Assessing the Financial Feasibility of Availability Payment PPP Projects

Over the last couple of decades there has been an increased contribution of the private sector to finance infrastructure projects. However, in view of the current global financial crisis, it has become more difficult for governments, particularly in transition and developing economies, to attract private financing for infrastructure, which may affect negatively the capacity of many countries to expand, and even keep up their infrastructure. While this is an observed short-term phenomenon, it is still not clear what will be the medium to long term effect of the crisis. It may well be that governments may be willing to increase their financial support to infrastructure projects so as to make them more attractive to potential private investors. This paper focuses on availability payment (AP), which has been increasingly used to undertake critical infrastructure projects in both developing and developed countries. It presents the development of a user-friendly tool for financial assessments of availability payment PPP projects. The model is suitable for preliminary assessment and screening of potential PPP projects. The applicability of the tool is demonstrated through a numerical example of a potential road PPP project. The model can also be applied to any other mode of transport or infrastructure. The model can be used to carry out sensitivity analyses. The user can change the value of an input parameter (e.g., construction cost) and obtain the resulting impact, for example, on the project financial internal rate of return.

• Record URL:
  https://doi.org/10.1061/9780784413586.058
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/isbn/9780784413586
• Supplemental Notes:
  • © 2014 American Society of Civil Engineers.
• Corporate Authors:

  American Society of Civil Engineers

  1801 Alexander Bell Drive
  Reston, VA  United States  20191-4400
• Authors:
  • Mladenovic, Goran
  • Queiroz, Cesar
• Conference:
  • Second Transportation & Development Congress 2014
  • Location: Orlando Florida, United States
  • Date: 2014-6-8 to 2014-6-11
• Publication Date: 2014-5

Language

• English

Media Info

• Media Type: Digital/other
• Features: Figures; References; Tables;
• Pagination: pp 602-611
• Monograph Title: T&DI Congress 2014: Planes, Trains, and Automobiles

Subject/Index Terms

• TRT Terms: Construction projects; Feasibility analysis; Financial analysis; Financing; Mathematical models; Payment; Public private partnerships
• Subject Areas: Construction; Economics; Finance; Highways; I10: Economics and Administration; I21: Planning of Transport Infrastructure;

Filing Info

• Accession Number: 01528820
• Record Type: Publication
• ISBN: 9780784413586
• Files: TRIS, ASCE
• Created Date: Jun 26 2014 9:19AM