𝗝𝗩 𝘃𝘀. 𝗖𝗼𝗻𝘀𝗼𝗿𝘁𝗶𝘂𝗺 𝗶𝗻 𝗠𝗲𝗴𝗮 𝗣𝗿𝗼𝗷𝗲𝗰𝘁𝘀

 𝗝𝗩 𝘃𝘀. 𝗖𝗼𝗻𝘀𝗼𝗿𝘁𝗶𝘂𝗺 𝗶𝗻 𝗠𝗲𝗴𝗮 𝗣𝗿𝗼𝗷𝗲𝗰𝘁𝘀 – 𝗞𝗲𝘆 𝗗𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝗰𝗲𝘀

In mega projects, companies often collaborate to leverage expertise and resources. Two common structures are Joint Ventures (JVs) and Consortiums, but they operate differently. Here’s a breakdown: 🔹 Legal Structure 𝗝𝗩: A separate legal entity is formed, with partners sharing ownership, risks, and profits. 𝗖𝗼𝗻𝘀𝗼𝗿𝘁𝗶𝘂𝗺: No new entity is created; partners collaborate under an agreement while remaining independent. 🔹 Risk & Liability 𝗝𝗩: Partners have shared liability for the entire project. 𝗖𝗼𝗻𝘀𝗼𝗿𝘁𝗶𝘂𝗺: Each member is responsible only for their assigned scope, limiting liability. 🔹 Decision-Making & Governance 𝗝𝗩: Governed by a board or management structure with predefined decision-making rules. 𝗖𝗼𝗻𝘀𝗼𝗿𝘁𝗶𝘂𝗺: Each partner retains autonomy, coordinating through a lead partner or contractual arrangement. 🔹 Profit & Taxation 𝗝𝗩: Profits/losses are distributed as per ownership stakes and taxed accordingly. 𝗖𝗼𝗻𝘀𝗼𝗿𝘁𝗶𝘂𝗺: Each member is taxed separately based on their revenue share. 🔹 Common Use Cases 𝗝𝗩 Long-term projects requiring strong integration, such as infrastructure PPPs or energy ventures. 𝗖𝗼𝗻𝘀𝗼𝗿𝘁𝗶𝘂𝗺: Large-scale EPC projects where multiple specialized firms work together. Both models have pros and cons, and the choice depends on project complexity, risk appetite, and regulatory considerations