CHALLENGES FACING INCLUSION OF SUSTAINABILITY IN SCHOOLS PPP PROJECTS Coursework

CHALLENGES FACING INCLUSION OF SUSTAINABILITY IN SCHOOLS PPP PROJECTS - Coursework Example Generally, the partnerships can range from dealing with climate change, infrastructure & social projects, health, corporate social responsibility, disaster relief/humanitarian aid, and environmental protection1. Thus the common theme that emerges regarding public-private partnership (PPP) projects are government or private ventures that are primarily operated and funded through a partnership between the government and private sector companies. How can these projects incorporate the sustainability criteria’s and to look at this we need to understand the ethos and concept of sustainability in its entirety. The term â€Å"sustainability† is widely used to refer to the capacity or ability of a system/ project to sustain its operations, benefits and services in the long term without compromising the needs of future generations. However, many different definitions have been advanced by various authors and researchers. While many authors have sought to define sustainability in relation to the capacity and ability of a system/ project to sustain itself or endure its operations, benefits and services during its projected life, others have defined it in relation to policy making. For example, in their definitions of sustainability, Barton (2000) and Du Plessis (2000), particularly focuses on the interaction of the economic, environmental and social aspects to achieve sustainable systems or projects. The Brundtland Commission of the United Nations, in its 1987 report titled â€Å"Our Common Future†, defines sustainability as the ability of a system to meet the needs of the present without compromising the capacity of the future generations to meet their own needs and goals2 (United Nations, 1987). Many experts believe this definition meets most of the diverse aspects of sustainability in its applications (Adams, 2002, Dale,

Chapter 21 Question 3 Essay Example | Topics and Well Written Essays - 1250 words

Chapter 21 Question 3 - Essay Example Because of this reason the cost of capital starts first to decline to a point where it achieved an optimal mix of debt and equity. If a firm uses too much debt financing, its overall risk profile start to increase. With more debt, the cash flows of the firm started to get strained because of the high proportion of them going for debt servicing. This reduces the free cash flow available to the firm which is one of the essential indicators of the value. It is because of this reason that the required rate of return on equity capital of the firm starts to rise thus increasing the overall cost of capital of the firm. It is also important to note that with more financing availed; shareholders tend to view the company with more skepticism as high amounts of debts indicate high risk because it may be perceived that the company’s operations may not have the capability to generate cash. Due to this perception, investors, who may be willing to invest into stock of the firm, start demanding high rate of return on equity capital. This, therefore, increases the total cost of