Observing the deficiencies of traditional methods in meeting the demands
of today&rsquo / s infrastructure development has been motivating countries
towards privatization of these sectors. However, due to the differences in
these sectors as compared to other businesses, privatization can not be
performed without strict regulations. Today, concession agreements like
BOT models seem the best way for solving the problems.
Financing of concession agreements plays a key role. In Turkey, most
BOT projects are financed by capital structure that has a maximum debt
ratio, which is allowed by the law. The objective of this study is to examine whether the maximum amount of
debt ratio is the optimum amount of debt ratio. Optimization is carried out
by analyzing the trade off between benefits of tax shield and the loss due
to financial failure as a result of change in leverage, assuming other
things are the same.
A theoretical framework is developed for the analysis by selecting
Adjusted Present Value Method as a financial tool. Energy generation
sector in Turkey is analyzed, stock market data in Turkey is used for the
analysis, and a bankruptcy prediction model is proposed for BOT projects
in Turkey. Finally, by using the theoretical framework, an actual BOT
model hydro electric power plant proposal is analyzed for optimization of
capital structure.
| Identifer | oai:union.ndltd.org:METU/oai:etd.lib.metu.edu.tr:http://etd.lib.metu.edu.tr/upload/1051887/index.pdf |
| Date | 01 January 2003 |
| Creators | Arici, Erdem |
| Contributors | Arikan, Metin |
| Publisher | METU |
| Source Sets | Middle East Technical Univ. |
| Language | English |
| Detected Language | English |
| Type | M.S. Thesis |
| Format | text/pdf |
| Rights | To liberate the content for public access |
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