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Role of Global Organizations and consortiums in public and private financial institutions

Identify a non-North American project in the global arena that was funded by a consortium of public and private financial institutions.

Discuss the nature of the consortium and evaluate the role of each player.

Assess the impact of the consortium's involvement on the project.

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In October of 2010 an international consortium led by the Mitsubishi Corporation (MC) agreed to purchase United Utilities Australia Pty Limited and its Australian related entities (UUA) from United Utilities PLC (United Utilities) (Trility Pty Ltd, 2011). The consortium was composed of the Mitsubishi Corporation, Innovation Network Corporation of Japan (INCJ), JGC Corporation (JGC) and Manila Water Company, Inc. (MWC). The transaction was worth about 225 million Australian Dollars, about 176 million of which was in cash and 49 million in net debt. The participation of INCJ made this project the first water project in which a Japanese public private consortium outside of Japan was involved (Mitsubishi Corporation, 2010).

United Utilities Australia Pty Limited

UUA, which started in 1991, had always been a strong player in the Australian water industry. The company had in fact been responsible for delivering an assortment of water and wastewater services to more than three million people via numerous projects throughout Australia. UUA's competencies encompassed the entire life cycle of water and wastewater treatment projects. This included project finance, design, construction upgrades and renovations, as well as, operation and maintenance, asset management, utility services, laboratory testing, and billing and customer services. UUA was also able to access technologies relating to desalination, industrial wastewater treatment and reclamation (Mitsubishi Corporation, 2010).

Innovation Network Corporation of Japan

INCJ, a public-private partnership, was established in July 2009. The company's business is to provide financial, technological and management support for start-up businesses. INCJ was especially well ...

Solution Summary

This solution discusses the role of global organizations and consortiums in public and private financial institutions.