Tones, Moods, and Irony in the Canterbury Tales

Forms of speech and intonation are extremely important to capture the attention of the audience, whether it is in writing or spoken aloud. In literature, the author uses some literary devices to entice the reader and extract some sort of reaction from him or her. Tone is a literary technique that shows the author’s attitude towards the audience or reader. The tone of a literary work can be informal, formal, serious, angry, playful, intimate, etc.Similar to tone is mood, which is the created atmosphere with the intention of coaxing a certain emotion from the audience, and is created through setting, theme, and tone. Irony, however, is a tone in which the real meaning is contradicted by the words that were used. The Canterbury Tales by Geoffrey Chaucer is a suitable novel for showing various examples of tone, mood, and irony through the many different characters, their personalities, and their narrations. As far as literary tone goes, it is basically the same as the tone used wh en verbally speaking.Chaucer balanced the serious and deathly tales with the tales set for comedy. In the General Prologue, the portrayals of the Knight, the Parson, and the Plowman show a solemn tone while the Prioress, the Monk, the Merchant and many of the others have comical, ironic, and satiric tales which settle in great comedy. In The Canterbury Tales, Chaucer uses irony and straightforwardness more often than other tones. In the Wife of Bath’s Tale, there is very little emotion within the narration.For example, the story goes that for the knight’s deed, he should die because it is the law. There is no room for argument or hesitation, just follow the law. The Knight’s Tale is one of great magnitude. One can notice how Chaucer had honor towards the Knight, because of how grand he is portrayed and how epic his tale is. Everything that happens in the tale feels extravagant and larger than life. The tone of the Knight’s Tale is Chaucer’s way of convincing the audience that the Knight is worthy and important.Throughout the entire novel, Chaucer creates different atmospheres that point out that not only are the characters traveling together, but some of them also have relations with one another. Sometimes, there are quick shifts of mood from sincerity to mockery and form criticism to sarcasm. Chaucer makes it clear that there is tension and hostility between the Reeve and the Miller in the General Prologue and their tales. The Miller, drunk, tells what seems to be a parody of the Reeve and includes that the Reeve’s wife has been cheating on him. As a comeback, the Reeve tells a tale about a miller who gets tricked and cuckolded.In addition to showing issues in the relationship, Chaucer also forms a comedic atmosphere through the novel. Chaucer makes a parody out of the Church, showing how all of the religious travelers in the story are, instead of being models of holiness, they are corrupt, break their vows, and are d efinitely not models of holiness. Ironically enough, the narrator, who is called Chaucer, gives the reader the impression that he is naive, but sometimes turns out to be knowledgeable about how the travelers want to be portrayed and how they actually are.When he describes the Monk, Chaucer agrees with the Monk’s opinions of how a monk is supposed to really act, whereas when he describes the Prioress, Chaucer paints her portrait to appear like a woman of high class while in reality, the Prioress is just a Nun who is concerned with how etiquette and how she eats. The Pardoner’s Tale is one that shows the most irony, because the three men vow to die for each other, but in the end, they kill each other. Also, what the Pardoner does is ironic because he makes people happy when they unknowingly fall for his tricks.Another example of irony is in the Franklin’s Tale when the rocks that Dorigen prays for disappear, all the trouble begins. The Miller’s Tale is also ironic because since John is concerned that his wife would cheat on him, he becomes extremely jealous and possessive, which makes his wife cuckold him. The travelers all have different reasons for telling his or her own tales, whether it is to make fun of someone else in the group, to make the rest of the travelers laugh, to show off, to confess, or to give a story of moral exemplum.With each story comes both different or similar moods and outcomes, and some even include moral teachings. Chaucer as the narrator wrote by memory about the profiles and stories told by the travelers. He included whether or not he liked certain travelers and how he felt about them just by how much or how little he wrote. The Canterbury Tales is a novel full of comedy, satire, irony, and reality. It is a cornucopia of tones and moods. The Canterbury Tales is truly a masterpiece of literature.

Modern History Essay on USA Civil Rights Movement Essay

In the USA from 1865, when slavery was abolished and African American people where supposedly considered separate but equal by the constitution, to the 1960s, when the African Americans where actually considered equal, segregation practises where being endorsed throughout the USA. Segregation was the practice of separating the white Americans and the African Americans. Segregation occurred when the white Americans continued their upper status on the previously enslaved African Americans, therefore maintaining the African Americans status of repression. However throughout the later 1950s to 1960s American went through the Civil Rights Movement, in which the African Americans aimed for a desegregated society that maintained equality. Throughout the Civil Rights Movement many non-violent protests were held creating direct confrontation urging changes to be made within segregated social areas. Therefore non-violent direct confrontation was the successful means which helped to end segregation practises in the USA. Non-violence was the concept of holding a protest that was peaceful and did not retaliate to violence that was likely to be present. The most successful aspect of these protests was direct confrontation. This was when the African Americans would directly break one of the rules in public segregation, causing direct friction within the segregated society, to push the boundaries in which African American people where confined. The confrontation along with the friction created by these peaceful protests predominantly concluded with change due to the persistence of the African Americans. Despite the escalating violence that was waiting at the majority of the African Americans protests they continued, fighting for their civil rights as humans. One of the most supported organisations for African Americans, by not only African Americans themselves but also white Americans in support of desegregation, was the National Association for the Advancement of Coloured People (the NAACP). As well one of the most historically supported leaders of the NAACP, Martin Luther King’s virtues for desegregation was non-violent protesting. The increasing levels of support for the NAACP helped create mass protest to which those higher up within the government would be forced into acting upon to eradicate the chance of the protest escalating into a violent scene caused by the white Americans. Therefore it is clearly evident that non-violent, direct confrontation was a marginally successful approach to the Civil Rights Movement. Throughout the Civil Rights Movement the media played a major role in the method of non-violence in the ending of segregation. Although the African Americans had a great dedication to their protests they would not have been as greatly supported through these protests without the media. Television station camera men, reporters and photographers, where able to capture the violence and abuse directed at the African American’s, thus demonstrating the resilience of the protesters. Furthermore showing the general American public that in these situations of protests the aggressors where the white Americans and the treatment of the African Americans were unjust. Not only was this evidence of repression upon the African Americans displayed amongst the American media but also global media. Therefore effecting America’s superior reputation amidst the Cold War, giving the current enemy reason as to why capitalism was potentially failing and to their acquainted supporters and potential supporters. This global recognition for a Civil Rights struggle gave motivation to politics to act upon this situation to maintain their global reputation. Therefore the recognition of the African Americans repression and unjust treatment was national and globally recognised, thus gaining support from white Americans after this realisation. Hence the global realisation of this unjust treatment emphasised the need of social change to the government therefore giving some explanation as to the equality that becomes desegregation. Many of the non-violent protests African Americans undertook where simple acts however they caused extravagant aggravation due to racist view that the superior percentage of Americans had grown up amongst. One of the protests conducted by seven African Americans and six white Americans was abruptly ended when bus companies refused to carry them on further through their journey as they were confronted with a brutal mob that violently physically abused them and destroyed the busses that carried them. This protest was the Freedom Rides, protesting to desegregate bus terminals and associated facilities. However other protest groups pushed forward with the Freedom Rides continuing the journey and withstanding the violence until significant action was taken by the government. The desegregation for bus terminal and associated facilities was finally arranged after a major uprise in support for these freedom Riders. Much alike the Freedom Rides, Lunch Counter Sit-Ins were a peaceful protest than ended the desegregation of lunch counters. It started with the simple act on February 4th with of four African American college students sitting at a Woolworths lunch counter until the stores closing after being refused serves due to their race. This protest escalated in size and expanded rapidly due to the support it received. Over 50,000 people participated in one or more of the sit in’s within a year in over 15 different states and various cities. Due to the size and direct confrontation of this protest, abuse and violence erupted in many of the Sit-Ins encouraging the government to desegregate to maintain the countries reputation. Thus although many of the protests conducted where simple acts of rebellion for the African Americans the persistence of them where found confronting to the white Americans therefore resulting in change. Further on during the Civil Rights Movement it became apparent that many other organisations for African Americans gained further support, this including the Muslim religion and in particular those surrounding Malcolm X. Although Malcolm X’s and Martin Luther King’s values for the equality of African Americans differ, their main aim was equality with the white Americans. Malcolm X supported maintaining the separation of the races where as King supported the integration of the races in an equal society. Malcolm X was an activist of the Muslim religion; he focused in eradicating the repression on the African Americans that was being held upon by the white Americans, much alike Martin Luther King. However they differ as King’s protests were supporting the integration of the races and living peacefully together, were as Malcolm believed in the maintaining of the separation of the races. However as history has proven within American prior to the late 1950s that separate is not equal, as much as that may be the aim. Hence it becomes evident that Malcolm X’s protests didn’t succeed in the equality of African American, whereas Martin Luther King’s non-violent protests to integrate proved very successful. Therefore throughout the Civil Rights Movement many different protests where held, and many different organisations where supported however the most successfully was non-violence. These non-violence tactics as stated earlier, where the most effective due to the media coverage, persistence of the large quantity and direct confrontation. Without these aspects the non-violence practices for ending segregation within the USA wold not have been as nearly as efficient. Thus using non-violent methods as a means for ending segregation within the USA proved to be highly successful.

Relationship between productivity and the cost of production Essay

What is the relationship between productivity and the cost of production? The relationship between productivity and the cost of production is your cost per day or per hour compared to your productivity. By examine these two things together. The productivity which is your output for the amount of hours worked compared to the total cost of a certain item – you will be able to reach a â€Å"break even analysis† showing you how much you need to a make minus the total coast to make a certain amount of money. Why is the demand of labor a derived demand? The request for labor is derivative from the production and demand for the item that is being demanded. If the demand for a particular item increases two things usually take place – Most likely the cost of the item will increase and the demand for manufacture labor will increase soon the equilibrium price and production numbers will meet What is the relationship between productivity and the wages earned by employees where you work or at an organization with which you are familiar? Usually but not in all cases, the more an employee produces the more valuable they are because they are adding value to the company but this is not always true and example would be a sweat shop . What are some factors that determine the level of your income? Explain your answer. A person’s level of education an example will be; someone with a Master’s degree with is valued more than someone with a high school diploma. A person’s special skill set will be in high demand due to the scarcity of being able to replace them and how long it took to gain the knowledge they have, an example would be a highly skilled brain surgeon. Also the amount of danger involved in doing a certain job, there are certain jobs that are extremely dangerous and not many people are willing to do them so the demand for the person who will do it would be high, example would be cleaning the windows of the Burj Khalifa building in Dubai. Describe an example you are familiar with in which a technological innovation led to an improvement in productivity. What was the effect on the cost of doing business or activity in which this technology was employed? How did this affect the prices of related inputs? There are many technology innovations which led to improved productivity but the one that stands out most in my mind would be the cell phone. Before cellphones people had to stay in touch through either a land line or a public phone. The cell phone made the need for both of these obsolete. When cell phones first came out they were very expensive and only a select few had them, today people change cell phones due to the low cost, like they buy a new pair of sneakers. Today’s cell phones are like mini computers, they give sales men, business deals, and anyone else constant access to information and to one another, this alone raises productivity.

SLP - 3 Computer technology and the networked organization Essay

SLP - 3 Computer technology and the networked organization - Essay Example It also helps to manage different projects undertaken by an organisation. One of the key benefits organisation can get from the use of wiki is better communication. Wiki is useful for placing meeting minutes, providing different ideas and additional contribution by the employees (Grace, 2009). Online wiki products do not perform alone rather the products must be coupled with online server which provides the permission to create a website. One such product which helps to create wiki is Microsoft SharePoint. It is an online platform through which wiki page can be created. This product is related with several functions comprising web component management, social network association and document management among others. Through this product, organisations can also conduct effective searches for documents and access huge amount of commercial information. Apart from that Microsoft SharePoint also comprise several web tools which assist in central information management, security controls and management of servers (Microsoft Corporation, 2014). One key organisational goal which is supported by Microsoft SharePoint is increased collaboration. Since this product allows the members to create wiki for the purpose of information sharing, it facilitates collaboration within organisation. It act as a platform for creation of online software, comprising IT assets, group workshops, emails, attendance awareness and internet oriented conferencing. Furthermore, the services provided by this product also allow organisations to discover distributed information and files rapidly and effectively, along with empowering the employees to perform creatively. As a result, this product helps to maintain a collaborative environment in an organisation (Cloudmore, 2011). There are several features which can be used in wiki for supporting organisational goals. For instance, FAQ can be used in order to surrogate knowledge base which

Comparison Study of Computer Operating System (between Mac OS and Research Paper

Comparison Study of Computer Operating System (between Mac OS and Windows) - Research Paper Example The significance of the problem is that choosing a reliable and performing operating system makes the difference between comfortable use of the computer as opposed to a use that is punctuated by frequent breakdowns and crashes that can impair productivity of the user. Hence, choosing a good operating system is in the best interests of the consumer and this report attempts to provide a guide to selecting a reliable and performing operating system. The report surveys the existing literature on the comparison between the Windows and Mac OS and also relies on some firsthand observations that have been made by experts who have compared these two operating systems. The point of comparison is in terms of the factors listed above and I have referred extensively to the available information as far as comparison of these factors is concerned. The project methods that have been used to gather information include interviews, review of studies and published material from reputed trade and academic journals and the forums discussing the relative merits and demerits of these two operating systems. My qualifications for doing a comparison between Windows and Mac operating systems is that currently I am using both (Mac OS on my laptop and Windows OS on my PC) and this gives me unique insights into the way each of the operating systems operate. In this report, I use my practical experience as well as the reviews of each of the operating systems from trade journals and websites dedicated to the operating systems to compare the pros and cons of each operating system. The report would focus on how I have gained from using the different operating systems and how the other categories of users have responded with their views. A further point is that I am majoring in related fields to the topic and hence this review falls within my subject area as well as area of interest. I hope

Economic and Social Determinants of Infant Mortality in Developing Essay

Economic and Social Determinants of Infant Mortality in Developing Countries - Essay Example It also aims at reducing health disparities in the developing countries, and a very important indicator of economic development. Neonatal mortality rates are particularly responsive to procedures in the course of the pregnancy, delivery and the neonatal period, as well as the care given to infants and their mothers. Postneonatal mortality rates are contemplated to be determined to largely by parental circumstances such as the care provision and their socioeconomic position. Studying mortality rates will help policy makers to come up with ways of reducing the infant mortality rates. For example, if one of the leading causes of infant mortality is lack of healthcare to women, policy makers can come up with methods of providing healthcare for pregnant women. Every day, millions of lives of infants are lost around the world. However, 80% of these deaths can be avoided if the right measures are taken. Studying the infant mortality rates helps the government, hospitals and other relevant a gencies come up with new ways of preventing reducing the infant mortality rate. It will also help to improve the current prevention methods. Infant mortality is not only caused by biological factors but also social and economic factors. Studying the causes of infant mortality will help doctors and scientist to come up with new ways of controlling the biological causes of infant mortality. This will also provide them with ideas on how they can improve the quality of medicine. This study will begin by a review of literature, to establish the evidence that other authors have found regarding this topic. An empirical study will follow, whereby two models will be analyzed using regression analysis statistical methods. The results of the statistical analysis will be reviewed, and a conclusion will be made. As study focusing on Croydon’s infant mortality, was conducted by Ghosh and Alves (2011), whereby they found that newborn

Analysis of Annual Audited Report for Boeing Corporation Assignment

Analysis of Annual Audited Report for Boeing Corporation - Assignment Example Over its eventful history, the company has been responsible for a number of innovations like the Boeing B-1, B-8 and Monomail, Model C, Boeing 80 and the 737. Boeing earned a profit of $4.018 billion for the year ended December 30, 2011 and had total assets of $79.986 billion on the same date. Since 2005, the company’s Chairman, President and CEO have been W. James McNerney Jr. The company has a total of 164,545 employees worldwide and the top 1.5 % of them go through the Technical Fellowship program, which sets the technical direction for the company. We will now move on to the analysis of Boeing’s financial statements as given in their Audited Annual Reports for 2011. Their accounts have been audited by Deloitte & Touche LLP, one of the Big Four accounting firms in the world. The report is unqualified and this means that Boeing Company has met the financial standards for record keeping and presentation as required by the FASB and other relevant authorities. Analysis o f Net Income and Cash Flows According to the financial statements for the year ended 30 December 2011, Boeing has reported net income from sales of products and services for fiscal year 2011 of $ 4.018 billion. According to their Consolidated Statement of Cash Flows, cash provided from operating activities for 2011 was $5.844 billion (Boeing Annual Report 2011, 55). The difference between the two numbers can be explained on the basis of accrual accounting principles where revenue is recognized when it is earned and expenses are recognized when they are incurred (Porter & Curtis, 2013). Meigs, Meigs and Meigs further distinguish the importance of assessing operating activities through the measure of operating cash flow. Using accrual-based net earnings can lead to ambiguous performance indications, unless a company can convert its revenues/profits into cash (Meigs et al., 1995). Thus from a comparison of Boeing’s net earnings and net cash from operating activities in 2011, it can be concluded that the company is effectively converting their profits into cash. Ratio of Net Income to Net Revenue Looking further at the Consolidated Statement of Earnings, the following figures give a comparison of Boeing’s Net earnings to Net sales for the three years ending in December 2009, 2010 and 2011 respectively. All dollar amounts have been shown in millions: 2011 2010 2009 Net Earnings $4,018 $3,307 $1,312 Net Sales 68,735 64,306 68,281 Ratio 5.84% 5.14% 1.92% (Source: Boeing Annual Report, 2011) Wood and Sangster (2008) state that an efficient business is one who can keep the costs of providing their products or services relatively low compared to their selling price of those products or services. That said, the numbers in the above table are indicative of a fairly efficient business. While Boeing’s net sales had decreased from $68 billion in 2009 to $64 billion in 2010, yet the company managed to increase its net earnings from $1.3 billion to $3.3 bi llion over 2009-2010. The net sales and net earnings both show an increase in 2011 being $68 billion and $4 billion respectively so the company has once again done well Company Assets A further inspection of the Boeing Company’s Consolidated Balance Sheet for 2011 shows that their three largest assets are Inventories ($32.24 billion), Cash and cash equivalents ($10.049 billion),

Article Critique Assessment Essay Example | Topics and Well Written Essays - 1750 words

Article Critique Assessment - Essay Example This paper aims at discussing the article and to find the issues and possible loop holes of the paper. The main reason this article has been chosen is that it deals with the security threats of eCommerce as well as the various threats to the accounting information systems. The authors have also discussed the implications to the management as well. This article is appropriate in the current times, where almost every business has launched an eCommerce website and the numbers of businesses online are constantly increasing every minute, this article is helpful in bringing out the threats being faced and the repercussions that these threats have on the management helps the businesses focus on the factors that need to be taken into account. Hence this article is very relevant in the current times and to a great extent provides the readers with a clear and well explained list of implications on various parties including, management, accountants and auditors, and academics. The article is al so very insightful as it provides a clear explanation of the need for security which can be easily overlooked in the current times. On the whole, the article provides a great insight into the security issues that relate to accounting information systems and excellent ways to reduce the threat levels of these systems. The article is very effective with a detailed explanation of the various aspects and views for different audiences. The article by Beard and Wen has touched upon a few essential aspects of accounting Information systems. The authors have discussed a wide range of issues that are being faced by companies across the world. An excellent point that the authors have included in the paper is the issues that are being faced due to the wide expansion of the internet and the newer opportunities that are being opened up for almost every business and the easy accessibility to break down all barriers of trade and all the physical barriers. The article has a major focus

Shipping Strategies in Transportation Essay Example | Topics and Well Written Essays - 1500 words

Shipping Strategies in Transportation - Essay Example Shipping was traditionally viewed as a direct service from port to port, with the misconception that direct shipping represents the most efficient mode of moving goods (Hanley 2003). But increasingly, this is not the case due to a number of converging factors. First, this has to do with the fact that in order to support traffic on a certain route, ports need to be of certain size. Moreover, with direct shipping, routes and scheduling have become very complex, and that complexity has led to inefficiencies. Ports that are able to create mechanisms to improve efficiency in this environment will gain a greater share of the market. An examination of the shipping volumes at major ports conducted by Hanley (2003) shows that a very significant proportion of the trade is handled by a small group of port operators. Lambert's (1999) study illustrates that the top ten ports (1.4 percent of ports) in the world out of a total of 700 ports surveyed handled 38 percent of the global container cargo in 1997. Should this be extended to the top 25 ports (3.6 percent), the volume handled would increase to 56 percent or over half. Formulation of shipping strategies in the complex environment is the focus of Coyle, Bardi, and Novack's (2006) study. The study provides a very useful approach to in a fast-paced and hastily changing industry. The very appropriate scenarios that these authors are focusing on are the metropolitan areas which have been the essential hubs of economic integration, fostering and benefiting from innovations in commercial, manufacturing, communications, and transportation technologies. In the twenty-first century, nevertheless, only those metropolitan areas that adapt to global economic trends and provide the infrastructure and services that support knowledge-based and technology-driven industries will stay geographic nodes of worldwide business transactions. Persistent technological innovation, particularly in globally interconnected digital communications, transportation, and logistics systems, has spawned the fast growth of service and manufacturing industries connected through virtual networks and supply chains, and is increasing the demand for rapid delivery of high quality goods, services, and information in North America, Europe, Asia, and Latin America. Globalization, the mobility of factors of production, and advances in information and transportation technology are essentially and persistently changing the economic bases of metropolitan areas and the requirements for attracting and maintaining competitive economic activities. Shipping Strategies: A Review Complexity of Direct Shipping From a global system point of view, the complexity of direct shipping is one facet that is often overlooked but is essentially critical. For instance, sustaining direct point-to-point shipping among ten ports necessitates 100 services from one region to another. Should this be doubled to 20 ports from a region to be connected to another 20 ports in another region, then it will require 400 services. The complexity in ensuring these connections is evident. What is less evident is the need for more ships and consequently, more crowded sea-lanes just to provide the necessary connections. Probably, the most significant point is the need for enough traffic to justify such services. Current trade volume in the

Strategies for Motivating People in Non-profit Organization Term Paper

Strategies for Motivating People in Non-profit Organization - Term Paper Example For instance, the number of employees working within an organization partly determines how easy the organizational leaders can motivate them. Additionally, the type of organization also plays a role in how managers motivate employees. In for-profit organizations, employee motivation can be linked to the profits made in that employees are rewarded depending on the amount of profits they are able to raise. However, in a non-profit organization, this may not be the case because such organizations do not seek profits. Instead, non-profit organizations often perform philanthropic work based on volunteerism (Rexhaj, 2011). Therefore, employees within non-profit organizations may not be motivated through compensation/salaries.Moreover, the specific motivation strategies adopted by organizations could add to this complexity. There are multiple motivation theories that organizations may adopt. Each of these theories has its principles, advantages and disadvantages. Depending on they type of m otivation theory that an organization adoptsapplies, the complexity of implementing it varies. Despite these factors, this paper focuses on the role of growing diversity in the workplace and how this affects strategies for motivation in non-profit organizations. The paper argues that growing diversity in non-profit organizations calls for multidimensional approach to motivation. The paper is organized into three main sections. The first part, introduction, provides an overview of the topic and the thesis. The second part, the body, provides the main discussion of the paper. This is the longest part and will be divided into different sub-sections. Finally, the conclusion will provide a recap of the main points from the discussion, restate the thesis, and provide concluding remarks. Before delving into the main discussion about how growing diversity influences motivation strategies in non-profit organizations, it is worthy to understand what non-profit organizations are and what

Statistic project Assignment Example | Topics and Well Written Essays - 750 words

Statistic project - Assignment Example If the null hypothesis is rejected, we would recommend Yoplait’s Research and Development department to start developing new flavors and products utilizing Greek yogurt. If the null hypothesis is not rejected, we would recommend Yoplait to focus instead on creating a better marketing campaign so as to create a demand for its present line up of Greek products. All data gathered in this survey are interval measures. The respondents were asked the question: What factors do you consider in purchasing Greek yogurt? They were then asked to rate three factors: variety of flavors, amount of calories in each product and the price of the product, where 1 is the least important factor and 5 is the most important factor. Based on table 1 above, we can see that the average age of respondents is 27 years old. Standard deviation is pretty high at 7.7, which meant that some of the respondents were much younger and much older than the average age. In the case of the factors considered by customers in purchasing Greek yogurt, the average rating for the variety of flavors is 4.4, amount of calories is 3.7 and price of product is at 4.0. From these rating we can already see that most respondents consider the variety of flavors the most in deciding which yogurt brand to choose. Standard deviation was 0.115475 for variety of flavor responses, 0.17266 for amount of calories responses and 0.175345 for price of product responses. 3. For the purpose of this study, we will use a single factor ANOVA because the responses of the respondents were numerical, but they were in fact categories of responses. We cannot use the t-test or z-test because we are not looking for actual increases in sales. For this study, we will use ÃŽ ±=.05, and we will test at 95% confidence level. We are also using a one-tailed test because we only want to know if adding more flavors will increase sales for Greek yogurt. One tailed tests are always directional

Elasticity on Demand, Breakeven Analysis and Pricing Decisions Essay Example for Free

Elasticity on Demand, Breakeven Analysis and Pricing Decisions Essay When a firm changes prices, the effect on profits is more important than the effect on revenue. There is a simple formula to calculate the critical Price Elasticity of demand which is just sufficient to maintain the contribution to overheads and profits. This will be greater than that required to maintain revenue. A common issue in business and in business studies is whether a firm should change the prices at which products are offered. The calculations begin with estimates of the reaction of customers to the new prices. This reaction is represented as Price Elasticity of Demand (PED), the ratio of the proportionate changes in volume and price. Students are always told and some students even remember that Elastic Demand (PED gt;1) means more revenue from a lower price and less from a higher one; and Inelastic Demand (PED But who wants the same revenue with lower profits? Any change in price will have a much bigger impact, proportionately, on the contribution per item for the firm than on the asking price to the customer. It follows that an increase in price may succeed in raising profits, even though revenue falls; and that a lower price may reduce profits even though revenue increases. So the critical question is not whether the PED is greater or less than one, but whether it is sufficiently high (for a lower price) or sufficiently low (for a price increase) to improve profits. The critical level of PED can be found by an application of breakeven analysis. We can take the current level of contribution to overheads and profit; and ask what the volume (units sold) must be to give the same level of contribution at the alternative price. Having found this critical volume, we can then compute what the PED would be to give us this volume at the new price, compared with the existing price and quantity. This then will be the Critical Price Elasticity of Demand (CPED). If we are raising prices, any PED less than CPED will increase profits; if we are lowering price, we want PED to be more than CPED. And while there is no way, short of trying the price change, to know what the PED actually is, a firm may well have sensible ideas about the likelihood of its being significantly greater or less than a specified value. It may seem that calculating the CPED is rather a waste of time, since we should have to calculate the required change in quantity first; and might just as well reckon our chances of getting this volume after our price change, without entering into Elasticity computations at all. However it turns out that there is a very simple formula for calculating the CPED.

Streptococcus Lactis: Structure and Applications

Streptococcus Lactis: Structure and Applications The following paper describes the bacteria Lactococcus lactis previously referred to as Streptococcus lactis. Lactococcus lactis is used in the making of dairy products. The most common of these products are milk, cheese, and yogurt. Researchers are also looking at the potential of Lactococcus lactis to be used in conjunction with vaccines. I chose to write about this microbe because of the many uses and interesting facts. Lactococcus lactis has served humanity in the past; presently it remains useful in many ways and has the potential to be even a greater asset in the future. Lactococcus Lactis Introduction Lactococcus lactis (L. lactis), is a lactic acid bacteria (LAB) that is nonpathogenic and Gram-positive. The genus Lactococcus is closely related to the genus Streptococcus and is used extensively in the fermenting of milk. It is also the best-characterized lactic acid bacterium (Bolotin, Wincker, Mauger, Jaillon, Malarme, Weissenbach, Ehrlich, Sorokin, 2001). By nature, L. lactis inhabits a function connected to plant and animal surfaces and the gastrointestinal tract of the animal. On plant surfaces, it is inactive but it is believed to reproduce in the gastrointestinal tract after being swallowed (Bolotin et al., 2001). In comparison, researchers have termed what they call a domesticated species of L. lactis. This species is used in the making of dairy products such as cheese, buttermilk, and yogurt. It also serves a different function that is identified by the use of technology such as fast growth and rapid production of lactic acid in milk (Bolotin et al., 2001). Cell Morphology Streptococcus lies under the Domain Bacteria. The term strepto means chained and the term coccus means round, therefore streptococcus cells are spherical and occur in pairs or chains that can be short or long in length (Breed, Murray, Smith, 1957, p. 508). Up until 1985, L. lactis was originally classified under the genus Streptococcus (MicrobeWiki, n.d.). They are non-motile, do not produce spores and have a fermentative metabolism (Bacteria Genomes, n.d.). They also have no pigment; however, in some strains a brick-red or yellow pigment may occur under certain environments (Breed et al., 1957, p. 508). A fermentable carbohydrate or polyhydroxy alcohol is essential for suitable growth in artificial media (Breed et al., 1957, p. 508). The average coccus is small about 1 ÃŽÂ ¼m in diameter (Engelkirk Engelkirk, 2011), which may vary from rough to smooth to mucoid (Breed et al., 1957, pps. 508-509). Carbohydrate fermentation is homofermentative with dextro rotator lactic acid as t he main end result. Carbon dioxide is produced in very small amounts or not at all from sugar fermentation (Breed et al., 1957, p. 509). With respect to their nutrition, all streptococci are particular and and require a number of the B vitamins and amino acids for growth (Breed et al., 1957, p. 509). Species have their own nutritional requirements. Streptococcus is generally found wherever natural substances that contain sugars are accumulated. They occur regularly within the mouth and intestines of humans and animals, in dairy and other food products, and in plant juices that are fermenting (Breed et al., 1957, p. 509). Genome Properties The genome of L. lactis is a circular chromosome with 2,365,589 base pair, where 86% of the genome code for protein, 1.4% for RNA, and 12.6% for noncoding region. 64.2% of the genes code for known functional proteins and 20.1% of the genes for known protein with unknown function. The remaining 15.7% of the genes are unidentified proteins that may be unique to the Lactococcus (MicrobeWiki, n.d.). According to Todar, (2011), the subspecies of L. lactis are used extensively as models in lactic acid bacteria research. One subspecies, Lactococcus lactis ssp. cremoris is characterized by the laboratory strains LM0230 and MG1363, and it is best preferred for the making of hard cheeses. The other subspecies, Lactococcus lactis ssp. lactis is considered the workhorse strain and is represented by IL1403 (Todar, 2011). This subspecies is best preferred for the making of soft cheeses. Todar (2011) also suggests that beginning in 2001, these strains have been sequenced. In other words, there is a better understanding of how these bacteria are associated with their function. Finally, the ability to compare genomes has led to more knowledge of how the variety of Lactococcus strains adapt to their environments. This ability to compare has also lead to unanticipated findings. It has been suggested that this bacterium can perform aerobic respiration and can undergo horizontal gene transmission by the process of transformation (Todar, 2011). With that, it is possible that Lactococcus lactis can be used to improve minuscule things such as flavor, texture, and preservation of 10 million pounds of cheese that is produced annually (Todar, 2011). It is important to be able to examine and decipher the characteristics of bacteria in order to provide data for identification and classification (Engelkirk Engelkirk, 2011). Unique Properties As previously mentioned, Lactococcus lactis (L. lactis) is one of the most important micro-organisms in the dairy industry (Bacteria Genomes, n.d.). It is essential in the development and production of products by this industry. When L. lactis is added to milk, the bacterium uses enzymes to produce energy molecules (called ATP) from lactose. The byproduct of ATP energy production is lactic acid (Bacteria Genomes, n.d.). This lactic acid that is produced by the bacterium causes the milk to curdle and separate to produce curds, which is then used for cheese and whey (Bacteria Genomes, n.d.). The specific types of dairy that use L. lactis for its manufacturing include the cheeses Cheddar, Colby, Camembert, Roquefort, Brie, cottage cheese, cream cheese, and other dairy products such as butter, buttermilk, sour cream, and kefir (Todar, 2011). It is also accepted as a source of vegetable fermentation for pickled cucumbers and sauerkraut and for other fermented liquids such as beer and wine . L. lactis has also been considered for the development of delivering vaccines. The bacterium can be genetically engineered to produce proteins from pathogenic species on their cell surfaces (Todar, 2011). This is done by injecting an animal with a modified strain of the bacterium by way of a nasal spray. An immune response to the strain is obtained which provides an eventual immunity to the pathogen (Todar, 2011). Because L. lactis is non-pathogenic and non-colonizing it is a promising candidate for delivering biologically active proteins by mucosal routes. In a report by Chinese researchers it is described that recombinant L. lactis is applicable for the development of live mucosal vaccine against hepatitis B virus (HBV) (Zhang, Zhong, Huan, 2011). In a lab test mice were given an oral immunization and it induced both mucosal and systemic immune responses against HBV at the same magnitude. These results indicated that the lactococci-derived vaccines could be attractive candidates as alternative HBV vaccines for preventing hepatitis B (Zhang, Zhong, Huan, 2011). The increased research of L. lactis would be beneficial to people in underdeveloped countries and where sickness and other diseases is high. In conclusion, the bacterium Lactococcus lactis appears versatile. The current research suggests that, with more exploration, L. lactis can be used to improve the quality of dairy products as well as the health of individuals by way of vaccines.

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-