Special Purpose Entities in Megaprojects: Empty Boxes or Real Companies?
PA
PERS
Appendix 3
Securitization
Project
Financing
Public Private
Partnerships (PPP)
Off Balance
Sheet-SPEs Leasing SPE
1. 1 SPE has Legal Personality A A A A A
1. 2 Limited liability company S U/S S S S
1. 3 Limited liability partnership S U/S S S S
1. 4 Mutual found S S S S S
1. 5 Corporation S U/S U/S S S
1. 6 Trust S S/R R/N S S
2. 1 Defined and Limited U A U UU
2. 2 Perpetual S N R S S
3. 1 Pre-defined Purposes A A A A A
3. 2 Apparent profit-making motive N S S R R
3. 3 Finance and structured finance A A S U U
3. 4 Tax optimization S S S U U
3. 5 Arbitrages R/N R/N R/N U R/N
3. 6 Balance sheet management U U S A/U U
3. 7 Partnering and alliances N U A S N
3. 8 Isolating and homogenizing cash
flows and business risk of a specific
asset, asset-class
AA S U A
3. 9 Eases asset transfer U S U S U
3. 10 Deals with legal and regulatory
requirements
UU S U U
4. 1 Insulation of Risk, Assets,
Liabilities, or Cash Flows
AA A A A
4. 2 Risk transfer, sharing, and spreading A A U S U/S
4. 3 Risk transformation A U S S U/S
4. 4 Securitization (assets and liabilities) A R/N R S N
4. 5 Project financing R/N A S S S
4. 6 Leasing N S S S A
4. 7 Commercial or fake transaction
(i.e., not true sales)
AA S A S
4. 8 Channeling, retention, and
exchanging of rights, licenses,
permits
R/N U A/U S R/N
4. 9 Channeling cash flows A A U U A
4. 10 Infrastructure Related Activities
(design and delivering,
operating, other services)
N A/U A/U S S
5. 1 Absence of Physical Assets S R R U/S R
5. 2 Financial assets and liabilities A U S U R
5. 3 Intangible assets (e.g., rights,
licenses, royalties, patents, etc.)
R U/S S S R
(continued)
