Refinancing the Western Harbour Crossing Hong Kong Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Deal with the operational phase of privately owned urban infrastructure projects, Hong Kong Western Harbour Crossing, the toll road tunnel from West Kowloon Sai Ying Pun on Hong Kong Island, developed as part of the main program of the prestigious Airport support the development of Hong Kong's new airport in the early and mid-1990s. The tunnel opened for business in 1997 and worse financially then. Explores the hypothetical purchase of the tunnel, the portfolio of infrastructure assets, the famous bank acting for private capital. The bank is also interested in ensuring the long-term debt financing through non-recourse/limited appeal to potential buyers. Reconsider the economics of the project, evaluation of the tunnel, as the company is going, and the financing of purchase, and discusses the advantages of investing in it as a portfolio of solutions. We consider two corporate / project finance activities. First, as a fundamental function of the capital budget, according to western Harbour Crossing in the near future with respect to its initial value ("book value") in order to highlight issues related to sunk costs and irreversibility in underperforming real fixed assets are structured as The project is funded enterprises. Secondly, the prospective buyer sets out the financing decision and the approach that banks take in syndication very large financial commitment is very risky projects. "Hide
by Maria Ho, Frederik Pretorius Source: University of Hong Kong, 37 pages. Publication date: April 17, 2007. Prod. #: HKU648-PDF-ENG