Estimation of foreign exchange exposure for public-private partnership infrastructure projects
Economic foreign exchange (FX) exposure is an important risk factor which affects Public-private partnership (PPP) projects in developing countries. The risk exists because PPP projects typically sell their outputs domestically and generate revenues in local currency, while their financing costs and...
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| Tác giả khác: | |
| Định dạng: | Luận văn |
| Ngôn ngữ: | English |
| Được phát hành: |
2010
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| Những chủ đề: | |
| Truy cập trực tuyến: | https://hdl.handle.net/10356/36298 |
| _version_ | 1826120540276916224 |
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| author | Ehrlich, Matthias |
| author2 | Tiong Lee Kong, Robert |
| author_facet | Tiong Lee Kong, Robert Ehrlich, Matthias |
| author_sort | Ehrlich, Matthias |
| collection | NTU |
| description | Economic foreign exchange (FX) exposure is an important risk factor which affects Public-private partnership (PPP) projects in developing countries. The risk exists because PPP projects typically sell their outputs domestically and generate revenues in local currency, while their financing costs and operating and maintenance costs are often denominated in hard currencies. Traditionally, FX risk is tested through the use of risk factors on revenue and costs or by adopting conservative assumptions in the cash flow. While this method provides a range of the risk value based on scenarios it does not give the potential FX risk exposure. What constitutes minimum and maximum risk values is often defined on the basis of subjective judgments. This research contributes to the solution of this problem with a methodology to quantify annual economic FX exposure in project companies financed under project finance modality. The application of the developed FX index to describe the project feasibility on economic FX exposure is superior as it is an extra tool which is linked to the financial models without the ambiguities to incorporate risk factors in the cash flow. It is a unique mathematical process for dimensioning currency risk on a various set of cash flow positions. |
| first_indexed | 2024-10-01T05:18:06Z |
| format | Thesis |
| id | ntu-10356/36298 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T05:18:06Z |
| publishDate | 2010 |
| record_format | dspace |
| spelling | ntu-10356/362982023-03-03T19:20:44Z Estimation of foreign exchange exposure for public-private partnership infrastructure projects Ehrlich, Matthias Tiong Lee Kong, Robert School of Civil and Environmental Engineering Hans Wilhelm Alfen DRNTU::Engineering::Civil engineering::Construction management Economic foreign exchange (FX) exposure is an important risk factor which affects Public-private partnership (PPP) projects in developing countries. The risk exists because PPP projects typically sell their outputs domestically and generate revenues in local currency, while their financing costs and operating and maintenance costs are often denominated in hard currencies. Traditionally, FX risk is tested through the use of risk factors on revenue and costs or by adopting conservative assumptions in the cash flow. While this method provides a range of the risk value based on scenarios it does not give the potential FX risk exposure. What constitutes minimum and maximum risk values is often defined on the basis of subjective judgments. This research contributes to the solution of this problem with a methodology to quantify annual economic FX exposure in project companies financed under project finance modality. The application of the developed FX index to describe the project feasibility on economic FX exposure is superior as it is an extra tool which is linked to the financial models without the ambiguities to incorporate risk factors in the cash flow. It is a unique mathematical process for dimensioning currency risk on a various set of cash flow positions. Doctor of Philosophy (CEE) 2010-04-30T08:30:36Z 2010-04-30T08:30:36Z 2010 2010 Thesis Ehrlich, M. (2010). Estimation of foreign exchange exposure for public-private partnership infrastructure projects. Doctoral thesis, Nanyang Technological University, Singapore. https://hdl.handle.net/10356/36298 10.32657/10356/36298 en 334 p. application/pdf |
| spellingShingle | DRNTU::Engineering::Civil engineering::Construction management Ehrlich, Matthias Estimation of foreign exchange exposure for public-private partnership infrastructure projects |
| title | Estimation of foreign exchange exposure for public-private partnership infrastructure projects |
| title_full | Estimation of foreign exchange exposure for public-private partnership infrastructure projects |
| title_fullStr | Estimation of foreign exchange exposure for public-private partnership infrastructure projects |
| title_full_unstemmed | Estimation of foreign exchange exposure for public-private partnership infrastructure projects |
| title_short | Estimation of foreign exchange exposure for public-private partnership infrastructure projects |
| title_sort | estimation of foreign exchange exposure for public private partnership infrastructure projects |
| topic | DRNTU::Engineering::Civil engineering::Construction management |
| url | https://hdl.handle.net/10356/36298 |
| work_keys_str_mv | AT ehrlichmatthias estimationofforeignexchangeexposureforpublicprivatepartnershipinfrastructureprojects |