Evaluating Projects with the Benefit - Cost Ratio Method - Perpective and terminology analyzing public projects

7 important questions on Evaluating Projects with the Benefit - Cost Ratio Method - Perpective and terminology analyzing public projects

Who are ultimately the owners of a public project?

The ultimate owners are the tax payers.

What are the benefits of public projects?

Favourable consequences to the public.

What are the disbenefits of public projects?

Negative consequences to the public.
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Give a remark on public projects that provide utility services in relation to cost;

Projects that provide utility services generally earn direct revenues from users covering their costs.

Give a remark on private and public projects in Europe.

Very mixed public-private system.

What is a very popular construction used in mixed public-private systems in Europe?

PPP | Public Private Partnership
Collaboration between government agencies and a private-sector company. Used to finance, build and operate project (transportation, convention centers)

What is a SPV?

Special Purpose Vehicle
Subsidiary created by a parent company to isolate financial risk. Its legal status as a separate company makes its obligations secure even if the parent company goes bankrupt.

SPE | Special Purpose Entity.

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