Impact of Political Risk on the Efficiency of Public-Private Partnerships

This paper examines the impact of political risk on the delivery of surface transportation infrastructure projects using a public-private partnership (P3) approach. The goal is to assess the probability of completion of P3 projects and what role political risk plays. To understand how political risks impact P3 projects at each stage of project delivery, this paper first develops a data structure illustrating stages of P3 project delivery. Data points are collected from multiple sources, including the Federal Highway Administration, state transportation agencies and private sector websites, Public Works Financing Database, and journalistic accounts. Using the developed database, the paper analyzes the probability of a project making it to the opening of the project to the public and the average time it takes for this. The empirical findings are then used to draw implications on how political risk affects the delivery of P3 projects. The data can be useful to practitioners and academics to properly calibrate the risks premium in their analysis.

• Supplemental Notes:
  • This paper was sponsored by TRB committee ABE10 Standing Committee on Revenue and Finance.
• Corporate Authors:

  Transportation Research Board

  500 Fifth Street, NW
  Washington, DC  United States  20001
• Authors:
  • Bolanos, Lisardo
  • McCarthy, Lauren
  • Kweun, Jeong Yun
  • Gifford, Jonathan
• Conference:
  • Transportation Research Board 96th Annual Meeting
  • Location: Washington DC, United States
  • Date: 2017-1-8 to 2017-1-12
• Date: 2017

Language

• English

Media Info

• Media Type: Digital/other
• Features: References; Tables;
• Pagination: 17p
• Monograph Title: TRB 96th Annual Meeting Compendium of Papers

Subject/Index Terms

• TRT Terms: Data collection; Political factors; Project delivery; Public private partnerships; Public works departments; Risk; State departments of transportation
• Identifier Terms: U.S. Federal Highway Administration
• Subject Areas: Administration and Management; Highways; Policy;

Filing Info

• Accession Number: 01626094
• Record Type: Publication
• Report/Paper Numbers: 17-05236
• Files: TRIS, TRB, ATRI
• Created Date: Feb 15 2017 5:03PM