第二章融资资金来源.ppt

Overview of financial sources Chapter Two  We shall look at the sources of financing the construction works of two major sectors. The public sector The private sector. For developed countries and economies , taxpayers usually pay for public infrastructure facilities. Governments allocate public works budget after a process of scrutiny and Costs/Benefits Analysis. This type of direct funding from public coffers can either be in the form of a grant or a loan. (Singapore’s housing development HK government finance) 2.2.1 An alternative to Direct Government Funding Government investing as major shareholder in corporative concerns Government back-up will be seen as ground of confidence for subsequent borrowing and fund raising in the capital market. Rating agencies influence borrowing capability Example The Mass Transit Railway Corporation of Hong Kong ,its100 percent of its shares initially held by the government, which enhanced its fund raising in the capital market. When the company is up and running ,the government can divest its shares by partial floating in the stock market to generate additional sources of fund for the continued growth of the company. Up to the end of 2000,the Government has divested 33 percent of its share holding in MTRC to the general public and institutional investors. 2.2.2 Bilateral Aids Extended by developed country to developing countries Allocation is sometimes based on political grounds Conditions may be attached, e.g., mandatory procurement of equipment from aiding country Parliamentary approvals required 2.2.3 Multi-lateral Aid (Supranational Financing) Word Bank (IBRD), Asian Development Bank Extended to developing countries or LDC for poverty alleviation and sustainable development Soft loans (low interest, long-term: 5-10Y) Hard loans (higher interest, shorter term) Assistance available for organization and consultancy Sometimes may take up equity in project 2.2.4 Exp