A Brief Report On Tianjin Plastics Essay

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Tianjin Plastics were undertaken as project finance ventures. Project financing is a way in which large standalone investments may be financed from their own assets and cash flows, without recourse from the assets of the equity holders themselves. Project financing is the primary method was taking for the massive infrastructure investment throughout many places such as China, Malaysia, Indonesia, the Philippines, India, Bangladesh, Pakistan, and other emerging economies. However, despite that the complexity of project finance (because they were detailed agreements that require thousands of pages of documentation), was extremely uncomfortable with the problems posed by the Tianjin proposal.
In the past three decades, project finance has contained some of the largest individual investments, including: British Petroleum’s financing of its interests in the North Sea (totaling $972 million in 1972); the Trans-Alaska Pipeline, a joint venture between Standard Oil of Ohio, Atlantic Richfield, Exxon, British Petroleum, Mobil Oil, Phillips Petroleum, Union Oil, and Amerada Hess (1978). Each of these investments represent capital expenditures that exceed the ability of a single firm to finance. However, through a joint venture arrangement, the higher risks more than normal that absorbed by the capital employed could be managed.
The China project was established as an individual legal entity, and it separates from the legal and financial responsibilities of its
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