Evaluation of Availability and Service Performance Based Payment Mechanisms for PPP Road Traffic Infrastructure Projects

Recent developments in the PPP infrastructure market show a more critical rating of the traffic demand risk and consequently an apparent preference for projects featuring an availability and service performance based payment mechanism. This paper illustrates and explains the general characteristics and interconnection of these two payment elements. Based on an empirical analysis, it shows how these payment elements are implemented in six recent projects in Europe and North America by presenting the concepts chosen and the range of parameter specifications. Using these results and the experience of implementing PPP infrastructure projects as the basis, the two payment elements are evaluated with focus on the concessionaire’s perspective. The resulting recommendations are, however, addressed to both the authorities and to private partners and include general principles for setting up a payment mechanism, but also some concrete advice on the choice of concept and parameter specifications. This may contribute to a better understanding and the standardization of payment mechanisms and is a step towards increasing the value for money of future PPP infrastructure projects featuring availability and service performance based payment elements.


  • English

Media Info

  • Media Type: DVD
  • Features: References; Tables;
  • Pagination: 15p
  • Monograph Title: TRB 89th Annual Meeting Compendium of Papers DVD

Subject/Index Terms

Filing Info

  • Accession Number: 01158086
  • Record Type: Publication
  • Report/Paper Numbers: 10-2114
  • Files: TRIS, TRB
  • Created Date: Jan 25 2010 10:58AM