VALUATION OF LOAN GUARANTEE AND LOAN GUARANTEE WITH DIRECT INVESTMENT IN TOLL ROAD INFRASTRUCTURE PROJECT
Whenever government wants private sector to contribute build infrastructure project, they have a particular level of return or risk about the value of projects which are must be fulfilled. The indicator that has the capability to capture that particular level of return or risk about the value of...
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| Format: | Final Project |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/36173 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Whenever government wants private sector to contribute build infrastructure
project, they have a particular level of return or risk about the value of projects
which are must be fulfilled. The indicator that has the capability to capture that
particular level of return or risk about the value of the project is Net Present Value.
In order government ensuring private sectors Net Present Value, the government can
give a guarantee.
In case an infrastructure project is financed with loan, the private sector will have
an obligation to repay that loan annually so there is a risk that private sector fail
to repay the loan. To handle that risk, the government can give loan guarantee or
government can give direct investment to help minimizing levels of loan.
In this study, Real option approach is used to evaluate guarantee, before calculating
and analyzing guarantee in like option form, project volatility will be estimated
by unbiased Generalized Conditional Expectation. Finally, the guarantee will be
valuated on risk neutral pricing condition |
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