Case Tianjin Plastics: Project Financing 1. Describe and quantify the different types of risk related to this project: construction risk, operating risk, credit risk or political risk. - Which party involved is facing which risk and to what extent? 2. What is the expected return of the project for Maple Energy? - List and quantify (if possible) the risks for this return. - What is the impact of financing choices on the expected return? - Which financing choice should Pat Johnson make? 3. Describe the similarities and differences with DBFMO projects in Dutch infrastructure as introduced in the guest lecture on 22 September. You may also search for more additional information on DBFMO projects in Dutch infrastructure. Consider the following subquestions when answering question 1 and 2. a What are Maple Energys potential sources of earnings from the Tianjin Plastics project? b. How critical are the following items to Maple Energy? (1) exchange rate at the time of remittance and (2) timing of the remittance. c. How can the Chinese government control or influence the ROI for Maple? d. What are the advantages and disadvantages of the back-to-back swap deal with Wintel? e. Should Maple consider financing the entire project in Rmb? Why or why not?