DEEP DIVE – FINANCE MATTERS:

The SPIFIS Foundation – A Global Project Engineering Solution:

GPE proposes the use of a Single Purpose Infrastructure Foundation In Switzerland (SPIFIS). The choice of Switzerland is to take advantage of the management flexibility afforded by the Swiss Law. Swiss Foundations can do both for-profit and non-profit work within the same organization. The specially crafted Constitution, Statutes, Bylaws and Contractual arrangements are described elsewhere on the GPE Website.

The SPIFIS Foundation is a Private Foundation acting as a quasi Public Entity. The SPIFIS Foundation does not have stockholders and is not subject to the tyranny of the markets. Therefore the SPIFIS can take the very long term view regarding all investments made into it or through it. It is also possible for the Foundation to receive Public Funds and or Guarantees as if it was a Public Entity.

The SPIFIS Foundation will securely manage a very large amount of Funds over the 20 years or more duration of the Project. The SPIFIS Foundation will work through a wholly owned Captive Insurance Company which in turn will manage and increase a complex portfolio of Funds in the Financial markets. (More details elsewhere on the GPE Website).

The SPIFIS Foundation will contract with Prime Contractors to perform the building activity of the project and / or manage the facility as required over decades or more. For very long-term projects, or projects with a high degree of technology research, the Prime Contractor will be paid on a cost-plus-negotiated-profit basis. In this manner, the Private enterprise group will be insulated from any Public Money Financial Support, and the price of Water or the Price of Electricity will not be affected by the Private enterprise Profits or Financial Markets tyranny on the quarterly reports. In other words, the Private Enterprise Stockholders will not directly benefit from Public Taxes.

The SPIFIS Foundation can interact freely with and involve, representatives of the local Community, the Political Establishment and the Government without any risk of a conflict of interest on the part of elected officials or government officials. Any risk of abuse will be prevented by the Compliance System established through GPE. This will ensure complete and immediate transparency while preserving Banking / Financial confidentiality. The SPIFIS will manage the maintenance, systems update and renewal in the same manner.

The SPIFIS Foundation will use a multidisciplinary approach to maximize the synergies and the benefits derived from the Holistic Management of the Eco-system including Humans, Nature and the Economy.


GPE Adopts A Short, Medium And Long Term Approach:

Financing infrastructures is a long term proposition of 30 years or more. The amortization period is also just as long. In the case of water and electricity the price is constrained for political reasons because access to water and electricity is considered a fundamental right of citizenship.

The amount of financing required is multiple $100 Billions or many $Trillions for each Country. This type of funding is beyond the reach of local Public Entities. Governments have already reached the maximum of their borrowing capacity. The Stock Market requires that Private Enterprise show a break-even in 3 years.

Unless Private Enterprise funding is guaranteed in some manner any work will proceed extremely slowly, which is the case today.

The Financial Markets alone have the capacity to easily fund the $Trillions required for such projects.

The GPE Solution: GPE is proposing to use a “Finance” SPIFIS Foundation. The “Finance” SPIFIS will fund the “Project” SPIFIS and will pay the Private Enterprise Prime Contractors, which do the construction work or provide services as required. The “Finance” SPIFIS will also set up a wholly-owned Captive Insurance Company. The Captive Insurance Company will acquire all the necessary financial licenses to trade in the financial market and to act as a quasi-Hedge Fund.


The “Finance” SPIFIS:

The “Finance” SPIFIS does not need to fund all the activities described in the water and electricity section described elsewhere on the GPE website. For instance the “Finance” SPIFIS does not need to fund the production of electricity, which will be left to the care of Private Enterprise.

The following activities will require funding and various form of financial support from the “Finance” SPIFIS:

  • Research
  • Transport of water and transport of electricity
  • Nuclear Power Plant decommissioning
  • Legacy Electric Utilities Reconversion

Notes On: Legacy Utilities Reconversion:

Legacy Utilities Reconversion requires some attention. Switching from a legacy, carbon-based energy and a centralized, vertically-integrated business model, over to a renewable distributed-market based business model, entails substantial financial and business risks. The “Finance” SPIFIS will provide the necessary guarantees to Global Re-Insurance Companies, which in turn will provide the financial backing to facilitate the smooth change over.

If you require further information, please contact Global Project Engineering.


Global Project Engineering
1 Carrefour de Rive
1207 Geneva – Switzerland
Tel : + 41 22 735 7900
Email: nesterenko@globalprojectengineering.com