Week 4 quiz CC & P

What is the purpose of SPV’s in construction financing?

• Isolate financial risk to the specific project

• Share the risk to the sponsors assets

• Hold an individual responsible

• Allocate all risk to the government

What typical projects use project financing in construction?

• Swimming centres

• Large homes

• Large infrastructure projects

• Beachfront café precincts

What is the typical source of project finance?

• Equity investors

• Equity exchange businesses

• Debt raisers

• None of these

What are common lenders to infrastructure projects. Choose all that apply.

• Bond markets

• Export credit agencies

• Commercial banks

• Loan sharks

Risk reduction in infrastructure projects can be achieved by which of the following?

• Multiple contracts

• Government subsidies

• Government guarantees

• All of these

How does the government benefit from Public-Private partnerships (PPP’s). Choose the correct answers.

• Efficiency

• Expedition of projects

• Risk sharing

• Reduction of public perception

Choose two key features of PPP’s

• Whole life approach

• Division of labour

• Performance based payments

• Complete outsourcing of project

Which of the following is not a typical PPP model?

• Build-own-operate-transfer

• Design-build-finance-operate

• Design-build-operate-maintain

• Operate-maintain-refurbish-handover

Nominate 3 challenges/risks of PPP’s

• Cost overruns

• Revenue shortfalls for toll roads

• Conflict of interest for private entity

• Conflict of interest for government sponsor

The following parties are typically involved in Integrated project delivery (IPD) projects. Choose all correct responses.

• Owner, architect, and contractor

• Only the owner

• Only the architect

• Only the contractor