1. ELECTRONIC DOCUMENTATION FORM
1. Report Title and Type (Thesis): Special Purpose Vehicle (SPV) for Infrastructure
Projects Financing through Public-Private Partnerships (PPPs)
2. Name of the Author: Abu Naser Chowdhury
3. Name of Advisor and Committee Members:
Dr. Chotchai Charoenngam (Chairperson)
Dr. Pannapa Herabat
Dr. B.H.W. Hadikusumo
4. Field of Study : Construction, Engineering and Infrastructure Management
5. School: School of Engineering and Technology
6. Abstract:
The development of special purpose vehicle (SPV) is essential for successful financial
closeout of public-private partnership (PPP) projects. The financing of infrastructure
projects depends on the anticipated financial performance of the SPV. Ambitious and
improper setup of SPV causes suffering to project, forces restructuring debt mechanism
and even bankruptcy to giant companies. Concerted efforts from the government and
private sectors, as well as political, legal and financial issues need to deal with for smooth
mechanism of SPV. These issues have been identified and evaluated from twelve
worldwide infrastructure projects. It is found that different projects used different SPV
structure. An Attempted has taken to identify the attributes governing the setup of SPV in
those cases. Furthermore, six cases out of twelve in Asia and Mediterranean Middle East
are screened out for in-depth analysis on financial strategies, legal framework, contract,
securities for the SPV framework. The findings are based on a variety of diverse
situations. Finally, a SPV structure for infrastructure projects in general has been
developed, addressing key issues in five areas: (1) finance-ability; (2) sources of funds;
(3) securities and agreements; (4) sovereign support; and (5) credit enhancement. The
research findings should enable public as well as private sector clients to establish more
efficient SPV with respect to financial framework for infrastructure projects.
7. Keywords: Special Purpose Vehicle, Concession, Equity, Debt repayment, Host
government, Export Credit Agencies, Multilateral Development Banks, Off-take,
Sovereign Support, Guarantee
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