Q9. An SPV was set up in a country 'M' in USA to build a power plant in a major city in that country. The SPV was formed through an agreement among a major construction company in this sector and a group of banks. The SPV signed a BOT contract with the ministry of planning in the country "M'. With this in mind, answer the following questions:

a) Which party/parties and why among the above-mentioned parties is/are the sponsor/sponsors of the project?

b) Which category of sponsors does each sponsor belong to and why?

c)Which party/parties is/are the debtor/debtors? Why.

d) Some parties inside the Government of the said country argued for corporate finance and presented a case that (i) the government privatized such facility and sold it to the private sector, (il) it would be difficult to make such an arrangement, and (ili) it would take time. If you were selected to present a business case to those parties, what would be your major points to convince them in favor of the BOT arrangement (Make the required assumptions).

e) The SPV attempted to convince the lenders to finance the project through a proposal that he is ready to accept all the risks that might arise under the concession agreement with the contractor. If you were the lender, would you be more assured by this position and would go ahead with financing the project or would you take another position? Explain your answer.