at all times. Homework is given on a daily basis and class discussions are routine also. School is essentially school with minor differences. Each school level has its own pro’s and con’s, they are also very similar. They each have their own benefiting factors and they are used to their advantage. School systems up this way because it is initially what works in our culture. Elementary and middle schools are stepping stones that that help us get from one place to another in our academic life. Each level is an important standpoint for academic excellence and they should be taken seriously so that you can be an effective student/learner.

Defining Abnormality †Towards a definition Essay

The statistical approach is based on the idea that certain behaviours are statistically rare in the population. If you measure any type of human behaviour you should find that people with varying degrees of the behaviour are normally distributed around the mean. For example there are a lot of people who are of average height but few people who are very small. If we plot a graph of for example IQ scores, It is bell shaped. The majority of individuals are clustered around the mean (the curves highest point). The further you go away from the mean, the fewer people there are. Problems Desirability-some statistically infrequent behaviours, e.g. being a genius are desirable. Cut-off point-who decides at what point you are to be considered abnormal? Statistical Definitions-The Same standards or norms are not relevant to all social groups/ ages/cultures for example in terms of anxiety. Children have more irrational fears than adults. Deviation from social norms Social norms are behaviours that are desirable for both the individual and society as a whole. Deviance from social norms is both undesirable and abnormal. Most mentally Ill people do behave in a socially deviant way but this doesn’t mean that you can base clinical abnormality on this theory alone. Moral standards-social norms change over time and basing mental illness on deviation from social norms is dangerous. Context-for example, wearing few items of clothing on the beach is acceptable, on the high street it is not. Sub Cultures-for example in the Mormon religion it is acceptable to have several wives. In England that is a crime called bigamy Good/Bad-in some certain circumstances being socially deviant is a good thing for example in Nazi Germany people who were opposed to Nazism were socially deviant. Collectivistic cultures-cultures which emphasise the greater good of the community rather than focusing on individual achievement would not find the first three characteristics relevant. Difficult-most people would have difficulty fitting all these criteria at most times in their lives. Cultural relativism A limitation to all ways of defining abnormality is that no definition is relevant to all cultures. Also cultures definitions change over time. For example Homosexuality was considered to be a mental disease till the 80’s.

Aids Essays (485 words) - HIVAIDS, Pandemics, HIV, HIVAIDS In Africa

Aids Essays (485 words) - HIVAIDS, Pandemics, HIV, HIVAIDS In Africa Aids AIDS: Acquired Immune Deficiency Syndrome HIV and Aids affect more than roughly thirty million people worldwide. Race, sex and age have nothing to do with who can get this disease, however, the race with the highest number of infected people happens to be Caucasian males ages 25-44. About forty-five percent of the 641,000 AIDS cases in the U.S. have been white people. Blacks arent far behind with over 35 percent of cases, and Hispanics have about 20 percent of all cases. Asians have less than anyone does, with 1 percent. Of the estimated 30.6 million people worldwide living with this horrible, life-threatening disease in 1997, about 68 percent were living in sub-Saharan Africa. 22 percent of all cases were in Southern and Eastern Asia and the Pacific, 4 percent in Latin America, 5 Percent in North America and the Caribbean, and 2 percent in Europe and Central Asia. In 1994 and 1995 AIDS was the leading cause of death among Americans ages 25-44 years old. It was also the leading cause of death for men in the same age group an d the third leading cause of death in women 25-44. Adult males are the leading sex to contract AIDS. They account for over 80 percent of all cases in the U.S. Adult women make up 15 percent and children make up the other 1- percent of the cases. (Encarta 99) People have been lead to believe so many fictional stories about the ways of contracting AIDS and HIV; its hard to know what to believe. The truth is, the main way of getting this disease is unprotected sex. Although condoms do work most of the time, they are not 100% effective. Abstinence is the only foolproof way of not being infected with this disease or one of the thousands of others. Besides sexual contact with a person carrying the AIDS virus or HIV, you can also be infected in many different ways. For example, although no one has actually contracts AIDS from contact with these things, HIV has been found in sweat, saliva and tears. People who are unsure about the AIDS status of their partner should actually be weary of kis sing them. There has not yet been a case attributed to kissing, however, there is still a potential for contraction. For awhile now there have been rumors of transmission by insects that suck blood and bite humans. Studies have shown no evidence of this, but the rumors are still claiming it could happen. Scientists and researchers have preformed experiments after experiments because of the overwhelming concern. They all have proved there is no cause to fear insects such as mosquitoes, because in HIV carriers dont have constant high levels of HIV in their bloodstream. Another reason is that an insect mouth parts dont hold large enough amounts of blood to transmit the disease. Bibliography Encarta 1999

Essay on Ethics Human Rights and Child

Essay on Ethics Human Rights and Child Essay on Ethics: Human Rights and Child Ethics of Working with Children and Young People. Case Study. The author’s setting is a Special Needs school which houses around 75 pupils some full and part time students. The students have a range of different special needs from Profound Multiple Learning difficulties, Autism, Behavioural Difficulties and Global Delay. The town, to which the author works, ranks highly in the national scale of depravation with a high proportion of free school meals. According to the (Office of National Statistics 2011) 11.4% of men and women at working age are unemployed the average for the North East is 10% whereas the rest of England reads at 7.9%, this information was taken from Jul 09- Jun 10 it shows that Hartlepool has the highest unemployment rate. According to the (Department for Education 2011), State Funded Primary Schools in Hartlepool had 22.7% of children receiving free school meals against 8.4% of children receiving free school meals in York. Special Schools in Hartlepool had a percentage of 40.1 of children receiving free school meals aga inst 20.1% in York. The authors setting has a number of children who come from affluent homes however the majority of children come from either single parent families or are looked after children. The child the author will use for her case study will be known as Child A for confidentiality purposes. Child A lives at home with both parents who are alcohol and methadone dependant along with three siblings. Child A has had several places of residence within the town and surrounding areas. The author and her colleagues are aware Child A sleeps on the floor as parents can’t afford new mattresses. Child A regularly comes into school in a dirty and unkempt condition, smelling breath and clothes. It is very apparent especially on a Monday that the child has not had his uniform washed or had his breakfast which is the case most mornings and he seems withdrawn and very tired. Child A finds it very hard to concentrate when in most morning lessons however it has been noticed that the child functions better on an afternoon. In the above scenario there are several factors to be considered when caring for Child A. A number include parents who are substance dependant, lack of cleanliness, regarding the child’s appearance and clothing, inappropriate sleeping arrangements, an unstable home environment and lack of nourishment and concentration and withdrawal when in the school environment. All of the aforementioned factors are some concern to the organisation to which the author belongs. The author will examine her work place policy and policies set by governing bodies which cover the rights to every child and will define the key ethical issues and propose a reasoned solution which will include work colleagues and partners. (The United Nations Convention on the Rights of the Child 2012) (UNCRC) is presently the most widely ratified international human rights treaty. It is the only international human rights treaty to include civil, political, economic, social and cultural rights. It sets out in detail what every child needs to have a safe, happy and fulfilled childhood regardless of their sex, religion, social origin, and where and to whom they were born. The setting to which the author belongs has a policy which states children who would like breakfast need to pay twenty pence per day. The author is very aware of this rule, however as the author knows the child, and its background of depravation, she has an ethical decision to make, whether or not the child should be given breakfast or not as he can’t pay for it. Kant would suggest that the individual child should not have breakfast as he has not brought any money into class. According to Kant the author would be breaking the rules by giving Child A breakfast which contradicts senior managements guidance. Whereas Rawls would look at the child’s circumstances and use his ‘justice as fairness’ theory and decide that Child A should have the

Matisses Dance Essay Example | Topics and Well Written Essays - 3000 words

Matisses Dance - Essay Example Henri Matisse received an important commission in 1909 from Sergei Shchukin, who was a wealthy Russian industrialist. Shchukin asked Matisse to pain three large scale canvases that would be used to decorate the spiral staircase of his Trubetskoy palace Mansion located in Moscow. After the Russian revolution of 1917, these panels were obtained by the Hermitage. the Large and well loved painting Dance 1 is considered to be rather disingenuously titled and although it is essentially a full scale in oil, of interest is that Matisse did not initially consider it to be more than a preparatory sketch (Rubin & Matisse, 2008). Henri Matisse was already an established law clerk in Paris when he began to keenly follow his interest in art and painting. He conducted an intense study of the works of some of the post-impressionistic painters such as Paul Cezanne before he and some of his contemporaries went on to create what was dubbed as the Fauvism movement. The Fauvism movement was their perception of the post-impressionistic era. However, this movement lasted for a relatively very short duration and its signature brush strokes eventually disappeared from Matisse’s work which later on went to encompass the Cubist movement style. The Dance 1 painting is considered to be one of the most noteworthy pieces that Matisse was able to produce during his Fauvism period (Zibas, 2011).

Starkey HR Ltd Essay Example | Topics and Well Written Essays - 1750 words

Starkey HR Ltd - Essay Example Redundancies should be a matter of last resort. Starkey must initially make efforts to identify the employees with special skills and experience and retain them. Reducing working time, pay cut, temporary leaves, less dependence on casual staff are some of the desirable measures. If redundancies are inevitable, a voluntary redundancy scheme should be employed. The offers of the scheme should be clearly outlined and sent to all applicable employees. In case of forced redundancies, the method of selection should be fair and non-discriminatory that takes the expertise and experience into consideration.Redundancy is enhanced in companies where statutory entitlements are low. The redundancy packages in most EU countries are quite high in comparison to the UK with a few exceptions such as the Netherlands and France. The average redundancy pay in the EU is more than twice the amount paid by employers in the UK. Under EU regulation, workers are supposed to be informed and consulted in any cas e of redundancies. Additionally, companies need to determine a threshold level for the redundancy and are determined by the size of the workforce and number of required redundancies.Forecasting allows a business to create and modify the financial and promotional strategy of a company in addition to allowing it to keep track of the performance of all requisite parameters, which play a crucial role in decision making and implementing the required changes to existing strategy.