Environmental Engineering Reference
In-Depth Information
commits to the OECD Guidelines for Multinational Enterprises, which were
updated in 2011.
171
An investor would be considered a multinational enterprise
as it is a possible TNC and has a great variety of shareholders. This guideline sets
certain standards concerning the behavior of multinational enterprises operating or
interacting with different states.
1.4 Setup of PPPs
International PPPs are classified according to features of performance like Build
Operate Transfer (BOT), Build Operate Own (BOO), Build Operate Own Transfer
(BOOT), Design Build Finance Operate (DBFO) and Design Build Operate Trans-
fer (DBOT).
172
PPPs can be broken down into two basic categories of cooperation,
namely contractual (solely based on a contractual partnership between the public
and private sector) and institutional (foundation of a new entity to facilitate the
cooperation between both sectors) PPPs, whereby the latter can be again divided
into a cooperation model and a joint venture.
173
The entity at the core of the
institutional PPP is often called a special purpose vehicle (SPV).
174
Its main task
is to supply operating material, also known as feedstock contracts (e.g. water, oil),
operate, maintain and sell the product.
175
1.4.1 Cooperation Model and Joint Venture
The main difference between the cooperation model and the joint venture is in the
setup of the SPV. The state must hold 51 % of the SPV
s shares within the
cooperation model.
176
Within a joint venture, this requirement does not exist
(mostly 51 to 49 % in favor of the private sector).
177
The advantage of a joint
'
171
OECD (
2011
).
172
Yescombe (
2007
), 7-8; Bertelsmann Stiftung et al. (
2011
), 18; cf. Liu and Cheah (
2009
),
331 (331); Palmer (
2009
), 13.
173
European Commission (
2004b
), 8-9 and 18; cf. Seidel/Mertens in Dauses (
2010
), H. IV.
¨
ffentliches Auftragswesen, para 206; cf. Emmerich-Fritsche (
2010
), slides 11 and 16.
174
Corbacho and Schwartz (
2008
), 85 (86); Yescombe (
2007
), 108-109; Concerning SPV, in:
Nickel and Kopf (
2004
); Kistner and Price (
1999
), 5; Dorner (
1994
), 75 (83); cf. HyunChan
et al. (
1997
), 93 (93).
175
Schoeltzke and Claus (
2007
), 133 (136) and (139).
176
St
ocker (
2010
), 101; At least 50 %, in: Kn¨ tel in Siebel et al. (
2008
), para 1282.
177
Ehricke (
2007
), 67 (71); Allen (
2001
), 12; Yescombe (
2007
), 321.
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