The Difficulties Which International Students Face

The Difficulties Which International Students Face Introduction: This article is about the difficulties which international students face, especially for Asian students, including thinking styles, learning attitudes and writing and presenting styles. In spite of its publication date, it is still helpful for us to understand the international students` situation abroad. In the text, the authors argue all the issues are rooted in traditional culture. In general, the authors` arguments are reasonable, but to some specific cases their views are no longer suitable. The reasons involve the development of education within the approximate twenty years and their limitations of visual views. In this paper, evaluations about every main idea are presented. About the situations which the authors` ideas are not suitable, some suggestions are indicated. As for the applicable arguments, more evidences are provided to back up. Background: In this day and age, quite a few of Asian students go abroad to study. However, there are some typical difficulties they must overcome because of their innate tendency. In Ballard and Clanchy`s research, the innate tendency totally stem from oriental tradition, which is a typical viewpoint in the past. Some subsequent research taken by David Kember and Lyn Gow indicates that the issues result from the curriculum and teaching environment [1]. With the development of the education system in Asian countries, the issues seem to be fade away during recent years. Asian international students become more and more familiar to western culture, and they can cope with the assignment from their lecturer more smoothly. This makes investigations in past time become unsuitable, so some updating surveys are necessary to cover new situations. Summary: The title of the article is â€Å"Cultural Variation: Difficulties for Student Studying Abroad†. It is from a book named â€Å"Study Abroad: A Manual for Asian Students† written by Ballard and Clanchy (1984). In this article, the authors argue three main difficulties that Asian international students face in their studying process. Further, the authors suggest Asian students adjusting their studying style for successful study abroad. The first main idea in the text is about variations of thinking styles. As the authors say, different thinking and learning purposes lead to different results, which stem from varying cultures. A particular example of a Japanese student who adjusted his purpose and adapted his essay structure to meet his lecturer`s requirement is utilized to support the main point. The variation in learning attitudes is argued as the second main idea. In the authors` opinion, different educational traditions create different learning attitudes. Then different learning approaches, including reproductive, analytical and speculative, are presented in particular education levels, although they are not separated totally. The authors quote three Asian students` words and describe an Indonesian postgraduate`s situation to back up their main idea. The other main idea concerns differences in writing and presenting styles. Five distinct writing patterns, including English, Romance, Russian, Semitic and Oriental patterns, are described in the text (Kaplan 66: 1-20). As indicated, a typical example of a Thailand student whose thesis was crossed out by his Australian supervisor suggests that different writing styles differ widely. As the authors` suggestions, a more analytical and critical learning approach is expected for Asian international students to succeed in their study. Critique (general): Generally speaking, the three main difficulties pointed out in this article are reasonable. Although this article was published in 1984, the problems still exist in current international students. The influence stemming from traditional culture is significant, which cannot be eliminated within about twenty years. The thinking and writing styles which are trained during their studying process imperceptibly, still influence international students. Something different, however, has happened in these twenty years. Internationalization has been an unstoppable tendency, for which relationships between countries has become more and more closed. In the trend, education internationalization is a representative one. Compared with the situation in 1984, much more students go abroad to study, especially for students from developing countries. With the number of international students increasing, abroad studying is no longer mysterious or unattainable. Most students who are ready to go abroad can get much useful information from internet and relevant agents. As the result of this, students are relative familiar to the education environment abroad. Additionally, they usually can get experiential knowledge from forthgoers. Thus, they are able to adjust themselves to the expectations of foreigner universities more easily, In addition, a series of language tests and record examinations are developed to ensure that students who are admitted b y foreign universities can survive in another country. Critique (specific): As the statement above, the main ideas argued in this article is still reasonable at present, however, the situation has changed. So to a certain extent, the descriptions in the text are no longer suitable. As the authors` assertion, the variations in thinking styles stemming from traditional cultures, made the Japanese student fail in his first year. Considering the source of variations, it must be true, but this example should be an extreme one. Normally, the thinking style of oriental students is implicative. They always make effort to avoid evaluating topics directly. When they are considering a topic, they usually think over the influence of background firstly. With the introductions of western educational culture, however, most students are likely to compare the views and evaluate the topic, although they may describe the background at first. In Chinese secondary school, many assignments are to conclude the main ideas of prepared texts and evaluate these main ideas from your own viewpoint. Through training like this students obtain the capability to assess the relative merits. So the description as the text presented, only may happen in extreme case. With the increasing of the fam iliarity to western thinking pattern, the similar extreme case should be less likely to happen. About the different learning strategies mentioned in this article, the authors claim that it is needed to develop a more analytical and critical learning style for many Asian students. It should be a believable recommendation at that moment. However, in today`s school, not only universities or colleges, but also secondary schools, it is paid attention to analysis ability. Basically, the teachers and lecturers encourage students to ask questions and think more deeply. In this way, students are required not only to remember the knowledge points, but also to understand how the process is going. In addition, many universities in China establish funds to support undergraduates to take experiments. Then, students who want to do some research in particular fields are encouraged to apply them. In this way, students` speculative capabilities are cultivated. Furthermore, according to relevant research, there is no significant difference between Australian and Asian students [2]. As reported, A sian students are not rote learners. In other words, the reproductive learning strategy is not directed towards Asian students. Then, for Australian students, the best way to learn is also to remember and understand by heart. For these reasons, the authors` assertions about these three learning approaches are not in accordance with facts and suitable to the development of education. Concerning writing styles, the authors cite Robert Kaplan`s theory to explain the varying writing styles successfully. For oriental writers, explaining the issue directly is a blunt way which lacks of ideations. In their views, a better way to express their ideas is to describe the background and the influence factors as implications. The end results should be obtained by readers themselves. As the authors suggest, this indirect writing approach is not suitable to academic thesis in Australian universities. In western scholars` views, the â€Å"relevant descriptions† are not relevant at all. It is a real difference between western and eastern writing skills, while it is unnecessary to discuss which one is more advanced. Expect from the variations between different cultures, the differences between each academic discipline are also mentioned in the text. In this day and age, more and more interdisciplines are developed, for which flexible writing styles are required. Additional ly, as a relatively objective writing style, science and engineering articles should be paid more attention to attract readers. Conclusions: In this paper, in connection with every main point mentioned in the original article, evaluations are provided. Generally speaking, the authors` main ideas are still applicable at present stage, although in this article there are some details should be changed to suit modern education. When the authors are comparing with Asian students` works and Australian lectures` expectations, extreme examples are cited. This is the biggest weakness, because it ignores the general status. Implications of this article are that student who study abroad should learn how to adjust himself to the requirement. References: David Kember, Lyn Gow: A Challenge to Anecdotal Stereotype of the Asian Student, 1991. F. Sushila Niles: Cultural Differences in Learning Motivation and Learning Strategies: A Comparison of Overseas and Australian Students at an Australian University, 1995.

Individual Learning Essay

Work-study Enterprise (WSE), founded in 1994 in Matteson, Illinois offers childcare and early childhood education. WSE believes in developing the whole child and strives to show God’s love to all entering its doors. WSE enrollment is open to kid’s age 2 through 15 and offers a safe and positive environment for all. In addition, the organization offers before and after school programs, to include summer camps. A for-profit organization, WSE seeks to keep enrollment high in order to make child care cost affordable for all in the Chicago land area (Mitchell & Mitchell, Work-study Enterprise, April 4, 2013). SWOT Analysis Balanced Scorecard According to Blocher (2010), the balanced scorecard (BSC) is an accounting report that includes the firm’s critical success factors in four areas: (1) financial performance, (2) customer satisfaction, (3) internal processes, and (4) learning and growth (p.11). The following is a balanced scorecard for Work-study Enterprise Inc. Critical Success Factor Objective Measure Target Initiative Financial performance Increase Income Annual growth of income from specific courses +5% by end of fiscal year 20141 Offer more specific topics of tutoring (algebra, statistics, etc.) Reduce overhead expenses Annual Expenses -10% by end of fiscal year 20142 Explore tax benefits, give philanthropic contributions, and apply for government subsidies Customer satisfaction Retain Current Enrollees Enrollee turnover -10% by end of fiscal year 20143 Improve communication between staff and parents Enroll New Clientele Clientele enrollment count 25 additional contracts by end of fiscal year 20144 Improve marketing campaigns and courses offered to attract new clients Internal Process Increase GPA Number of grading periods to raise letter grade in a particular subject < 6 weeks Implement strict policy and procedure for increasing letter grade/GPA Learning and Growth Improve Tutorial Service through training classes Number of tutors lacking new tutorial training Increase by 50% by end of 2014 Implement a tutorial training program, providing training opportunities each month Discussion of Critical Success Factors (CFSs) CFSs are defined as â€Å"the limited number of areas in which results, if they are satisfactory, will ensure competitive performance for the organization† (Ram & Corkindale, 2014, p.152). Work-study Enterprise (WSE) will be able to deliver quality tutorial services for affordable prices, when the costs and quality of its services are addressed. The implementation of critical success factors will allow WSE to process each success factor into a particular category. Work-study Enterprise, Inc., can accomplish this by focusing on financial and tutorial goals that are in sync  with one another. Work-study Enterprise can achieve this by changing the way in which the company hires tutors. Financial The first CSF is financial performance. Financial performance is important because it measures the profitability and market value which are good indicators of how well the firm satisfies its owners and shareholders (Blocher, 2010, p.11). If a company can increase profits while decreasing its overhead, it will be in a better position to maintain positive profits. Profitability is gained strictly on how well WSE choose each critical success factor. The bottom line is to satisfy the owners. This critical success factor is not mutually exclusive, and depends on the other CFSs to keep Work-study Enterprise Inc doors open for business. Customer Satisfaction The second CSF is customer satisfaction. Customer satisfaction is important because satisfied customers tend to be loyal and repeat buyers. Measures of quality, service, and low cost, are three good indicators of how well a company satisfies its customer (Blocher, 2010, p.11). The objective here is for WSE to retain current enrollees and enroll new clientele. Current enrollees are the ones that continue to pay the bills (operating expenses), and enrolling new clientele helps increase profits thus assisting the financial CSF. Work-study Enterprise is looking to add online learning because it will increase the efficiency and effectiveness of it program (Cheawjindakarn, Suwannatthachote, & Theeraroungchaisri, 2012, p.61). This can be accomplished by hiring online tutors. A case study found that in order for online-course resources to be used effectively, the CFSs that need to be considered are: human factors pertaining to the instructors; the instructors’ and students’ tec hnical competency; the instructors’ and students’ mindset (about learning); the level of collaboration intrinsic in the course; and the level of perceived IT infrastructure and technical support (Soong, Chan, Chua, & Loh, 2000, p.102). These same CFSs align with WSE success factors. The human factors pertaining to the instructors can be found under financial CSF. The instructors and students technical competency is important in the learning and growth CSF. The instructors and students mindset about learning can be found in the internal process of improving the letter grade or increasing a  student’s GPA in less than 6 weeks. The level of collaboration intrinsic in the course and the level of perceived IT infrastructure and technical support can be found in customer satisfaction critical success factor. Internal Process The third CSF is internal process. WSE internal process is important because it measures efficiency and effectiveness of its services (Blocher, 2010, p.11). Greater efficiency and effectiveness can result in satisfied clients and more business. Raising GPAs and/or letter grades in tutorial services are very important. If a student is failing in a subject or is having a hard time comprehending the way his or teacher instructs, parents generally seek tutorial services. If WSE are able to help students by raising their GPA or letter grade, clients will want to continue with their services. This is why the choice to raise a letter grade in less than 6 weeks is a critical success factor. Learning and Growth The fourth CSF is learning and growth. Learning and growth is important because it can help develop and utilize human resources and strategic goals (Blocher, 2010, p.11). By increasing the learning of the tutors, not only do the tutors become better and more efficient in their services, the parents/students become more satisfied. The addition of a tutorial training program will help with the growth of the tutors and the enterprise (Cherryl Mitchell, Work-study Enterprise, April 4, 2014). Tutoring has become an increasingly effective tool for academic support in the last 25 to 30 years (Holliday, 2012, p.21). This is why many universities and colleges offer tutorial services, however, outcomes may vary depending on the tutor to student interaction. Evaluation of Work-study Enterprise Inc. Financial Reducing the overhead expenses in order to increase higher revenues is the objective for any rationale organization, if not all. This is because every company would like to maximize its profits in the most efficient way while still providing an effective service to its clientele. Work-study’s goal is to increase its profits by 5 percent, and by offering more specific  topics of tutoring such as algebra, statistics, chemistry, etc, the tutorial service is on track. Offering a wider range of courses to tutor will target new customers and offer more services to existing clients thus bringing in more profits for the company. By exploring tax benefits, giving philanthropic contributions, and applying for government subsidies, the company can help reduce overhead. In addition, if the company increases its efficiency in the internal process CSF, a decrease of 10 percent of its overhead can be obtained by year end 2014. The financial CSF appears to be on target at Work-study Enterpr ise, Inc. It may be impossible to eliminate all overhead; however, taking advantage of the aforementioned can minimize some overhead expenses. Customer Satisfaction One objective under the customer satisfaction CFS is to retain current enrollees. A growing body of empirical work supports the fundamental logic that customer satisfaction should positively influence customer retention (Anderson, Fornell, & Mazvancheryl, 2004, p.173). Work-study Enterprise realizes that their customers are the key to their success thus stressing the importance of great communication. Furthermore, satisfied customers are able to make positive recommendations to others. Since its inception in 1995, communication between staff and parents is of the utmost importance to Work-study Enterprise. Through great communication WSE have been able to reiterate special incentives to existing customers, receive feedback about the services rather good or bad, and settle disputes in a prompt manner. Implementing good lines of communication between its staff and parents has allowed WSE to keep clients for as long as the program will permit the child’s age. In 2010, Work-study Enterprises signed a contract with District 162, which allowed WSE to offer its services to all the schools in its district. By securing a contract with District 162, WSE is on track for meeting the objective of adding 25 more contracts. Furthermore, as a result of signing with the district, WSE marketing campaign has opened opportunities for securing more districts. Internal Process Work-study Enterprises Inc. seeks to increase the letter grade or GPA of a student less than 6 weeks. This time starts on the first day a student  meets with a tutor and ends 6 weeks after. Though students receive report cards 4 times a year or every 9 weeks, WSE likes to guarantee 6 weeks to increase a child’s letter grade. If the grade is not increased, the tutors will have an additional 3 weeks to spend more time with the student (s). The implementation of strict policies and procedures for increasing letter grades/GPAs has allowed WSE clients to pass their courses, as well as retain satisfied customers. Learning and Growth In the past, clients of Work-study Enterprise have committed on the disparity in training of its tutors. The majority of the tutors at WSE are high-school and current college students. However, the disparity in training will be rectified by offering a tutorial training each month. The critical success factor seeks to increase to their goal of 50 percent by the end of 2014. The addition of this tutorial program each month has allowed tutors to provide a greater learning opportunity for the students. In addition, WSE is in the process of hiring a new trainer to focus specifically on training tutors. Overall Work-study Enterprise Inc. is on track of achieving each of its critical success factors by the end of 2014. As previously mentioned, critical success factors are interdependent. In other words, all critical success factors must work in tandem in order for Work-study Enterprise Inc. to achieve its strategic goals. The bible tells us â€Å"Faith without works is dead† (James 2 :26 KJV). Just because one prays does not mean that his business will be successful. Business owners must develop a strategy and work that strategy. Work-study Enterprise Inc have been working their strategy for nearly a decade and this is why their company is still going strong. Reference Anderson, E.W., Fornell, C. & Mazvancheryl, S.K. (2004). Customer satisfaction and shareholder value. Journal of Marketing, 68(4). p. 172-185 Retrieved from http://www.jstor.org/stable/30162024 Blocher, E. J., Stout, D. E., Juras, P.E., & Cokins, G. (2010). Cost Management: A Strategic Emphasis (6th ed.). Boston, MA: McGraw-Hill Irwin Publishing. Cheawjindakarn, B., Suwannatthachote, P., & Theeraroungchaisri, A. (2012). Critical success factors for online distance learning in higher education: A review of the literature. Creative Education, 3, p.61-66. Retrieved from http://search.proquest.com/docview/1353565510?accountid=12085 Holliday, T. (2012). Evaluating the effectiveness of tutoring: an easier way. The Learning Assistance Review17(2). p. 21-32. Retrieved from http://go.galegroup.com/ps/i.do?id=GALE%7CA308883380&v=2.1&u=vic_liberty&it=r&p=AONE&sw=w&asid=a5e72816293a40e9cba7076990429c51 Ram, J., & Corkindale, D. (2014). How â€Å"critical† are the critical success factors (CFSs)?: Examining the role of CFSs for ERP. Business Process Management Journal, 20(1). p.151-174. Retrieved from 10.1108/BPMJ-11-2012-0127 Soong, M.H., Chan, H.C., Chua, B.C., & Loh, K.F. (2001). Critical success factors for on-line course resources. Computer & Education, 36, p.101-120. Retrieved from http://www.nc12z.com/uploadfile/cms/books/269/ts269019.pdf

Review of Evidence for Erik Eriksons Identity Theory of...

Review of Evidence for Erik Eriksons Identity Theory of Personality Sarah Gruning Wichita State University Review of Evidence for Erik Eriksons Identity Theory of Personality The personality theory that I have chosen to focus on will be Identity Theory. It was developed by Erik Erikson in the nineteen hundreds. Erik Erikson believed that every individual goes through a certain number of stages to reach his or her full development or potential (Erikson, 1994). He theorized that a human being goes through eight different stages ranging from birth to death (Erikson, 1994). Identity Theory focuses on eight psychosocial stages of development, and an epigenetic principle of maturation (Schultz, 2008). The stages of development are†¦show more content†¦role confusion stages range from ages twelve to nineteen and is the stage in life where we explore who we are, who we want to be, and where we are headed in life. The Intimacy vs. isolation stage ranges from ages twenty to thirty-four, and is when we decide whether we are loved by others, feel rejected by others, and if we want to spend life with someone else or alone (Erikson, 1994). The Generati vity vs. stagnation stage ranges from ages thirty-five to sixty-five and is when we ask ourselves if we produced anything of value in our lives, and if not then we find some way to fulfill that desire (Erikson, 1994). Lastly, the Ego integrity vs. despair stage ranges from sixty-five years old until death, and is when we look back on our lives and decide if we made an impact or made a difference while we were on this earth (Schultz, 2008). This theory attempts to explain why individuals who have had a rough or neglectful childhood have trouble adjusting in adult life, or why adolescents who had trouble finding and identity have issues later in life (Erikson, 1994). 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Gaining Roots Globally In Both Government Finance Essay - Free Essay Example

Sample details Pages: 13 Words: 3831 Downloads: 9 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? ABSTRACT: Project finance is increasingly gaining roots globally in both government (public) sector and the private sector. Projects that are project financed are mostly large infrastructure like high-speed rail, electricity generation plants, wind turbine, telecommunication tower and multifaceted infrastructure undertakings. More often than not, majority of project- financed projects are influenced by government. Don’t waste time! Our writers will create an original "Gaining Roots Globally In Both Government Finance Essay" essay for you Create order This brings to the fore, financing of a project with a flexible cash flow which is usually the concern of the lender (debt provider) who accepts future revenues from a project as a guarantee on a loan. Project finance has an attribute of non-recourse, that notwithstanding, it allow lenders to always look for guarantees mostly from sponsors for effective cash flow that can make up for the debt and also bear risk that they can mitigate. Hence, the need for security as a mechanism of defence for the lender since there is the need for diverse provisions for the cash flow assigned to them, thereby guaranteeing payment of the debt. The paper hereby, looks at the different elements of securitisation; the lenders risks and how elements of security are employed in their mitigation WORD COUNT: In accordance with instructions provided for each course. Footnotes must be included in the word count. PRESENTED TO: MR STEPHEN DOW CONTRACT CONCERNING PLAGIARISM I, the undersigned, have read the Code of Practice regarding plagiarism contained in the Students Introductory Handbook. I realise that this Code governs the way in which the Centre for Energy, Petroleum and Mineral Law and Policy regards and treats the issue of plagiarism. I have understood the Code and in particular I am aware of the consequences, which may follow if I breach that code. I also authorise the centre to scan the e-copy of my research paper through the Plagiarism Detection Software to detect plagiarism SIGNED: ____________________________ Date: Day Month Year TABLE OF CONTENTS INTRODUCTION Project finance is increasingly gaining roots globally in both government (public) sector and the private sector. Projects that are projects financed are mostly large infrastructure like high-speed rail, electricity generation plants, wind turbines, telecommunication towers and multifaceted infrastructure undertakings with majority of them influenced by government. This brings to the fore, financing of a project with a flexible cash flow which is usually the concern of the lender (debt provider) who accepts future revenue from a project as a guarantee on a loan. Project finance has an attribute of non-recourse, that notwithstanding, lenders usually look for guarantees mostly from sponsors (companies, partnerships or joint ventures or the host government represented by a government agency or state owned entity) for effective cash flow that can make up for the debt and also bear risk that they can mitigate. Lenders who provide the principal are very crucial and would not come on board unless there is mitigation and allocation of risks and security to ensure the debt recovery. Although the security sought for will not escalate the proficiency of the project and does not guarantee certainty of repayment, however, it ensures that if something goes wrong, lenders do not lose everything. Lenders mostly take some amount of credit risk on the project, thus to determine the practicality of the project. They consider that it is technically feasible and that its commercial forecasts so they can evaluate the available risks and design a sponsoring structure that will allocate those risks. By this, lenders give room for due diligence. Chapter one ponders on the concept of project finance and the concept of security involved in project finance. Chapter two highlights the elements of securitisation in project finance which is not too extensive an option available for debt recovery. Chapter three briefly assesses the various risks which a lender may be exposed to and attempts t o identify how security measures are opted to mitigate such risks. Chapter 4 concludes the paper by echoing some salient points about security in project finance. An analytical approach will be employed in the deliberation of these issues. The concept of Project Finance The concept of project finance cannot be discussed without an attempt to define project finance and its basic principles. From it unset, project finance is a method of financing where the lender accepts future revenues from a project as a guarantee on a loan. Contrary to this is the traditional method of financing whereby the borrower assigns to the lender a physical or monetary unit (collateral) in the case of default. Practically, most projects are financed by a combination of both traditional methods as well as by guarantee-backed loans. By implication, project finance is suggestive by its name in that, it refers to raising capital by any means to pay for any project. This however refers to a narrow but increasingly more prevailing method of financing capital- and risk-intensive projects across a broad array of industries. Many learned scholars have attempted defining project finance with some of these definitions worth citing. A financing of a particular economic unit in which a lender is satisfied to look initially to the cash flows and earnings of that economic unit as the source of funds from which a loan will be repaid and to the assets of the economic unit as collateral for the loan.[1] From the above definition, it can be deduced that, the definition is informative since project finance is project specific meaning that, it focuses on the financing of a specific project which can mean anything subject to what the parties define it to be. Moreover, a critical consideration to the word initially in the definition above reveals that, security as collateral is only subordinate to the debt repayment via the cash flow of the project. When project finance becomes non-recourse to the sponsor, it brings to bear a limited impact on the solvency of the sponsor which aims at arranging to borrow for a project which will profit the sponsor at large.[2] However, oil projects that involves major multinational companies which are financed majorly from the balance sheet of the sponsor normally allows the dispersal of the risk involved from the sponsor to other parties.[3] The deregulation of worldwide utilities and the privatisation of public sector capital investment have giving rise to the recent project financed projects in both developed countries and developing countries. For instance, in 2010 India became the utmost dynamic project-finance market with over $52 billion worth of deals, coming from 131 loans. Spain was second with 67 loans for a total of $174 billion and Australia in the third place with 32 loans worth $14.6 billion.[4]This is to underscore that public sector infrastructure that can take the form of natural resources projects like (gas, mining and oil), independent power projects (IPPs), mainly for power generation in the electricity sector like Sunon Asogli power plant of Ghana, public infrastructure (transport, roads, public buildings, etc.) for example Ghanas millennium challenge account (MCA) will be on the increase to benefit the people. Categorically, divergent financing mechanisms could be put in place for different project in project finance; conversely, basic features applicable to them all have been identified: There is in place a special-purpose vehicle SPV or Project Company whose only business is borrowing for a particular project to achieve the limited goals of construction and operation of the project. Project finance is normally used in financing new projects unlike existing projects, however, there could be financing loans for existing projects. Project finance is normally non-recourse to the sponsor and no guarantee is needed for the project debt. Lenders always look out for the cash flow that will be generated from the project for the recovery of the loan rather than the asset of the project. In terms of a default on repayment, the SPV becomes the main security available to the lender for the recovery of the loan due to the ownership right to resource, awarding of contracts and licences of the SPV.[5] From the above features, point (V) can be said to be the nub of this paper which is to state that in project finance, lenders only look out for the assets of the project for securitisation of the loan and to have full control over the asset which is being financed. The primary objective of security in project finance is to safeguard the debt which is usually the larger share of the financing structure but which doesnt yield higher returns if the project has an upside.[6] Security over the project is widely ranged and differs from project to project. A commentators view is that the lenders security is in four stages; Control over the cash flow of the project. The ability of the lender to step-in to project administration under direct agreements. Guaranteeing and assignment of SPVs assets and major agreements and contracts. Security over company shares. The Concept of Non-Recourse There are two basic types of recourse project financing: limited recourse project financing and nonrecourse project financing. Limited recourse gives the lenders some recourse to the sponsor in the form of the pre-completion guarantees or/and other assurances of some form of support for the project. Limited recourse project financing is typical for emerging market projects and projects posing significant risks. Nonrecourse project financing is an arrangement under which lenders do not have any direct recourse to the sponsors. Their security includes various assets of the project company (including the assets being financed) and relies on the operating cash flow generated by the project company. There is the possibility of a default on the payment of a term of a loan. Normally when it does happen, lenders fall back on the borrowers assets for the recovery of the advanced loan. Ideally, in project finance the loan is normally non-recourse to the sponsors; thus the loan is repaid only f rom the cash flow generated by the project with the sponsors providing no guarantees to the lenders. The concept of non-recourse project financing thus implies that the sponsors assets for the debt recovery is of no recourse to the project company, however, lenders might have recourse to the projects assets. Thus, lenders will look out for the credibility of sponsors in terms of security of the capital involved by recouping the debt as projected regardless of the completion of the project. This is opposed to traditional lender/borrower relationship like corporate financing whereby lenders normally secure the repayment of loan by demanding on some form of collateral or security which most often might not be necessarily the same as the value of the loan. This brings to the fore, the notion of project finance relying on the viability of a project rather than the credit value of the sponsor which in theory gives the project sponsor no direct legal obligations to reimburse the project debt and pay for interest. 2: ELEMENTS OF SECURITISATION IN PROJECT FINANCE The main aim of security is to safeguard the debt which most scholars believe its role in project finance is defensive and do not offer the lenders the right to actualise on the assets as they would in conventional secured finance. Lenders are mostly fascinated about the operators demonstrated aptitude in project finance since the repayment of the loan rely heavily on the achievement of the operator rather than the value of the project assets.[7] Lenders in most cases take aggressive security over assets they have financed just to ensure that they are able to sell off the asset in question on an execution of its security. This notwithstanding is not the ultimate goal for lenders in taking the security; instead, the aim of lenders to achieve their security goal is in two stances. Firstly, they look out for security with an eye on a complete security package that gears towards a defensive mechanism which aims at preventing other creditors taking security over the assets they have financed and also to avert other creditors who might try to rely on those assets. Secondly, the other stance for which lenders would want to take up security is for the sole aim of controlling the future of the project should a default occur so they can complete the project thereby operating it in order to generate the cash flow needed for the repayment of the loan. The lenders ability to achieve this aim is however dependant on the jurisdiction in whi ch the principal project assets are located. A table that illustrates the elements of a project finance security package is shown hereunder: Table1. Typical Elements of a Security Package[8] PROJECT ASSETS AND CASH FLOWS SPONSORS OTHER SOURCES Mortgage on project assets Pre completion guarantee Entitlement payments related to government concessions( for example the assignment of compensation due if concession is terminated early) Offtake agreements to ensure output demand (quantity and price) Project funds agreement; other financial support: subordinated loans in case of shortfall of project cash flows Letter of credit Supply agreements Construction and operation supports: arrange turnkey construction contract, supply key managers, arrange management contract Political risk insurance Assignment of receivables Financial Covenants Pledge of shares Escrow accounts to receive project revenues: onshore and offshore, local and foreign currency Assignment of insurance Payments 2.1 The Escrow Account The escrow account is said to be an account held in the name of the SPV or borrower by a bank with an escrow account agreement between the lender and borrower which gives rise to an immutable instructions from the borrower with a binding effect that all operational revenue or proceeds from the sale of assets of the project will be paid into this account.[9]Lenders tend to use the escrow account as a measure of control over the project revenues and also use the funds accrued for the settlement of the project expenses and also for the repayment of the loan. If a project cash flow is insufficient to settle the payment of the debt, lenders can also call for the setting up of an escrow account so that a trustee can withdraw from the escrow fund to service the debt.[10]A trustee can hold the trust on behalf of all creditors to avoid creating a separate trust for separate creditors and also introduce new creditors by means of a pre-agreed deed of accession.[11]However the escrow account when used to mitigate foreign currency risks helps to fulfil contractual responsibilities.[12] There are some key features of an escrow account that serve as security in project finance. Some of these features have been identified; It allows for the use of hard currency project revenue to pay for hard currency project debt. It is normally held offshore in a jurisdiction (country) where there is low foreign currency exchange convertibility and transfer risk. The escrow account forms part of the lenders security package as the cashflow is the principal concern of lenders. Normally the government of the host country requires approval for the creation and operation of the escrow mechanism.[13] 2.2 Assignment of Project Agreements and Other profits There is yet another measure that works to reinforce the security package which involves the assignment of rights under the key contracts of the project that serves as concretisation of (off-take contract, concession, construction contracts, etc.) security for the lender which is more prevalent under the operational stage of the project.[14]This process which could be called Direct Agreements have the aim of allowing the lender to take the place of the SPV should there be a default in the loan repayment by subjecting the borrowers privileges under the underwritten contract. Project receivables and agreements assignment has also been discoursed to enable creditors regulate project funds should the project encounter any challenge.[15] 3: HOW SECURITY MITIGATES LENDERS RISK 3.1 Lenders Risks Assessment and how they are mitigated by Securitisation Every discreet lender will resort to the method of project risk analysis when presented with a project finance proposal. This will enable the lender to come in terms with the scope, rationale and the objectives of the project at hand to be sure that they are flawless and feasible. In the same vain, the assessments of potential risks are measured on the same scale. Lenders have various reasons why they would want to advance funds for various projects. Some of these reasons include; profiting through attractive lending margins and other fees, the assumption of measured risk, to control credit agreements and the project as a whole in time of difficulties. This next section will discuss the assessment of a lenders risks and the elements of security which can be employed to mitigate them. Political Risks[16] These are inevitable and very much intrinsic in business which affects all stages of various projects right from the very beginning to the very end. This brings to the fore an evaluation difficulty with the utmost of it being expropriation by the government.[17]The tendency of existing political order collapsing, new taxations, exchange transfer restrictions, and nationalisation more often than not, put projects of both borrowers and lenders alike in jeopardy.[18]Not all, political risks such as war, civil unrest, default or failure of government agencies, changes in law and delays by governmental bodies to grant necessary approvals or licences for the project or components thereof can be a major concern to lenders. As if this is not enough, the ability of the host government to expropriate properties in return for relative compensation for the sole aim of public interest is a source of concern to the lender. This risk can hereby be mitigated by insurance against political risks and assurances against expropriation with a guarantee that proper compensation will be payable in that event. This risk can further be mitigated by a requirement of the host government to stand in as full guarantor of all the debt.[19]Lastly, it can be mitigated by participation of partners like the World Bank and multinational organizations (like MIGA, which has a special political insurance service) providing insurance in a traditional sense, in addition to issuing performance bonds that guarantee completion. Completion Risk The lender is faced with this risk when there is the difficulty of completing the project at hand. This goes a long way to affect the full operation capacity of the project as scheduled both on time frame and as budgeted.[20]This can be mitigated by the lenders looking to the sponsor for completion guarantees in order to ensure that they can make up for the cost involved. Environmental Risk Controversies that arise from environmental law as results of environmental pollution emanating from activities of project are inescapable to lenders. In mitigating this risk, there will be the need for the borrower to carry out social and environmental impact assessment plan. A laid down plan to monitor and manage this risks will equally be required. The need for lenders to abide by this management plan is crucial for the loan as non-compliance will be deemed as a default on the term of the loan. Force Majeure risk: Project finance has a high potential for vulnerabilities in that, force nature risks such as earthquakes, floods, strikes, civil disturbances and change of law can interrupt a projects operations and confound its cashflow. A particular force majeure can bring about a default depending on the sternness of the particular accident. It will therefore be prudent if an analysis of force majeure events that could hamper the projects progress be discussed. This can be mitigated by assigning the necessary insurances coverage for any eventuality as well as bring to bear the timely payment of insurances by the insurance companies. Market/Price Risk This type of risk involves fluctuation of price which has an adverse impact on the project revenue as well as the debt settlement. There is the need for the lender to put in place a price projection for long term contract for the sale of the projects product. The projects viability depends on this. To mitigate this risk, there should be in place long-term sales contracts for the product and a market guarantee agreement for the product should also be in place.[21]Mitigations like price hedging and derivatives could also be useful. These are but just a few of a lenders risk and how they are mitigated. 4: Conclusion The objective of the paper was to deliberate on the concept of project finance, its securitisation elements and how the various risks of lenders are mitigated. The paper employed analytical approach which gives it a safe landing on the grounds that; Securitisation is the back bone of project finance since lenders will not advance funds to project without repayment assurances. Security for the debt repayment can be in divergent means in as long as it is deemed fit for a particular project for the security of the debt at hand. Mitigation and securitisation are the only means by which a lender will assume risks. In conclusion, the more prevailing security measures in a particular project mitigate more risks and this is the bedrock on which lenders would lend to a project. BIBIOGRAPHY Primary Sources Judicial Decisions Re Bond Worth [1980] 1 Ch.228 at 248. Books Nevitt, P.K., and Fabozzi, F.J., Project Financing (7th Ed.)(London, UK: Euro money, 2000). Yescombe, E.R., Principles of Project Finance (London, UK: Academic Press, 2002) 5. Vinter, G., Project Finance: A Legal Guide (2nd Ed.) (London, UK: Sweet Maxwell, 1998). Ahmed, P.A., and Fang, X., Project Finance in Developing Countries: IFC Lessons of Experience No.7 (World Bank Publications, 1999). Clifford Chance (Law firm), Project Finance (London, England: IFR Publishing, 1994). Hoffman, S. L. The Law and Business of International Project Finance (The Hague, Netherlands: Kluwer Law International, 1998). Articles Esty, B.C., and Megginson, W.L., Creditor Rights, Enforcement, and Debt Ownership Structure: Evidence From the Global Syndicated Loan Market, Journal of Financial and Quantitative Analysis, Vol. 38, No. 1, (2003) Internet Sources Cadwalader, Wickersham Taft (law firm) Moving towards Hybrid Project Financing at https://www.cadwalader.com/assets/client_friend/110104HybridProjFin.pdf (last visited on 26/12/12). Islamic Development Bank, Risk Management guidelines for project finance, Group Risk Management Department,Muharram,1431/January 2010 (last visited on 20/12/12) https://www.ecosn.org/Portals/0/Workshops/PRM/11-Annex-XI-IDB_Project_Risk_Management Guidelines. Others Dow, S., Presentation for lecture 2 of International Project Finance Module at the CEPMLP, University of Dundee, (2012) Achonwa, J.,what are the elements of security in project finance and how does it limit the lenders exposure to project risks? (Unpublished LLM Dissertation Submitted to the CEPMLP, University of Dundee, 2009). Adesokan, A., Addressing Legal Issues Regarding Lender Protection and the Treatment of Security at the Completion Stage (Unpublished LLM Dissertation Submitted to the CEPMLP, University of Dundee, 2008). Omenuko, L., How can the Risks Associated with the Exploration and Production of Oil and Gas be Mitigated for the Purpose of Securing Finance (Unpublished LLM Dissertation Submitted to the CEPMLP, University of Dundee, 2007). Smith, V., Escrow Accounts in Project Financing Material on VLE, International Project Finance Folder, CEPMLP, University of Dundee (2012).