The JV parties agree to create a new entity by both contributing equity, and they then share in the revenues, expenses, and control of the enterprise. The venture can be for one specific project only, or a continuing business relationship such as the Sony Ericsson JV.
The name of each JV generally describes the purpose of the JV and not to a type of entity. Therefore, a JV may be a corporation, limited liability company, partnership or other legal structure, depending on a number of considerations such as tax and tort liability.
The first JV that the Business Plan Developer was involved with was Transfield when it created a JV called Sydney Harbour Tunnel with the Japanese tunnel building company, Kumagai, in order to build, own and operate the Sydney Harbour Tunnel. The Business Plan Developer acted as Agent Bank' for the Transfield syndicated debt facility with 9 'Participant Banks'.
Other JVs which the Business Plan Developer was involved with was between -
(i) two construction companies Australand and Multiplex to share project risk on residential developments at Darling Harbour.
(ii) Transfield and Obayashi which created the new company, Transurban, to build the Melbourne City Link toll-roads (initially termed the Southern and Western bypasses). Transurban is now a much larger company than Transfield.
Section 17(a) "Why YELP is a Business Plan and not solely a Research Programme" explains the economic merit of the YELP Holistic First Business Plan being a JV between Four Public Sector Equity Holders and 12 Private Sector Equity Holders.