III. FINANCIAL FACILITIES

So in short, it's a do it yourself tool for small businesses to raise these funds.

PRIVATELY FINANCED INFRASTRUCTURE PROJECTS

Although sometimes used as a generic expression for different forms of private financing of public infrastructure projects, in its literal meaning BOT refers only to one particular type of infrastructure project with private funding.

3. Financing infrastructure projects

III. PRIVATELY FINANCED INFRASTRUCTURE PROJECTS 226 247 47

5. Privately financed infrastructure projects.

III. PRIVATELY FINANCED INFRASTRUCTURE PROJECTSIn previous sessions, the Commission had used the term quot build operate transfer quot (BOT) to refer to its work in this field.

XI. PRIVATELY FINANCED INFRASTRUCTURE PROJECTS 21

Accountability for results in this area rests with the UNCDF Microfinance Unit. Some highlights

programmes in local development and micro finance and initiate new investments.

2. Commends the Commission for the work on privately financed infrastructure projects, which culminated in the adoption of the UNCITRAL Legislative Guide on Privately Financed Infrastructure Projects,Ibid., para. 372. as well as the important progress made in its work on receivables financing

II. Privately financed infrastructure projects

The Commission had also considered an initial draft of chapter II, quot Parties and phases of privately financed infrastructure projects quot (A CN.9 438 Add.2), which had contained general background information on the concept of project finance, the parties to a privately financed infrastructure project and the phases of their implementation.

As an introduction to privately financed infrastructure projects, it is proposed that chapter II contain general remarks on the concept of project finance, the parties to a privately financed infrastructure project and the phases of its implementation.

8. Stresses the urgent need to endow the International Monetary Fund with adequate resources to provide emergency financing to countries affected by financial crises as a result of the high volatilities of international capital flows

11. Financial Fund for the Dev. of River Plate Basin (FONPLATA)

Governments and financial institutions are encouraged to contribute generously to the Water and Sanitation Trust Fund, the Slum Upgrading Facility and other technical cooperation trust funds to enable UN Habitat to mobilize public investment and private capital for shelter and basic services.

The availability of such security was considered crucial for the availability of financing for privately financed infrastructure projects.

31. It was pointed out that the section discussed basic issues of privately financed infrastructure projects, such as private sector participation in public infrastructure and the concept of project finance.

Or the deposits can be investments in D.E. Shaw s funds and the loans can be the complex derivatives that make up D.E. Shaw s portfolio.

A. Legal framework for privately financed infrastructure projects

It is proposed that the upgraded Fund include a grant element with a view to achieving an overall target of 500 million that would comprise the current revolving facility of 50 million and a grant facility with an eventual target of 450 million.

3. Lenders and international financial institutions Due to the magnitude of the investment required for a privately financed infrastructure project, loans are often organized in the form of syndicated loans with one or more banks taking the lead role in negotiating the finance documents on behalf of the other participating financial institutions, mainly commercial banks.

As an introduction to privately financed infrastructure projects, draft chapter II contained general remarks on the concept of project finance, the parties to a privately financed infrastructure project and the phases of its implementation.

The report calls for co financing of MDG based investment, and concludes that aid financed infrastructure development and human capital investments can make a vast difference in promoting investments, especially FDI.

Developing countries also had to be given debt relief, including grant based financing and 100 per cent debt cancellation.

85. It was stated that the stability of the tax regime was crucial for the success of privately financed infrastructure projects.

Financial mechanisms and market based instruments

Equivalence of acquisition financing devices to security rights

DRAFT LEGISLATIVE GUIDE ON PRIVATELY FINANCED INFRASTRUCTURE PROJECTS

The SRCF would be used for the following types of enabling activities

UNCDF with over 20 years experience in microfinance and microfinance projects in over 40 countries 75 percent of which are in Africa.

Third, the success of China s financial system was built on state owned banks financing of large infrastructure projects and foreign financing of export production through FDI and trade. The financial system has yet to address adequately the challenges of financial inclusivity, particularly funding of SMEs and rural areas, and exposure to excess capacity in selected industries.

II. PARTIES AND PHASES OF PRIVATELY FINANCED INFRASTRUCTURE PROJECTS

40. The draft legislative guide on privately financed infrastructure projects was of crucial importance for developing countries.

The upgraded Fund, with both the loan and grant facilities, could become operational in early 2006 with the pledges received to date.

Introduction and background information on privately financed infrastructure projects (A CN.9 444 Add.1)

Stresses that regular resources, because of their untied nature, will continue to be the foundation of UNCDF programme activities and that the effectiveness of UNCDF hinges on its access to predictable and sustained multi year funding to finance its programmes in local development and microfinance

Also, UNCITRAL prepared the UNCITRAL Legislative Guide on Privately Financed Infrastructure Projects17 and the associated Model Legislative Provisions on Privately Financed Infrastructure Projects18 to assist countries in establishing a legal framework favourable to private investment in public infrastructure.

This financial sector approach is considerably different from the historical UNCDF approach to making individual investments in promising MFIs.

We support the establishment of a democracy fund and an international finance facility.

UNCDF niche in building inclusive financial sectors

Draft chapters of a legislative guide on privately financed infrastructure projects

Box 2 An alternative way to finance telecom infrastructures