Pipeline projects for the oil and gas industry
Dear colleagues and friends!
We would like to inform that TNN LTD integrates one of its divisions in Ukraine into the production of pipes, which will allow to produce more than 3 thousand sizes of seamless and welding pipes from more than 50 different grades of steel according to international standards. (more…)
Construction and demolition waste production in the EU
In 2012, total amount of the EU construction waste in EU reached 821 160 000 tones and, as a result, construction and demolition sector in EU produced 32% of EU waste. It should be also noted that the number of C&D wastes increases in the EU member states and it is expected that in 2020 the amount of waste generated by the construction sector will reach more than 500 million tonnes1. Therefore, the market related to the construction and demolition waste is seen as the most attractive in comparison with markets aimed at collection or recovery of other types of waste2.
The majority of C&D waste is produced in France, Germany, Netherland and United Kingdom however the group of important producers represent also Italy, Spain and Belgium. In 2011, revenues of recycling of construction and demolition waste in Europe reached $61 billion3.
95% of the EU construction waste consists of mineral and solidified materials (excluding combustion wastes, contaminated soils and polluted dredging spoils). This waste stream includes mainly concrete and masonry which represented above 60% of construction and demolition waste (2011). Another big proportion is composed of asphalt (up to 26%). Other materials (e.g. gypsum) comprise only a small part of the C&DW total weight4.
Future trends and innovative sorting and recycling technologies
European market of C&D waste is characterized by three important trends which can lead to rapid development of new solutions for C&D waste management. First of all, increase of prices for waste disposal is observed and this process may stimulate development of companies interested in C&DW management. Moreover, it is predicted that EU countries will move towards unification of regulations aimed at C&D management. Finally, the unification process will also change the tasks of EU local governments and it is expected that they will be more responsible for local waste management. As a result, the governments will have to reduce the volume of landfill waste and achieve appropriate levels of preparation of re-use, recovery and recycling waste5. These factors may create new possibilities for development and commercialization of innovative sorting and recycling technologies, among which the HISER products and innovations can be found.
Community Investment Program
The Community Investment Program (CIP) supports a broad spectrum of programs and services by providing grant funding and agreements to community groups and non-profit organizations responsible for:
• Delivering various recreational, cultural and social programs and services.
• Developing and operating community facilities.
• Organizing community events. (more…)
Investment of Bond Proceeds
When governments issue bonds they deposit the bond proceeds (and occasionally other monies) in various funds, which may include a construction fund, debt service fund, capitalized interest fund, debt service reserve, or in the case of a refunding, an escrow fund. In some cases these funds may be held by a third party trustee. Monies allocated to these funds usually are invested until needed. The investment strategy for each fund will depend, in part, on federal or state statutes and regulations governing the types of instruments permitted to be used for the investments, the arbitrage yield permitted for the fund, requirements from rating agencies and/or credit enhancement providers, and the anticipated drawdown of bond proceeds. Additionally, each of these funds will have different investment objectives, so there are many factors that must be considered by the government when selecting the investment instrument. Governments need to be mindful that cash flow analyses are critical components of the process and are useful in reducing the possibility of negative arbitrage that may occur. Furthermore, the presence or lack of arbitrage could affect the entire structure and sizing of the debt financing.
Due to the Dodd Frank Act and the Securities and Exchange Commissions (SEC) Municipal Advisor Rule (the Rule), brokers may be considered municipal advisors if they provide advice on investments of bond proceeds to governments. Under the Rule, municipal advisors have a fiduciary duty to their government clients, and, if brokers wish to avoid becoming fiduciaries, they will be unable to provide advice to government clients unless they meet one of the exemptions to the Rule, which are described in this section. Broker-dealers will be deemed to have provided advice when they make a recommendation to their government clients to buy a particular security. However, brokers may provide certain information without it being considered advice.
For example, the SEC has said that brokers may provide information about their firms currently available investments (e.g., the terms, maturities, and interest rates at which the firm offers these investments) or price quotes for investments available for purchase or sale in the market that meet criteria specified by a municipal entity. This is considered general information and therefore is not considered advice. Also, a broker may respond to requests for offers for investments of bond proceeds and escrows as long as the broker is just quoting a price and not otherwise commenting on the advisability of those investments.
There are also two exemptions that will allow a broker to provide advice without becoming a municipal advisor with a fiduciary duty. The first is the RFP exemption. Under this exemption an issuer could send out an RFP for investments to at least 3 reasonably competitive providers, asking for recommendations on how it should invest bond proceeds for a particular period of time. The broker could respond to that RFP by providing advice on which investments are good candidates for the issuer. A form of RFP document that would satisfy this exemption, along with model language for the other exemptions in the Rule, is available in the GFOA MA Rule Alert, which is linked to in the reference section of this document. A definition of the term Municipal Advisor can also be found in the Alert.
There is also an exemption if the issuer has an independent registered municipal advisor (IRMA) that will provide it with advice on investments. It requires a written representation on the part of the issuer and a corresponding disclosure on the part of the broker to both the issuer and the municipal advisor. A form of an issuer IRMA representation and a form of broker required disclosure is also available in the GFOA MA Rule Alert. Note: A government may not use an SEC-registered investment adviser as its IRMA, because SEC-registered investment advisers are exempt from the definition of municipal advisor. Additional resources to help governments become familiar with the Rule are included in the References section of this Best Practice.
There is also an exemption if the issuer has an independent registered municipal advisor (IRMA) that will provide it with advice on investments. It requires a written representation on the part of the issuer and a corresponding disclosure on the part of the broker to both the issuer and the municipal advisor. A form of an issuer IRMA representation and a form of broker required disclosure is also available in the GFOA MA Rule Alert. Note: A government may not use an SEC-registered investment adviser as its IRMA, because SEC-registered investment advisers are exempt from the definition of municipal advisor. Additional resources to help governments become familiar with the Rule are included in the References section of this Best Practice.