Financial Risk of Port Infrastructure Development

Kakimoto, Ryuji; Seneviratne, P N

doi:10.1061/(asce)0733-950x(2000)126:6(281)

Cited by 15 publications

(7 citation statements)

References 5 publications

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“…A project financial model serves as a base model for investigating the financial feasibility of the project. Kakimoto and Seneviratne (2000) showed that there are three major components in a financial model, which are cost function, revenue function and decision criteria. The fundamental assumptions of the model are given below:…”

Section: Conventional Linear Programming Model Approachmentioning

confidence: 99%

The optimal debt ratio of public–private partnership projects

Chen

Mao²,

2015

International Journal of Construction Management

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Many governments regard the publicÀprivate partnership (PPP) as the best approach to implement high speed rail projects. However, most PPP schemes incorporate long-term debts in the capital structure due to huge initial investments and long recovery periods. An optimal capital structure, meaning the financing mix between debt and equity, maximizes the value of the PPP project. The terms and conditions of the debt are subject to negotiations between the private sponsor and the financiers, given the concession agreement between the host government and the sponsor. Debt ratio is a key term in the project finance funding agreement. This study contributes to the project preparation of PPP schemes by developing a simple model to determine the optimal debt ratio for financing PPP projects and to establish the relationship between debt ratio and hurdle rates of projects' financial indices. Results suggest that the hurdle rate of financial net present value determines the lower limit of debt ratio and the hurdle rate of times interest earned decides the upper limit of debt ratio in the Taiwan high speed rail project.

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Section: Conventional Linear Programming Model Approachmentioning

confidence: 99%

The optimal debt ratio of public–private partnership projects

Chen

Mao²,

2015

International Journal of Construction Management

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“…Therefore, project financing uses future proceeds of the project plan as the main source of repayment, and the banks pay more attention to the feasibility assessment of the project plan (John and John, 1991;Broome, 2002;Merna and Njiru, 2002). As the investment project is ongoing, investors must consider the project risks that can be controlled and the market risks that cannot be controlled (Kakimoto et al, 2000;Mohamed and McCowan, 2001). Governments and investors may face commercial risks, economic risks, moral hazard risks, and political risks (Yeo and Tiong, 2000;Spedding, 2009;Gatti, 2018).…”

Section: 1mentioning

confidence: 99%

A Study of Project Financing on the Defense Industry in Systems Thinking Perspective

Liu¹,

Wang²,

Fang³

et al. 2021

Journal of Applied Finance &Amp; Banking

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Taiwan has long faced the threat of force from mainland China. Since Taiwan has limited defense industry autonomy, it has insufficient self-produced weapons and must rely on foreign weapon procurement for defense preparation. As a result, Taiwan ranks among the top 10 U.S. arms sales and exports destination due to the large quantity of armaments purchased. An autonomous defense industry capability covers three aspects: independent R&D, production, and formation of the weapon industry chain. Due to the high complexity, strong integration, large capital investment, high technology threshold, and long payback period characteristics of the defense industry; promoting exchanges between the defense industry and private enterprises can effectively bolster economic development and enhance the country’s industrial competitiveness in addition to upgrading its advanced technologies. In addition to the overall government planning and policy promotion, the defense industry also requires private sector participation. However, private manufacturers generally have insufficient financial resources and often need to obtain the necessary funds via project financing. So project financing plays a critical role to the defense industry development. There are numerous consideration factors for project financing and the defense industry. Such factors influence each other, and are correlated and interlinked. All aspects must be considered from a holistic and structural system perspective. But there is a dearth of literature focusing on the research of the defense industry and project financing from a systematic perspective. Therefore, the researcher of this study employed the system dynamics methodology and used system thinking to construct a qualitative system dynamic analysis model for Taiwan's defense industry and project financing system. The goal is to provide reference for countries that desire to develop their own national defense industry. Keywords: Defense industry, Project financing, System dynamics, System thinking.

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“…When specifically searching for articles related to marine project risks as part of this research, only the article by Tam and Shen (2012) could be found. The literature review indicated that riskrelated research on marine projects tended to focus on port operational safety (Alises et al 2014;Kim and Kim 2009;Yang et al 2014;Zheng et al 2011), environmental risk (Zheng et al 2011), and investment risk (Kakimoto and Seneviratne 2000).…”

Section: Published Research On Construction Project Risksmentioning

confidence: 99%

Design and Construction Risks for a Shipping Port and Container Terminal: Case Study

Joubert

Pretorius

2020

J. Waterway, Port, Coastal, Ocean Eng.

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This paper presents the risk identification process, a checklist of 215 different risks, and an associated risk breakdown structure (RBS) for the design and construction phases for a shipping port and associated container terminal. The case study project scope for the research includes a 3,500-m breakwater, 80 ha of reclaimed land, a 1,000-m-long quay wall, port equipment, and buildings. The checklist is categorized according to the project work breakdown structure (WBS) and includes risks associated with (1) breakwater, (2) reclaimed land, (3) entrance canal and basin, (4) quay wall, (5) container yard and buildings, (6) power supply, and (7) project management office. Since the research outcome was developed by subject matter experts during an actual project, it can be used during risk identification, as a completeness check after risk identification on similar projects, or for individual activities (e.g., quay wall construction) per the required project scope. The research also includes a list of risks that specifically relate to marine construction.

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Financial Risk of Port Infrastructure Development

Cited by 15 publications

References 5 publications

The optimal debt ratio of public–private partnership projects

The optimal debt ratio of public–private partnership projects

A Study of Project Financing on the Defense Industry in Systems Thinking Perspective

Design and Construction Risks for a Shipping Port and Container Terminal: Case Study

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