Replacing failed private water contracts

Failed private water concessions have been terminated and replaced with public sector operations in many countries. The paper reviews the negotiating processes involved in these terminations.

On a parallel time-domain method for the nonlinear Black-Scholes equation

A parallel time-domain algorithm is described for the time-dependent nonlinear Black-Scholes equation, which may be used to build financial analysis tools to help traders making rapid and systematic evaluation of buy/sell contracts. The algorithm is particularly suitable for problems that do not require fine details at each intermediate time step, and hence the method applies well for the present problem.

Numerical solutions of certain nonlinear models in European options on a distributed computing environment

Financial modelling in the area of option pricing involves the understanding of the correlations between asset and movements of buy/sell in order to reduce risk in investment. Such activities depend on financial analysis tools being available to the trader with which he can make rapid and systematic evaluation of buy/sell contracts. In turn, analysis tools rely on fast numerical algorithms for the solution of financial mathematical models. There are many different financial activities apart from shares buy/sell activities. The main aim of this chapter is to discuss a distributed algorithm for the numerical solution of a European option. Both linear and non-linear cases are considered. The algorithm is based on the concept of the Laplace transform and its numerical inverse. The scalability of the algorithm is examined. Numerical tests are used to demonstrate the effectiveness of the algorithm for financial analysis. Time dependent functions for volatility and interest rates are also discussed. Applications of the algorithm to non-linear Black-Scholes equation where the volatility and the interest rate are functions of the option value are included. Some qualitative results of the convergence behaviour of the algorithm is examined. This chapter also examines the various computational issues of the Laplace transformation method in terms of distributed computing. The idea of using a two-level temporal mesh in order to achieve distributed computation along the temporal axis is introduced. Finally, the chapter ends with some conclusions.

Penalties on car rental agreements

Examines the Cambridge County Court ruling in Volkswagen Financial Services (UK) Ltd v Ramage on whether a clause in a car hire contract which allowed the finance company, upon repudiation of the contract after the hirer fell into arrears, to claim compensation equivalent to the lost future rental payments was unenforceable as a penalty clause, rather than being a reasonable pre-estimate of actual loss. Refers to case law including the Court of Appeal ruling in Anglo Auto Finance Co v James in considering the differing losses which would occur during the course of the hire term according to the natural depreciation of the value of the car. Notes the reasoning of the Court on: (1) contracts of hire compared with hire purchase agreements; (2) the comparative position of the parties and the freedom to contract elsewhere; and (3) the reasonable prediction of future losses.

Pre-nups: precedents in need of reform?

Traces the development of the law relating to the enforceability of pre-nuptial agreements, given the potential conflict between such an agreement and the jurisdiction of the court to determine financial provision on divorce. Sets out the 16 point checklist laid down by K v K (Ancillary Relief: Prenuptial Agreement) against which the enforceability of an agreement should be judged. Comments on the significance given to the pre-nuptial agreement in ancillary relief proceedings in Crossley (Susan) v Crossley (Stuart), where the parties were required to show why the agreement should, or should not, determine the outcome of the proceedings.

Profitability and the poor: corporate strategies, innovation and sustainability

Based on empirical evidence, the article looks at the implications of private sector participation (PSP) for the delivery of water supply and sanitation to the urban and peri-urban poor in developing countries, with particular reference to Africa and Latin America. More precisely, the article addresses the impact produced by multinational companies’ (MNCs) strategies, in light of the pursuit of profitability, on the extension of connections to the pipeline network. It does so by questioning the assumptions that greater private sector efficiency and innovation, together with contract design, will enable the sustainable extension of service coverage to low income dwellers. The strategies of the major water MNCs are considered both in relation to the global expansion of their operations and the adjustment of local strategies to commercial considerations. The latter might result in identifying proWtable markets, modifying contractual provisions, attempting to reduce costs and increase income, reducing risks and exiting from non-performing contracts. The evidence reviewed allows for re-assessing the relative roles of the public and private sectors in extending and delivering water services to the poor. First, the most far reaching innovative approaches to extending connections are more likely to come from communities, public authorities and political activity than from MNCs. Secondly, whenever MNCs are liable to exit from non-profitable contracts, the public sector has no other option than to deal with external risks aVecting continuity of provision. Finally, market limitations affecting MNCs’ ability to serve marginal populations and access cheap capital do not apply to well-organised, politically led public sector undertakings