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<p>[quote user="CMStPnP"]</p> <div class="quote-header"> </div> <blockquote class="quote"> <div class="quote-user">Sam1</div> <div class="quote-content">Ridership, revenue, and cost estimates can be validated by an independent auditor or consultant.   Amongst other things they would test assumptions and estimates against acceptable benchmarks; look for constistency in formula applications; and assess the robustness of the market analyses.  They would also test the finance plan for reasonableness, compliance with accounting and financial standards, etc.   Project promoters tend to focus on the best case scenarios, i.e. they see their project through rose colored glasses.  An independent auditor or consultant would draw attention to worse case and intermediate case scenarios.  He would look for and validate (attest) the exist strategies.</div> </blockquote> <div class="quote-footer"> </div> <p> </p> <p>Now um.........when has a privately run and owned company thats not traded on any U.S. Stock exchange done any of the above in the past?    Do you have an example? [/quote]</p> <p>Ownership has nothing to do with prudence. </p> <p>JCR is a stock company. It appears to be a supporter of Texas Central Railway (TCR).</p> <p>TCR has not revealed its financing plans, other than to say that it will not take public monies.  That does not mean that it will not be floating debt in the public markets. Or taking a cue from its Japanese sponsor and selling shares in the market.  That is exactly what JCR, as well as several other privatized Japanese railway companies have done.</p> <p>Even if the company is privately held, it will have to obtain financing.  It  probably will do so from large investors, e.g. KKR, TPG, Goldman Sachs, Japanese Central Bank, etc.  They are not going to put up the money for the project without some independent assurance that it is viable.</p> <p>If TCR fails it probably will be dumped on the Texas taxpayers.  The state is not likely to allow a failed railway between Dallas and Houston to go to seed.  Accordingly, the people, represented by the regulators, have a vested interest in making sure that the project is viable.  And the regulators will be using independent evaluators to assess the viability of the project.</p> <p>Private investors built a merchant power plant in Midlothian, Texas. The developers got their money from a consortium of investment bankers.  They insisted that the viability of the plant be evaluated by an independent assessor.  It was done by one of the big four accounting firms.  </p>
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