A special case is Russia, which can't be considered developing as well, as developed. Taking into account that it is almost impossible for Russia to contribute hard currency, payment-in-kind can be the only possible way to participate. In fact, Western governments now show an increasing anxiety about an instable group of first-rate Russian space and nuclear engineers who are out of job and money and eager to work on any weapon for anybody who will pay. These engineers and scientists can be used in Space Solar Power Program, going directly from developed countries governments, in order to prevent “Russian brain drain” to the Third World countries.There are a lot of projects to create such funds and Space Solar Power Program can be a good allocation for that money. The abive mentioned scenario is an ideal case, when all the countries will join the project and contribute as much money as required.In reality we can expect, for instance, strong opposition from the side of oil companies and Arab nations which will be reluctant to stop oil usage. On the other hand there is an existing possibility that Arabs may wish to use some of their present wealth to “buy- in” to future energy production systems. International Funding A program such as SSPP can also be funded by some international bodies. There are two major debt possibilities: UN, through International Resources and Development Bank (IRDB). In this way it we can also partly cover a share of developing countries. International Monetary Fund Private Funding Private funding sources are not an object of serious studies at the first demo stages of the project. In future, money could come from : • Oil companies - in case they will face with threat to be out of resources and will look for possible alternative business. • Venture capital - in case of fast and profitable payback. • Advertising companies-as far as governments will allow them to use SSPP for advertising. • Shares sales • Commercial banks - if they will see that project is stable or guaranteed by governments. • Pension funds - also in case of stable and evidently safe project. 11.2.2 Financial Risk Analysis “Sometimes I only find where I should be by going somewhere I don't want to be” -- Buckminster Fuller This idea presented by Dr. Peter H. Diamandis during the ISU summer session 1992, gives a good indication about the nature of risk. With enormous investments required, markets which are underdeveloped, technical failures which are probable, and weak possibilities of return from investments expected, the space industry can be considered as risky. [Diamandis, 1992] Financial risk associated with a specific project can be defined in several ways. This type of risk can be assessed as the variation of possible returns emanating from the project considered. It is frequently measured by developing cash flows based upon pessimistic cost or revenue assumptions. The longer the time period involved in realizing the project, the less certain the investor is of a return. This is because the events and conditions influencing the return in the distant future are not foreseeable. To minimize the financial risk identified by potential investors, a sequence of actions has to be implemented at all levels of the project. The process of managing risks as a means of planning how best to survive setbacks is called Risk Management and can be identified through four basic steps: • Identify the risk • Evaluate the risk • Determine the best way of dealing with the risk
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