How Investors Encounter Political Risk In Project Finance Finance Essay - Free Essay Example

Sample details Pages: 5 Words: 1602 Downloads: 5 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? Project Finance is a long term project which needs political will of the governments. It is a long term investment which needs political motivation as well as the continuation of the economic policies of the government. The governments adopts project finance for the provision of public infrastructure through PPPS. The success or failure of project finance has severe political consequences. It is difficult to made or run any project finance without any political support. For example a project finance agreement between a state owned power company and a project company for the construction of power station can not be possible unless the top management of the official company decides that the project is in their interest. The break through can only be possible when there is a strong direction of the government. Don’t waste time! Our writers will create an original "How Investors Encounter Political Risk In Project Finance Finance Essay" essay for you Create order Political support is needed from initiating the project till the completion of the project. Financers need to take steps for the alleviation of political risks before providing any finance to the project. There are three classes or groups of political risks which includes investment risks and investment risks includes Currency convertibility and transfer, expropriation of the project by the state and political violence. Political risk in project finance also includes the change of law which means legislative, judiciary or executive can take a decision in which laws are changed which includes new import export restrictions, changes in environmental law, and new tax regulations. Quasi-Political Risks includes breach of contract and court decisions. Project financers and sponsors can reduce political risk by signing an investor friendly agreement between the sponsor and the government. Political risk can be reduced through the risk insurance through the insurance companies present in the private sector. Companies should also take legislative protection by signing an agreement with the government that any change of law will not affect the terms and conditions of the government. Government should gave permission to the company that there is no restriction on the company if it will take loan from the private sector. After the 9/11 incident in America there were claims of billions of dollars which insurance companies had to pay to the claimants of world trade center. So now it is difficult to buy any risk insurance policy because now insurance company is selling terrorism insurance policy. The problem is that terrorist activities in the world is increasing and now no company is ready to take the risk. In the thirld world counteries financing of large projects wrere managed by the governments. In thirld world counteries most projects were given on Built, Operate and Transfer basis. Governments gave such type of projects to the companies in which they dont want to involve due to some reasons which includes pessure from international organizations, local pressures and environmental issues. Economic benefits of project finance includes a secured loan to the sponsor secured by the project assets would normally give lenders recourse to sponsors assets in addition to project assets in the event of default. At the same time, depending on applicable insolvency laws, a secured lenders claim over the project assets may be subordinated to the claims of other creditors of the sponsor. Project finance is typically used for projects in infrastructure and extractive industries, including ,mines, water and sewage systems, power plants, energy transmission systems, pipelines, roads, railways, airports, ports. Project finamnce has a social, economic and political impact on the host society. Many large projects promote the economic development of the host country by providing employment, profits and technology transfer for local suppliers, tax revenue for the state, and, in some cases, additional goods or services for local customers. However, the operation of projects that make use of project financing may also have adverse effects in the host society. For instance, many of the projects listed above can result in environmental pollution or displacement of residents. In addition, where the project creates a monopoly over the production of locally-consumed goods or services, such as electricity, water or transportation, local consumers may be prejudiced by exploitative pricing policies. Projects that generate revenues from overseas can also be associated with adverse economic or political effects within the host state. Economic effects of project finance is that it gives a a large boost in exports, the result may be that the host nations currency will appreciate in value. Generally, an appreciation of this sort makes a nations other exports less competitive, as foreign buyers essentially must pay a higher price for them. It also gave boost to the real estate. This can be problematic if manufacturing is more likely to contribute to growth than other industries.Governments can take proactive steps to reduce these effects (known as the Dutch Disease), such as investing certain amounts of money overseas so as to avoid driving up either the currency or the price level and thereby crowding out non-resource exports. Political effects includes more access a state has to cashflows from export-oriented projects the less dependent it is on tax revenues or foreign financiers. This makes governments less accountable to external constituencies and can undermine their incentives to govern soundly. States sometimes respond to these concerns by adopting special laws that govern how revenues from projects are to be spent. This strategy is particularly common among oil-producing countries. Usually the proceeds from projects are put into special funds that serve specific purposes, such as investing in education or simply to serve as reserve for a future time when revenues are inadequate. The international community has responded to these concerns by promoting transparency in financial transactions between states that host lucrative export-oriented projects and foreign companies. For instance, the Publish What You Pay coalition of over 300 NGOs worldwide calls for the mandatory disclosure of the payments made by oil, gas and mining companies to all governments for the extraction of natural resources. The coalition also calls on resource-rich developing country governments to publish full details on revenues. Advocates of the movement argue that transparency will place pressure on governments to use the revenues from projects to more effectively promote economic growth. The World Bank has endorsed this strategy by adopting its Extractive Industries Transparency Initiative. In project finance there is a role of project agreements. The project documents serve to allocate risks amongst the parties involved the transaction. From a commercial perspective, the most important risks are the following completion risk, operating risk, resource risk (availability of inputs), market risk/currency risk (value of outputs), political risk (state actions that affect revenues). The social, economic, and political implications of projects are influenced by a variety of bodies of law.Projet finance investors need to follow the host state regulation of foreign investment. Countries have laws that limit foreign investment in various sectors or only permit it at the discretion of government officials. Many states are subject to international obligations that limit their ability to regulate foreign investment. The sources of those obligations include agreement on Trade-Related Investment Measures (TRIMs), general Agreement on Trade in Services (GATS) , bilateral Investment Treaties (BITs) and regional agreements such as the North American Free Trade Agreement (NAFTA), many multilateral organizations discourage countries from adopting restrictions on foreign investment. Many enders require the projects they support to meet social and environmental standards that are independent of any binding legal obligations. A significant number of private project finance lenders have endorsed the Equator Principles, which commit them to ensure that the projects they support meet social and environmental standards set by the International Finance Corporation to guide its own operations. Methods of enforcing these obligations vary. For instance, some of the ultilateral financial institutions have established ombudsmen or quasi-judicial bodies charged with overseeing compliance with their operational policies. While making a contract law in public policy there are few concerns which include enforceability of stipulated damages clauses, enforceability of choice of law, choice of forum and arbitration clauses, enforceability of obligations in the hands of assignees, recognition of foreign judgments and arbitral wards. Concerns like domestic laws that that affect the value of the project to its investors and sponsors. Projects typically implicate a broad range of domestic laws of general application, including, immigration laws. Many projects will require professionals with specific technical skills to be on site. Often such labor cannot be supplied domestically and must be brought in from elsewhere, environmental and safety laws, tax laws, currency controls. Changes in these laws, or outright physical expropriation, can seriously impair the value of the project to investors and sponsors. Projects are often designed to minimize the host states incentive to take such action. Staging the investment, withholding critical technology, or involving actors such as official creditors or political risk insurers who can threaten to cut off future dealings with the state are all ways of creating disincentives to expropriate. Sponsors and financiers of large projects often obtain agreements that require the host state to exempt them from specified domestic laws or to provide compensation for changes in the law. (Provisions designed to insulate foreign investors from the effects of changes in the law are sometimes referred to as stabilization clauses.) International legal obligations such as customary international law and the provisions of Bilateral Investment Treaties (BITs) limit host states ability to expropriate the assets of foreign investors or otherwise treat them unfairly, including by reneging on agreements designed to insulate them from the effects of domestic law. Many commentators are concerned that these sorts of international obligations place undue restrictions on host states ability to adopt socially beneficial laws.

Essay on History of Response to Intervention - 784 Words

History of Response to Intervention Response to Intervention (RtI) came about initially in answer to the over-identification of struggling students as special education students. It was developed starting in the late 1970s by numerous researchers seeking a method of identifying learning disabilities that avoids the problems of the discrepancy model. Many educators were concerned that too many students were being identified as having a learning disability, not because they actually had one, â€Å"but because they had not been successful in a general education program† (Prasse, 2010). Many were also concerned that students with a true learning disability were not receiving the help they needed quickly enough. Before RtI, the accepted†¦show more content†¦Indeed, some research indicates that if a child who reads slowly has IQ scores that are above average, that child might receive services under IDEA based on the discrepancy between the IQ scores and the reading ability. On the other hand, another child who also reads slowly but has IQ scores that are average may not receive any services because of the lack of a significant discrepancy. Such approaches to assessment may clearly result in some children who need services not getting them while others who do not need them will receive them† (Pasternack, 2002). Based on the testimony of Dr. Pasternack and others, a statute was added to the 2004 IDEIA requiring school districts to use some form of scientifically based research to guide intervention decisions. RtI was recognized as one option that school districts can use to identify students with learning disabilities. The federal law states: When determining whether a child has a specific learning disability as defined in  § 602 (29), a local educational agency shall not be required to take into consideration whether a child has a severe discrepancy between achievement and intellectualShow MoreRelatedThe And Implementation Of Rapid Response Teams1470 Words   |  6 Pagesthat must be assessed and reviewed routinely to identify the dysfunctions or parts that are in need of intervention. It is the job of nurses, doctors and other healthcare professionals to recognize and communicate when there is a need for change or improvement in order for patients to receive the highest standard of care and optimal health outcomes. The creation and implementation of Rapid Response Teams were one of the many strategies initiated in the 100,000 Lives Campaign (2004) instituted by theRead MoreThe Sampling Approach1154 Words   |  5 Pagesdesign is: experimental treatment pretest-posttest comparison design. After the participants are randomly selected for one of the four groups (one to receive PE, one to receive CPT, one to receive both PE and CPT, and one that does not receive an intervention), they are then administered the Posttraumatic Cognitions Inventory scale (Foa et al., 1999). The Posttraumatic Cognitions Inventory scale is used to measure PTSD symptoms, including frequency of dissociative reactions, recurrent distressing dreamsRead MoreFunction of a School Psychologist898 Words   |  4 Pagesunique view of where the field has been based on its history, and where it is currently. Perhaps most importantly, they have a view of where the field should change for the future based on the results of research . Tilley suggests that â€Å"special education structures have remained fixed for more than 30 years† (2008, p. 23) and raises the question of how school psychology can more to a problem solving model in this â€Å"fixed† environment. In response to his own question, he finds a difference betweenRead MoreResponse to Intervention1095 Words   |  5 PagesResponse to Intervention This paper focuses on the Response to Intervention. As educators we are hearing RTI more frequently in the school districts than ever before. Many educators and state officials agree that all teachers should know and get to know the benefits and importance of RTI. The most crucial aspect to know is the RTI takes place into the regular childhood classroom; this is not something that just special education teachers need to know. This paper explains the purpose and a briefRead MoreThe Rights Of Human Rights1211 Words   |  5 Pagesthe interactions between the different nations, and the response concluded from the international institution, like the United Nations. As evident through the events in Rwanda, all members of the United Nation Security Council expressed their concerns and sadness about the human rights abuses in Rwanda by the Rwandan government, yet, when debating on the course of action, only a minority of the members actually supported humanitarian intervention in Rwanda . The violations on the principle of human rightsRead MoreThe Study Of Operant Learning944 Words   |  4 Pagesreinforcement history, and this will be discussed in the context of the application of extinction to modify maladaptive or undesirable behaviors. Bedtime non-compliance is a common childhood behaviour problem that is characterised by whining, crying, and tantrums approaching bedtime, refusal to go to bed and frequent night waking (Ortiz McCormick, 2007). This behavioural response in children is maintained or strengthened by the presence of a reinforcer, a parent behavioural response such as givingRead MoreTime Frame1002 Words   |  5 PagesBuilding a relationship with them through short conversation and self introduce. * Prepare a comprehensive write up of agency profile and some informative document | 1 week | Manual of the department | AFI, Agency staff Interns. | To know the history of agency.To Familiarized the client staff. | Achieved | * Conduct intake interview with the clients. * Prepare an intake record. * Collateral Interview with other units of attention. | 2 weeks | Intake form and case record | Client, FamilyRead MoreRTI and Disporportionality in Special Education Essay1051 Words   |  5 Pageshousehold changes and moves, and medical, developmental, and educational histories (Ralabate, Klotz, 2007). If there is a possible language barrier then a dual language assessment evaluation should be given. Also included in an individualized comprehensive evaluation is how a student responds to scientific evidence-based interventions. Scientific evidence-based interventions are generally assessed through a response to intervention (RTI). The RTI approach can potentially cross over cultural, socioeconomicRead MoreData Collection Procedures Should Be Used For Measure One Independent Variable And One Dependent Variable946 Words   |  4 Pagesoffering CBT is the independent variable of the study, and will be measured by assessing the client’s demographic and diagnoses in order to determine which clients are diagnosed with BPD. The independent variable will also be measured by the client’s history of treatments, goals, onset of diagnosis, and overall character while in the program. We will test our independent variable by simply reviewing their files and their ability to be a participant within the study. Dependent Variable The dependent variableRead MorePhysical Examination And Laboratory Testing1158 Words   |  5 PagesIntroduction to case study Genitourinary problem in female have a number of symptoms and these symptoms requires clinical skills to focus on problem history and examination. The context of assessing genitourinary problem is based on a number issues such as gynaecological background, family history, obstetric history and sexual history. Having lower pain being experienced in upper urinary track and iliac fossa pain experienced in ectopic pregnancies are some of the symptoms produced by genitourinary

Controversial Issues Of Traditional Arts Essay Example For Students

Controversial Issues Of Traditional Arts Essay There has been cases of tourists jumping into the sea for no reason after they performed Like Mayans along the north-eastern beaches of Peninsular Malaysia. Some cases happen on land too. Going missing and receiving visits were the greatest fear whenever one performs Leek Mayans. Disagree: According to status, Cycle Mayans is not a ghost or jinn. Its a popular song in Triggering and is a type of alga rackety. The leek Mayans song used nowadays has been shortened as Malay count the full song as worshipping spirits which is skirt in Islam. The Malaysian rock diva, Ella once sung the song in a rock version Pico Pico dance choreographed with sequence of steps. it is a type of aerobic dance believed to originated in Indonesia more than 20 years ago Menstruate Astuteness Fatwa Niger Opera banned Pico- Pico because they believe it is derived from Christianity. The dance originated from Jamaica and is actually a cult dance There are many Christian rituals to it as the moves reflect the making of a cross and so is unacceptable in Islam The Malaysian Muslims are confused. There is no any literature or practical evidence showing that Pico-Pico is derived from Christianity either in Indonesia, Philippine or Jamaica. Pico Pico movements with cross design can not be a sufficient justification because movement Of left and right sides is a natural human movement. Even When human stretch his hands, it can be considered illegal if the method resembles the cross. Masseurs curse: Myth or Legend? Summary: One day while Masseurs husband was away fighting a war, Mashers offered shelter to a wandering minstrel, For that, Mashers was accused of omitting adultery by the village chieftains wife. The village chieftain who was still smarting over Masseurs rejection of his earlier marriage proposal, ordered Mashers to be condemned to death. It was said that at her execution Mashers bled white blood signifying her innocence. At her last breath, Mashers was said to utter a curse on Language for which the island will remain barren for seven generations Many locals of Language believe the legend to be true due to failed crops after Masseurs death. According to recorded history, the Siamese invaded Language not long after Masseurs death and razed the island to the ground with a scorched earth policy. And coincidentally, Language did not become a major tourist hotshot until the birth of Wan Aisha bat Wan Anyway, the seventh generation descendant Of Mashers. Some people think Masseurs story most likely is real and the killing of Mashers most likely took place, but the curse of Language and her white blood must be a part of myth because there is no prove or evidence.

Positive Impact free essay sample

The Atlantic Slave Trade had a both positive and negative impact on those involved in it to an extent. Britains economy benefited greatly from the slave trade as many industries flourished. This was an immense opportunity for those who were unemployed as it provided thousands of jobs. People were employed in industries like the building and repair of slave ships, selling the goods produced by slaves such as sugar and cotton, and banking.This resulted in the slave trade becoming the financial base of development of Britain. However, not everyone benefited from this trade as it had an enormous negative impact on Africans society and economy. The 37 years Of slave capturing and exporting resulted in wars between tribes and drained Africans population of 12 million of its strongest youth. This resulted in Africans economic development in being hindered. For Africans the physical experience of slavery was painful, traumatic and long-lasting.Britain benefited from the slave trade in many ways including the economy, as slavery became part of the financial base of development in Britain. We will write a custom essay sample on Positive Impact or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Many economic factors contributed to slavery including the demands of plantation arming, servant slaves and the growth of the slave trade as its own industry. Plantation farming emerged as a way to earn a profitable crop and dominated the southern colonies. In plantations African slaves worked in hundreds from dawn until dusk producing goods that supplied Britain. These goods consisted of sugar, cotton, tobacco and rum.All these crops were very labor intensive requiring hundreds of workers to preserve them. The British became the largest and most efficient carriers of slaves to the new world. Therefore huge profits were made by the labor of unpaid slaves. Liverpool ND Bristol were the main trading ports in Britain, Liverpool alone made IEEE,OHO per year from the slave trade. Scotland was also heavily involved in the slave trade, Scots went out to colonies and generated great wealth for Scotland based on slave labor. Glasgow Tobacco Lords profited from the slave trade, as did the merchants of London, Liverpool and Bristol.The city of London catered the economic services that were necessary for the slave trade, this included insurance and loans for slave traders. F. G Kay wrote about the social changes that happened in Britain following the growth of the lave trade, in a book named The Shameful Trade published in 1967. He states the slave trade created a new class of wealthy colonial families. Bristol merchants who were great dealers increased their trade with the islands Of the Caribbean. They also became specialists in trading with West Africa and retailing captured slaves.The trade also created, sustained and relied on a large support of shipping services, ports and finance companies employing thousands of ordinary people. Many slave ships were need and thousands of jobs were created through this. Jobs in making slave ships, repairing, financing and insuring all flourished. By 1 780 Liverpool had become the largest slave-ship building site in Britain. This also provided thousands of sailors with work. . Insurance was one of the biggest industries during the slave trade, insurance and long term loans created new opportunities for making more money.Slave merchants and sugar plantation owners needed to borrow money to keep their businesses going. Merchants involved in the triangular trade found that insurance was vital because if their ship hit a storm during the voyage its cargo could be lost, and if that ship is not insured then they could lose everything. There were huge profits in selling the goods reduced by slaves such as cotton, sugar and tobacco. Thousands of people were employed in factories to make exportable goods that were traded in for slaves in Africa these were guns, textiles and pottery.People were also employed in making brass and copper in Yorkshire, weavers in Birmingham, chain makers and sugar refiners in Greengrocer. The slave trade made Britain the worlds leading sea power and it helped finance the industrial revolution. The British government made a fortune from the taxes related to the slave trade. Nonetheless not everyone profited from the slave trade, The Atlantic Slave Trade had enormous negative effects on the continent of Africa. Many parts of Africa suffered from an increase in violence, drain of people and an economy increasingly reliant on slavery.As a result of this Africa fell behind the rest of the world. Having fewer young healthy people to produce food would make famine more likely and the rates of death worse. Slavery led to the movement of thousands of people across Africa, allowing disease to spread between different parts of Africa. A lot of good land was left uncultivated and not looked after because there were not enough young people left to farm it. African slaves took with them their religion, traditions, cooking clothes, music and dance.These had a negative impact on Americans as it led to voodoo in the West Indies. The slave trade encouraged conflicts between African tribes, raids and kidnapping. The demand for more slaves led to increased hatred and violence between communities in Africa. There was also the spread of racist ideology to justify the enslavement of Africans. It is estimated that up to 12 million Africans were snatched from their homeland shipped to the Caribbean to work on plantations. Thousands of African villages were ruined as they were raided for slaves.The farming in Africa changed to grow crops which were brought to supply slave ships. African chiefs and kings stopped ruling by law as they became greedy cunning tradesmen. The 37 years Of slave capturing and exporting drained Africa Of millions of its strongest youth. As a result of this the population became unbalanced and the adult male population was reduced to 20%. Overall Africa was the only continent to be affected in this way, and because of the loss in population it became a major factor leading to its economic hardship. John Newton was a British slave trader in West Africa. In a small extract from his journal he comments on the immoral methods used between Africans and Europeans, he states Europeans try to cheat Africans at every turn. Any article of trade that can be cheapened is so. Spirits are diluted with water, kegs of gunpowder have false bottoms and pieces are cut out of rolls of cloth. In conclusion it is clear that Britain benefited from the Atlantic Slave Trade. We know this because of how it boosted the British economy as many industries grew, created thousands of jobs and supplied Britain with essential everyday life goods.We also know that colonies were established on the backs of hard-working African slaves. However not everyone benefited from the slave trade as it made Africa suffer greatly. Up to 12 million young strong Africans were forced out of their homelands and brought to the Caribbean to work without pay. Families separated and sold to go and work on plantations from dawn until dusk. Thousands of villages were wrecked because of the raiding for slaves. African leaders became dishonest, deceptive greedy tradesmen which resulted in Africa becoming corrupt.