Case ID: 0053
Solution ID: 13720
Words: 929
Price $ 45

Hopewell Holdings Limited

Case Analysis

Since, the Thai government was not in favour of increasing the fares and also the project was not being built based on the proposed timeline, Hopewell holding limited, as per the agreement, could ask for renewal and increase in concession period. The current concession period was of 30 years with 8 years construction period if the Thai government allows for increase in concession period, then Sir Gordon Wu could complete the project at a profit certainly as it would provide his company more time to earn revenues from the BERT project.

Excel Calculations

Questions Covered

1. Could Sir Gordon Wu take steps to complete BERTS at a profit? Which steps?

2. Even if the project was ultimately successful, did the near-debacle with BERTS indicate that large BOT projects in developing countries were simply too risky for firms like HHL?

3. It appears that Sir Gordon Wu intends to continue HHL’s infrastructure development business. Is this the right decision for HHL’s shareholders?
4. Can HHL take steps to minimize the risks associated with future infrastructure development projects? Alternately, would an entirely new corporate strategy — perhaps one that concentrates on its property development business — be better for shareholders?