The World Bank
Among the many functions of the Worl
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Among the many functions of the World Bank is that of aiding countries obtain capital for highway projects which are financially desirable. While there are no set guidelines within the Bank for the exact type of roadway which the Bank with which the Bank will assist, there are several types of projects with which the Bank has been associated. One of the most common of these involves the country setting up a Toll Road Corporation (TRC), which is a public company that constructs, operates, maintains and receives revenue from the highway system. World Bank loans can be used to provide some of the construction costs, and the involvement of the World Bank can help the TRC raise additional funds privately. Participation by the World Bank can help other fears of lenders (such as those associated with a nation's political stability) and thus aid countries in attracting the long-term financing that is necessary for highway projects. This research examines two common toll road systems, the TRC and concessions, and considers the role of the World Bank to procuring funds for high priority highway projects.In addition to the toll road corporation option, countries may decide to have private enterprise compete for the highway project. The winning organization would build, finance, operate, maintain and receive the proceeds from the tolls on a specific highway. The World Bank is involved with this type of project by providing guarantees to the successful bidder, thus
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When this occurs, the World Bank can demand immediate repayment from the government involved in order to reimburse the payments made by the Bank. In some cases, the Bank will adopt a hard line in order to regain its payments; in other cases, the Bank may set out easier payment terms for the government with the expectation that the situation that led to the inability of the TRC to meet its obligation is a temporary one that will receive the requisite remedial attention. Private lenders are not at risk in any case since they receive their payments and care little if the payments are from the TRC, the government, or the World Bank.
The World Bank may not issue a contractual compliance guarantee, but may instead issue a late maturity guarantee. The decision to make one or the other is based on the particular situation at hand and the needs of the lenders who are providing the capital. A late maturity guarantee also covers principal and sometimes interest payments, and covers private lenders during the last years of a loan. Private lenders may take on the initial risk of a project (for example, for the first ten years) with the World Bank offering a guarantee for the principal (and possibly interest payments) due for the l
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Some common words found in the essay are:
World Bank, AADT Revenues, Regardless TRC, Tender ITT, Concessions TRCs, TRC TRC, World Bank's, Bank TRC, Bank Bank, world bank, TRCs Bank, highway system, toll road, private lenders, contractual compliance, user fees, highway project, highway projects, compliance guarantees, contractual compliance guarantees, late maturity, participation world bank, national highway system, late maturity guarantees, project world bank,
Approximate Word count = 5263
Approximate Pages = 21 (250 words per page)
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