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89-453: Bligh Bank is the first stage of what is planned to be a 330 MW project. It was financed under a Project Finance structure by Project Company ‘Belwind’, after a number of delays that included bankruptcy of developer Econcern . Financial completion was eventually reached on 27 July 2009. Bligh Bank is only the third offshore wind farm to be Project Financed, following Q7 and Thornton Bank . The €614 million deal sees Colruyt Group ,

178-466: A development bank and a commercial bank . These banks provide a guarantee to Acme Construction's financier that the company can pay for the completion of construction. Payment for construction is generally paid as such: 10% up front, 10% midway through construction, 10% shortly before completion, and 70% upon transfer of title to Power Holdings, which becomes the owner of the power plant. Acme Coal and Energen form Power Manage Inc., another SPC, to manage

267-589: A performance bond to guarantee timely completion of the project by the contractor. Publicly funded projects may also use additional financing methods such as tax increment financing or private finance initiative (PFI). Such projects are often governed by a capital improvement plan which adds certain auditing capabilities and restrictions to the process. Project financing in transitional and emerging market countries are particularly risky because of cross-border issues such as political, currency and legal system risks. Therefore, mostly requires active facilitation by

356-464: A surety from sponsors. A complex project finance structure may incorporate corporate finance , securitization , real options , insurance provisions or other types of collateral enhancement to mitigate unallocated risk. Limited recourse lending was used to finance maritime voyages in ancient Greece and Rome . Its use in infrastructure projects dates to the development of the Panama Canal , and

445-399: A 'typology of nationalizing, developmental, and neoliberal migration management regimes' across developing countries. Following independence and decolonization in the 20th century, most developing countries had dire need of new infrastructure , industry and economic stimulation. Many relied on foreign investment. This funding focused on improving infrastructure and industry, but led to

534-541: A certain date, in accordance with certain specifications, and with certain performance warranties. The EPC contract is quite complicated in terms of legal issue, therefore the project company and the EPC contractor need sufficient experience and knowledge of the nature of project to avoid their faults and minimize the risks during contract execution. The terms EPC contract and turnkey contract are interchangeable. EPC stands for engineering (design), procurement and construction. Turnkey

623-402: A certain level of revenues. In other sectors including road transportation , the government may toll the roads and collect the revenues, while providing a guaranteed annual sum (along with clearly specified upside and downside conditions) to the project. This serves to minimise or eliminate the risks associated with traffic demand for the project investors and the lenders. Minority owners of

712-498: A clear definition, sustainability expert Mathis Wackernagel and founder of Global Footprint Network , emphasizes that the binary labeling of countries is "neither descriptive nor explanatory". Wackernagel identifies these binary terms of "developing" vs. "developed" countries, or "North" vs. "South", as "a thoughtless and destructive endorsement of GDP fetish." Wackernagel and Rosling both argue that in reality, there are not two types of countries, but over 200 countries, all faced with

801-431: A coal mine, its own plant. However, the supplier may have no obligation to produce any output unless agreed otherwise. The supply can also be under a take-or-pay or take-and-pay 3.Interruptible supply: some supplies such as gas are offered on a lower-cost interruptible basis – often via a pipeline also supplying other users. 4.Tolling contract: the supplier has no commitment to supply at all, and may choose not to do so if

890-420: A green certificate, meaning it will receive a set minimum price through Elia , €107 per MWh for the first 216 MW, the remaining 114 MW will receive €90 per MWh. In 2011, it received €49,51 per MWh through the sale of the generated electricity to Electrabel. Project Finance Project finance is the long-term financing of infrastructure and industrial projects based upon the projected cash flows of

979-462: A high climate vulnerability or low climate resilience . Developing countries often have lower median ages than developed countries. Population aging is a global phenomenon, but population age has risen more slowly in developing countries. Development aid or development cooperation is financial aid given by foreign governments and other agencies to support developing countries' economic, environmental, social, and political development . If

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1068-524: A large informal economy , high crime rates ( extortion , robbery , burglary , murder , homicide , arms trafficking , sex trafficking , drug trafficking , kidnapping , rape ), low education levels, economic inequality , school desertion , inadequate access to family planning services, teenage pregnancy , many informal settlements and slums , corruption at all government levels, and political instability. Unlike developed countries, developing countries lack rule of law . Access to healthcare

1157-476: A medium to low standard of living . There is an association between low income and high population growth. The development of a country is measured with statistical indices such as income per capita (per person), gross domestic product per capita, life expectancy , the rate of literacy, freedom index and others. The UN has developed the Human Development Index (HDI), a compound indicator of some of

1246-927: A method of grouping countries based on their defining characteristics with regard to socioeconomics and politics . According to UN Trade and Development (UNCTAD), the Global South broadly comprises Africa, Latin America and the Caribbean , Asia (excluding Israel , Japan , and South Korea ), and Oceania (excluding Australia and New Zealand ). Most of the Global South's countries are commonly identified as lacking in their standard of living , which includes having lower incomes , high levels of poverty , high population growth rates , inadequate housing, limited educational opportunities, and deficient health systems , among other issues. Additionally, these countries' cities are characterized by their poor infrastructure . Opposite to

1335-400: A national/regional government, a municipality, or a special purpose entity set up by the state to grant the concession. Examples of concession agreements include contracts for the following: The shareholders agreement (SHA) is an agreement between the project sponsors to form a special purpose company (SPC) in relation to the project development. This is the most basic of structures held by

1424-685: A non-partner (not including sexual harassment ) at some point in their lives. Evidence shows women who have had experienced physical or sexual intimate partner violence report higher rates of depression, having an abortion and acquiring HIV , compared to women who have not had experienced any physical or sexual violence. Data from the Middle East and North Africa shows that men who witnessed their fathers against their mothers, and men who experienced some form of violence as children, more likely have reported perpetrating intimate partner violence in their adult relationships. The status of healthcare that

1513-518: A number of technical, environmental, economic and political risks, particularly in developing countries and emerging markets . Financial institutions and project sponsors may conclude that the risks inherent in project development and operation are unacceptable (unfinanceable). "Several long-term contracts such as construction, supply, off-take and concession agreements, along with a variety of joint-ownership structures are used to align incentives and deter opportunistic behaviour by any party involved in

1602-479: A power plant to accomplish their respective goals. Typically, the first step would be to sign a memorandum of understanding to set out the intentions of the two parties. This would be followed by an agreement to form a joint venture . Acme Coal and Energen form an SPC (Special Purpose Corporation) called Power Holdings Inc. and divide the shares between them according to their contributions. Acme Coal, being more established, contributes more capital and takes 70% of

1691-552: A preferential treatment at the WTO , countries such as Brunei , Hong Kong , Kuwait , Macao , Qatar , Singapore , and the United Arab Emirates have been cited and criticized for this self-declared status. Development can be measured by economic or human factors. Developing countries are, in general, countries that have not achieved a significant degree of industrialization relative to their populations, and have, in most cases,

1780-872: A project may wish to use " off-balance-sheet " financing, in which they disclose their participation in the project as an investment, and excludes the debt from financial statements by disclosing it as a footnote related to the investment. In the United States, this eligibility is determined by the Financial Accounting Standards Board . Many projects in developing countries must also be covered with war risk insurance , which covers acts of hostile attack, derelict mines and torpedoes, and civil unrest which are not generally included in "standard" insurance policies. Today, some altered policies that include terrorism are called Terrorism Insurance or Political Risk Insurance . In many cases, an outside insurer will issue

1869-429: A range of data variations. The typical project finance documentation can be reconducted to six main types: The most common project finance construction contract is the engineering, procurement and construction (EPC) contract. An EPC contract generally provides for the obligation of the contractor to build and deliver the project facilities on a fixed price, turnkey basis, i.e., at a certain pre-determined fixed price, by

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1958-813: A system of systemic exploitation. They exported raw materials, such as rubber , for a bargain. Companies based in the Western world have often used the cheaper labor in developing countries for production. The West benefited significantly from this system, but left developing countries undeveloped. This arrangement is sometimes called neocolonialism , meaning a system in which less-developed countries are taken advantage of by developed countries. It does not necessarily mean that former colonies are still controlled by their former colonizer; it refers to colonial-like exploitation. Developing countries are often helping further develop rich countries, rather than being developed themselves. Several institutions have been established with

2047-615: Is another form of violence against women which is still occurring in many developing countries. It is found mostly in Africa, and to a lesser extent in the Middle East and some other parts of Asia. Developing countries with the highest rate of women who have been cut are Somalia (with 98% of women affected), Guinea (96%), Djibouti (93%), Egypt (91%), Eritrea (89%), Mali (89%), Sierra Leone (88%), Sudan (88%), Gambia (76%), Burkina Faso (76%), and Ethiopia (74%). Due to globalization and immigration, FGM

2136-404: Is based on the idea that when the owner takes responsibility for the facility all it will need to do is turn the key and the facility will function as intended. Alternative forms of construction contract are a project management approach and alliance contracting. Basic contents of an EPC contract are: An operation and maintenance (O&M) agreement is an agreement between the project company and

2225-641: Is connected to the second high-voltage station, (the Booster Transformer Station) in Zeebrugge. In 2012, Alstom planned to install a wind turbine of 6 MW Haliade as a test, which happened in November 2013. The construction of the second phase was mostly in 2016, with the first foundation on 12 May, first turbine on 27 of October and first electricity production 9 January 2017. The park has been fully commissioned as of 24 May 2017. The Belwind Wind Farm has

2314-467: Is constructed by the sponsor as a tool to conduct negotiations with the investor and prepare a project appraisal report. It is usually a spreadsheet designed to process a comprehensive list of input assumptions, and to provide outputs that reflect the anticipated "real life" interaction between data and calculated values for a particular project. Properly designed, the financial model is capable of sensitivity analysis , i.e. calculating new outputs based on

2403-436: Is criticism for using the term "developing country". The term could imply inferiority of this kind of country compared with a developed country . It could assume a desire to develop along the traditional Western model of economic development which a few countries, such as Cuba and Bhutan , choose not to follow. Alternative measurements such as gross national happiness have been suggested as important indicators. One of

2492-452: Is defined by sociologist Patrick Heller as: "closing [the] gap between formal legal rights in the civil and political arena, and the actual capability to meaningfully practice those rights". Beyond citizenship, the study of the politics of cross-border mobility in developing countries has also shed valuable light in migration debates, seen as a corrective to the traditional focus on developed countries. Some political scientists identify

2581-458: Is financially sound or to assure the lenders of the sponsors' commitment. Project finance is often more complicated than alternative financing methods. Traditionally, project financing has been most commonly used in the extractive ( mining ), transportation , telecommunications , and power industries, as well as for sports and entertainment venues. Risk identification and allocation is a key component of project finance. A project may be subject to

2670-474: Is often low. People in developing countries usually have lower life expectancies than people in developed countries, reflecting both lower income levels and poorer public health. The burden of infectious diseases, maternal mortality , child mortality and infant mortality are typically substantially higher in those countries. The effects of climate change are expected to impact developing countries more than high-income countries, as most of them have

2759-848: Is often used interchangeably with "developing country" but refers only to the economy of the countries. Least developed countries , landlocked developing countries and small island developing states are all sub-groupings of developing countries. Countries on the other end of the spectrum are usually referred to as high-income countries or developed countries . The term " Global South " began to be used more widely since about 2004. It can also include poorer "southern" regions of wealthy "northern" countries. The Global South refers to these countries' "interconnected histories of colonialism , neo-imperialism , and differential economic and social change through which large inequalities in living standards, life expectancy, and access to resources are maintained". Global North and Global South are terms that denote

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2848-408: Is one with GNI per capita between 1,046 and 4,095 in current US$ ; an upper middle-income country is one with GNI per capita between 4,096 and 12,695 in current US$ , and a high income country is one with GNI per capita of more than 12,696 in current US$ . Historical thresholds are documented. The use of the term "market" instead of "country" usually indicates a specific focus on the characteristics of

2937-542: Is spreading beyond the borders of Africa, Asia and the Middle East, and to countries such as Australia, Belgium, Canada, France, New Zealand, the U.S., and UK. The Istanbul Convention prohibits female genital mutilation (Article 38). As of 2016, FGM has been legally banned in many African countries. According to UN Women facts and figures on ending violence against women , it is estimated that 35 percent of women worldwide have experienced either physical and sexual violence by intimate partners or sexual violence by

3026-406: Is the cause for more than 200 million children under five years of age in developing countries not reaching their developmental potential. About 165 million children were estimated to have stunted growth from malnutrition in 2013. In some developing countries, overnutrition in the form of obesity is beginning to present within the same communities as undernutrition. The following list shows

3115-432: Is the sectoral changes that have occurred since the stage of development of the country. On an average, countries with a 50% contribution from the secondary sector ( manufacturing ) have grown substantially. Similarly, countries with a tertiary sector stronghold also see a greater rate of economic development . The term "developing countries" has many research theories associated with it (in chronological order): There

3204-422: Is to provide the project company with stable and sufficient revenue to pay its project debt obligation, cover the operating costs and provide certain required return to the sponsors. The main off-take agreements are: A supply agreement is between the project company and the supplier of the required feedstock / fuel. If a project company has an off-take contract, the supply contract is usually structured to match

3293-456: The Middle East , some incorporating Islamic finance . The new project finance structures emerged primarily in response to the opportunity presented by long term power purchase contracts available from utilities and government entities. These long term revenue streams were required by rules implementing PURPA . The policy resulted in further deregulation of electric generation and, significantly, international privatization following amendments to

3382-546: The Public Utilities Holding Company Act in 1994. The structure has evolved and forms the basis for energy and other projects throughout the world. There are several parties in a project financing depending on the type and the scale of a project. The most usual parties to a project financing are: Project development is the process of preparing a new project for commercial operations. The process can be divided into three distinct phases: A financial model

3471-552: The Sustainable Development Goals which were set up by the United Nations for the year 2030 are achieved, they would overcome many of these problems. There are several terms used to classify countries into rough levels of development. Classification of any given country differs across sources, and sometimes, these classifications or the specific terminology used is considered disparaging. The World Bank classifies

3560-585: The Colruyt family, SHV , ParticipatieMaatschappij Vlaanderen, Meewind and Rabo Project Equity , come together to invest in the construction of the 165 MW first stage of the Project. For the first time the European Investment Bank will assume project finance risk for an offshore wind farm, by granting €300 million towards financing the Project. In January 2011, SHV sold its 20,7 % equity-share to

3649-665: The Global South is the Global North, which the UNCTAD describes as broadly comprising Northern America and Europe, Israel, Japan, South Korea, Australia, and New Zealand. As such, the two terms do not refer to the Northern Hemisphere or the Southern Hemisphere , as many of the Global South's countries are geographically located in the former and, similarly, a number of the Global North's countries are geographically located in

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3738-554: The UN institutions); the former Soviet Union (USSR) countries in Central Asia ( Kazakhstan , Uzbekistan , Kyrgyzstan , Tajikistan and Turkmenistan ); and Mongolia . By 2009, the IMF's World Economic Outlook classified countries as advanced, emerging, or developing, depending on "(1) per capita income level, (2) export diversification—so oil exporters that have high per capita GDP would not make

3827-680: The above statistics, to gauge the level of human development for countries where data is available. The UN had set Millennium Development Goals from a blueprint developed by all of the world's countries and leading development institutions, in order to evaluate growth. These goals ended in 2015, to be superseded by the Sustainable Development Goals . The concept of the developing nation is found, under one term or another, in numerous theoretical systems having diverse orientations – for example, theories of decolonization , liberation theology , Marxism , anti-imperialism , modernization , social change and political economy . Another important indicator

3916-477: The additional clauses to cover specific requirements of the project and project documents. Basic terms of a loan agreement include the following provisions. Intercreditor agreement is agreed between the main creditors of the project company. This is the agreement between the main creditors in connection with the project financing. The main creditors often enter into the Intercreditor Agreement to govern

4005-501: The advanced classification because around 70% of its exports are oil, and (3) degree of integration into the global financial system". Developing countries can also be categorized by geography: In general, the WTO accepts any country's claim of itself being "developing." Certain countries that have become "developed" in the last 20 years by almost all economic metrics, still insist to be classified as "developing country," as it entitles them to

4094-417: The circumstances in which the financiers may “step in” under the project contracts in order to remedy any default. A tripartite deed would normally contain the following provision. Tripartite deed can give rise to difficult issues for negotiation but is a critical document in project financing. An agreement between the financing parties and the project company which sets out the terms that are common to all

4183-459: The common terms and relationships among the lenders in respect of the borrower’s obligations. Intercreditor agreement will specify provisions including the following. The financiers will usually require that a direct relationship between itself and the counterparty to that contract be established which is achieved through the use of a tripartite deed (sometimes called a consent deed, direct agreement or side agreement ). The tripartite deed sets out

4272-399: The contracts for delivering the power to consumers. In developing countries, it is not unusual for one or more government entities to be the primary consumers of the project, undertaking the "last mile distribution" to the consuming population. The relevant purchase agreements between the government agencies and the project may contain clauses guaranteeing a minimum offtake and thereby guarantee

4361-532: The countries' capital markets as opposed to the overall economy. Under other criteria, some countries are at an intermediate stage of development, or, as the International Monetary Fund (IMF) put it, following the fall of the Soviet Union , "countries in transition": all those of Central and Eastern Europe (including Central European countries that still belonged to the "Eastern Europe Group" in

4450-461: The creation of slums. In some cities, especially in countries in Southern Asia and Sub-Saharan Africa, slums are not just marginalized neighborhoods holding a small population; slums are widespread, and are home to a large part of urban population. These are sometimes called "slum cities". Several forms of violence against women are more prevalent in developing countries than in other parts of

4539-410: The current divide between the developed and developing world is largely a phenomenon of the 20th century. The late global health expert Hans Rosling has argued against the terms, calling the concept "outdated" since the terms are used under the prerequisite that the world is divided in rich and poor countries, while the fact is that the vast majority of countries are middle-income. Given the lack of

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4628-411: The early criticisms that questioned the use of the terms "developing" and "underdeveloped" countries was voiced in 1973 by prominent historian and academic Walter Rodney who compared the economic, social, and political parameters between the United States and countries in Africa and Asia. There is "no established convention" for defining "developing country". According to economist Jeffrey Sachs ,

4717-500: The economy of the countries. The World Bank classifies the world's economies into four groups, based on gross national income per capita: high, upper-middle, lower-middle, and low income countries. Least developed countries , landlocked developing countries and small island developing states are all sub-groupings of developing countries. Countries on the other end of the spectrum are usually referred to as high-income countries or developed countries . There are controversies over

4806-541: The facility. The ultimate purpose of the two SPCs (Power Holding and Power Manage) is primarily to protect Acme Coal and Energen. If a disaster happens at the plant, prospective plaintiffs cannot sue Acme Coal or Energen and target their assets because neither company owns or operates the plant. However project financiers may recognize this and require some sort of parent guarantee for up to negotiated amounts of operational liabilities. A Sale and Purchase Agreement (SPA) between Power Manage and Acme Coal supplies raw materials to

4895-412: The financing instruments and the relationship between them (including definitions, conditions, order of drawdowns, project accounts, voting powers for waivers and amendments). A common terms agreement greatly clarifies and simplifies the multi-sourcing of finance for a project and ensures that the parties have a common understanding of key definitions and critical events. Agreement between the borrower and

4984-743: The further significant environmentally-related causes or conditions, as well as certain diseases with a strong environmental component: Access to water, sanitation and hygiene ( WASH ) services is at very low levels in many developing countries. In 2015 the World Health Organization (WHO) estimated that "1 in 3 people, or 2.4 billion, are still without sanitation facilities" while 663 million people still lack access to safe and clean drinking water. The estimate in 2017 by JMP states that 4.5 billion people currently do not have safely managed sanitation. The majority of these people live in developing countries. About 892 million people or 12 percent of

5073-414: The general assets or creditworthiness of the project sponsors, a decision in part supported by financial modeling ; see Project finance model . The financing is typically secured by all of the project assets, including the revenue-producing contracts. Project lenders are given a lien on all of these assets and are able to assume control of a project if the project company has difficulties complying with

5162-551: The general public can access is substantially different between developing countries and developed countries. People in developing countries usually have a lower life expectancy than people in developed countries, reflecting both lower income levels and poorer public health. The burden of infectious diseases, maternal mortality , child mortality and infant mortality are typically substantially higher in those countries. Developing countries also have less access to medical health services generally, and are less likely to have

5251-505: The general terms of the off-take contract such as the length of the contract, force majeure provisions, etc. The volume of input supplies required by the project company is usually linked to the project’s output. Example under a PPA the power purchaser who does not require power can ask the project to shut down the power plant and continue to pay the capacity payment – in such case the project company needs to ensure its obligations to buy fuel can be reduced in parallel. The degree of commitment by

5340-429: The global population, and is criticized for its imprecision. Historical and empirical evidence, like the varied infant mortality rates across these nations, underscores the flaws in a uniform classification. Alternatives such as regional or income-based categories (low-income to high-income) are advocated for, as they align better with the specific contexts of countries, supporting more effective policy formulation. Since

5429-523: The goal of putting an end to this system. One of these institutions is the New International Economic Order . They have a 'no-strings-attached' policy that promotes developing countries remaining or becoming self-sufficient. More specifically, they advocate sovereignty over natural resources and industrialization. Coalitions of developing nations, like the NIEO, frequently lobby for parity in

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5518-478: The government. Developing countries A developing country is a sovereign state with a less developed industrial base and a lower Human Development Index (HDI) relative to other countries. However, this definition is not universally agreed upon. There is also no clear agreement on which countries fit this category. The terms low and middle-income country ( LMIC ) and newly emerging economy ( NEE ) are often used interchangeably but refers only to

5607-421: The late 1990s, countries identified by the UN as developing countries tended to demonstrate higher growth rates than those in the developed countries category. To moderate the euphemistic aspect of the word "developing", international organizations have started to use the term less economically developed country for the poorest nations – which can, in no sense, be regarded as developing. This highlights that

5696-689: The latter. Many developing countries have only attained full self-determination and democracy after the second half of the 20th century. Many were governed by an imperial European power until decolonization . Political systems in developing countries are diverse, but most states had established some form of democratic governments by the early 21st century, with varying degrees of success and political liberty . The inhabitants of developing countries were introduced to democratic systems later and more abruptly than their Northern counterparts and were sometimes targeted by governmental and non-governmental efforts to encourage participation. 'Effective citizenship '

5785-425: The lender for the cost, provision and repayment of debt. The term sheet outlines the key terms and conditions of the financing. The term sheet provides the basis for the lead arrangers to complete the credit approval to underwrite the debt, usually by signing the agreed term sheet. Generally the final term sheet is attached to the mandate letter and is used by the lead arrangers to syndicate the debt. The commitment by

5874-533: The lenders is usually subject to further detailed due diligence and negotiation of project agreements and finance documents including the security documents. The next phase in the financing is the negotiation of finance documents and the term sheet will eventually be replaced by the definitive finance documents when the project reaches financial close. For example, the Acme Coal Co. imports coal. Energen Inc. supplies energy to consumers. The two companies agree to build

5963-403: The loan terms. Generally, a special purpose entity is created for each project, thereby shielding other assets owned by a project sponsor from the detrimental effects of a project failure . As a special purpose entity, the project company has no assets other than the project. Capital contribution commitments by the owners of the project company are sometimes necessary to ensure that the project

6052-488: The operator. The project company delegates the operation, maintenance and often performance management of the project to a reputable operator with expertise in the industry under the terms of the O&;M agreement. The operator could be one of the sponsors of the project company or third-party operator. In other cases the project company may carry out by itself the operation and maintenance of the project and may eventually arrange for

6141-520: The other Belgian shareholders Colruyt Group, the Colruyt family and ParticipatieMaatschappij Vlaanderen. The financial close of the Second Phase of the project was on 6 October 2015. Construction of the first phase commenced in August 2009 and was completed on 9 December 2010. The wind farm includes an Offshore High Voltage Station which converts the infield 33kV to the export cable (150kV). This export cable

6230-469: The power plant. Electricity is then delivered to Energen using a wholesale delivery contract. The net cash flow of the SPC Power Holdings (sales proceeds less costs) will be used to repay the financiers. The above is a simple explanation which does not cover the mining, shipping, and delivery contracts involved in importing the coal (which in itself could be more complex than the financing scheme), nor

6319-517: The presentation of its data, considering the two-category distinction outdated. Accordingly, World Bank is phasing out use of that descriptor. Instead, the reports by Worldbank (such as the WDI and the Global Monitoring Report ) now include data aggregations for the whole world, for regions, and for income groups – but not for the "developing world". The term low and middle-income country (LMIC)

6408-404: The project rather than the balance sheets of its sponsors. Usually, a project financing structure involves a number of equity investors, known as 'sponsors', and a 'syndicate' of banks or other lending institutions that provide loans to the operation. They are most commonly non-recourse loans , which are secured by the project assets and paid entirely from project cash flow, rather than from

6497-568: The project." The patterns of implementation are sometimes referred to as " project delivery methods ." The financing of these projects must be distributed among multiple parties, so as to distribute the risk associated with the project while simultaneously ensuring profits for each party involved. In designing such risk-allocation mechanisms, it is more difficult to address the risks of developing countries' infrastructure markets as their markets involve higher risks. A riskier or more expensive project may require limited recourse financing secured by

6586-515: The resources to purchase, produce and administer vaccines , even though vaccine equity worldwide is important to combatting pandemics , such as the COVID-19 pandemic . Undernutrition is more common in developing countries. Certain groups have higher rates of undernutrition, including women – in particular while pregnant or breastfeeding – children under five years of age, and the elderly. Malnutrition in children and stunted growth of children

6675-429: The same laws of nature, yet each with unique features. The term "developing" refers to a current situation and not a changing dynamic or expected direction of development. Additionally, the term "developing world" is increasingly seen as outdated, suggesting a hierarchy and not accurately reflecting the diverse realities of the encompassed countries. This term includes 135 low- or middle-income countries, covering 84% of

6764-485: The shares. Energen is a smaller company and takes the remaining 30%. The new company has no assets. Power Holdings then signs a construction contract with Acme Construction to build a power plant. Acme Construction is an affiliate of Acme Coal and the only company with the know-how to construct a power plant in accordance with Acme's delivery specification. A power plant can cost hundreds of millions of dollars. To pay Acme Construction, Power Holdings receives financing from

6853-492: The sponsors in a project finance transaction. This is an agreement between the sponsors and deals with: An off-take agreement is an agreement between the project company and the offtaker (the party who is buying the product / service that the project produces / delivers). In a project financing the revenue is often contracted (rather than being sold on a merchant basis). The off-take agreement governs mechanism of price and volume which make up revenue. The intention of this agreement

6942-583: The standard of living across the entire developing world varies greatly. In 2015, the World Bank declared that the "developing / developed world categorization" had become less relevant, due to worldwide improvements in indices such as child mortality rates, fertility rates and extreme poverty rates. In the 2016 edition of its World Development Indicators (WDI), the World Bank made a decision to no longer distinguish between "developed" and "developing" countries in

7031-412: The supplier can vary. The main supply agreements are: 1. Fixed or variable supply: the supplier agrees to provide a fixed quantity of supplies to the project company on an agreed schedule, or a variable supply between an agreed maximum and minimum. The supply may be under a take-or-pay or take-and-pay. 2.Output / reserve dedication: the supplier dedicates the entire output from a specific source, e.g.,

7120-434: The supplies can be used more profitably elsewhere. However, the availability charge must be paid to the project company. A loan agreement is made between the project company (borrower) and the lenders. Loan agreement governs relationship between the lenders and the borrowers. It determines the basis on which the loan can be drawn and repaid, and contains the usual provisions found in a corporate loan agreement. It also contains

7209-567: The technical assistance of an experienced company under a technical assistance agreement. Basic contents of an O&M contract are: An agreement between the project company and a public-sector entity (the contracting authority) is called a concession deed. The concession agreement concedes the use of a government asset (such as a plot of land or river crossing) to the project company for a specified period. A concession deed would be found in most projects which involve government such as in infrastructure projects. The concession agreement may be signed by

7298-1226: The term's use, as some feel that it perpetuates an outdated concept of "us" and "them" . In 2015, the World Bank declared that the "developing/developed world categorization" had become less relevant and that they will phase out the use of that descriptor. Instead, their reports will present data aggregations for regions and income groups. The term " Global South " is used by some as an alternative term to developing countries. Developing countries tend to have some characteristics in common often due to their histories or geographies. For example, they commonly have: lower levels of access to safe drinking water , sanitation and hygiene , energy poverty , higher levels of pollution (e.g. air pollution , littering , water pollution , open defecation ), higher proportions of people with tropical and infectious diseases ( neglected tropical diseases ), more road traffic accidents , and generally poorer quality infrastructure . In addition, there are also often high unemployment rates, widespread poverty , widespread hunger , extreme poverty , child labour , malnutrition , homelessness , substance abuse , prostitution , overpopulation , civil disorder , human capital flight ,

7387-521: The time of the Asian financial crisis , but the subsequent downturn in industrializing countries was offset by growth in the OECD countries, causing worldwide project financing to peak around 2000. The need for project financing remains high throughout the world as more countries require increasing supplies of public utilities and infrastructure. In recent years, project finance schemes have become increasingly common in

7476-525: The urban population in the developing world in 2012, or about 863 million people, lived in slums . In 2012, the proportion of urban population living in slums was highest in Sub-Saharan Africa (62%), followed by South Asia (35%), Southeast Asia (31%) and East Asia (28%). The UN-Habitat reports that 43% of urban population in developing countries and 78% of those in the least developed countries live in slums. Slums form and grow in different parts of

7565-402: The world for many reasons. Causes include rapid rural-to-urban migration , economic stagnation and depression, high unemployment , poverty, informal economy , forced or manipulated ghettoization , poor planning, politics, natural disasters and social conflicts . For example, as populations expand in poorer countries, rural people move to cities in extensive urban migration that results in

7654-491: The world stage. The rise of China might imply the rise of the BRIC countries . The global issues most often discussed by developing countries include globalisation , global health governance, health, and prevention needs. This is contrasted by issues developed nations tend to address, such as innovations in science and technology. Most developing countries have these criteria in common: According to UN-Habitat , around 33% of

7743-475: The world's economies into four groups, based on gross national income per capita calculated using the Atlas method , re-set each year on 1 July: The three groups that are not "high income" are together referred to as "low and middle income countries" (LMICs). For example, for the 2022 fiscal year, a low income country is defined as one with a GNI per capita less than 1,045 in current US$ ; a lower middle-income country

7832-588: The world. Acid throwing is associated with Southeast Asia, including Cambodia. Honor killing is associated with the Middle East and the Indian Subcontinent. Marriage by abduction is found in Ethiopia, Central Asia and the Caucasus. Abuse related to payment of bride price (such as violence, trafficking and forced marriage) is linked to parts of Sub-Saharan Africa and Oceania. Female genital mutilation (FGM)

7921-518: Was widespread in the US oil and gas industry during the early 20th century. However, project finance for high-risk infrastructure schemes originated with the development of the North Sea oil fields in the 1970s and 1980s. Such projects were previously accomplished through utility or government bond issuances, or other traditional corporate finance structures. Project financing in the developing world peaked around

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