A Review of Tools for Project Financial Assessments
Apstrakt
Governments not always have the funds to build transport and other infrastructure projects that are economically justified and environmentally and socially sound. Under certain circumstances, projects meeting such conditions can be implemented by involving private financing, through public-private partnerships (PPP), which is a means to get projects completed by leveraging scarce public resources. In a PPP project, the sources of revenue to the private partner (or concessionaire) may include (i) the users of the facility (e.g., road tolling), (ii) the government (e.g. through availability payments, capital grants and shadow tolls), and (iii) both users and government, which is usually called a hybrid concession. As a key step in considering attracting private investors for such projects, decision makers and practitioners need to assess their financial viability, an endeavor that can be greatly facilitated by relatively simple tools now available. This paper reviews and provides case st...udies of two existing tools for assessing the financial viability of: (i) hybrid road PPP projects, which involve both tolls and availability payments; and (ii) output- and performance-based road contracts (OPBRC), which involves payments by the government. The main output generated by both models include the project's internal rate of return, equity internal rate of return, annual debt service coverage ratio and the present value of the government's cash flow.
Ključne reči:
transport infrastructure / tolling / PPP / PBC / OPBRC / financial assessment / availability paymentsIzvor:
Transportation Research Procedia, 2020, 45, 54-61Izdavač:
- Elsevier B.V.
Kolekcije
Institucija/grupa
Mašinski fakultetTY - CONF AU - Queiroz, Cesar AU - Mladenović, G. PY - 2020 UR - https://machinery.mas.bg.ac.rs/handle/123456789/3457 AB - Governments not always have the funds to build transport and other infrastructure projects that are economically justified and environmentally and socially sound. Under certain circumstances, projects meeting such conditions can be implemented by involving private financing, through public-private partnerships (PPP), which is a means to get projects completed by leveraging scarce public resources. In a PPP project, the sources of revenue to the private partner (or concessionaire) may include (i) the users of the facility (e.g., road tolling), (ii) the government (e.g. through availability payments, capital grants and shadow tolls), and (iii) both users and government, which is usually called a hybrid concession. As a key step in considering attracting private investors for such projects, decision makers and practitioners need to assess their financial viability, an endeavor that can be greatly facilitated by relatively simple tools now available. This paper reviews and provides case studies of two existing tools for assessing the financial viability of: (i) hybrid road PPP projects, which involve both tolls and availability payments; and (ii) output- and performance-based road contracts (OPBRC), which involves payments by the government. The main output generated by both models include the project's internal rate of return, equity internal rate of return, annual debt service coverage ratio and the present value of the government's cash flow. PB - Elsevier B.V. C3 - Transportation Research Procedia T1 - A Review of Tools for Project Financial Assessments EP - 61 SP - 54 VL - 45 DO - 10.1016/j.trpro.2020.02.062 ER -
@conference{ author = "Queiroz, Cesar and Mladenović, G.", year = "2020", abstract = "Governments not always have the funds to build transport and other infrastructure projects that are economically justified and environmentally and socially sound. Under certain circumstances, projects meeting such conditions can be implemented by involving private financing, through public-private partnerships (PPP), which is a means to get projects completed by leveraging scarce public resources. In a PPP project, the sources of revenue to the private partner (or concessionaire) may include (i) the users of the facility (e.g., road tolling), (ii) the government (e.g. through availability payments, capital grants and shadow tolls), and (iii) both users and government, which is usually called a hybrid concession. As a key step in considering attracting private investors for such projects, decision makers and practitioners need to assess their financial viability, an endeavor that can be greatly facilitated by relatively simple tools now available. This paper reviews and provides case studies of two existing tools for assessing the financial viability of: (i) hybrid road PPP projects, which involve both tolls and availability payments; and (ii) output- and performance-based road contracts (OPBRC), which involves payments by the government. The main output generated by both models include the project's internal rate of return, equity internal rate of return, annual debt service coverage ratio and the present value of the government's cash flow.", publisher = "Elsevier B.V.", journal = "Transportation Research Procedia", title = "A Review of Tools for Project Financial Assessments", pages = "61-54", volume = "45", doi = "10.1016/j.trpro.2020.02.062" }
Queiroz, C.,& Mladenović, G.. (2020). A Review of Tools for Project Financial Assessments. in Transportation Research Procedia Elsevier B.V.., 45, 54-61. https://doi.org/10.1016/j.trpro.2020.02.062
Queiroz C, Mladenović G. A Review of Tools for Project Financial Assessments. in Transportation Research Procedia. 2020;45:54-61. doi:10.1016/j.trpro.2020.02.062 .
Queiroz, Cesar, Mladenović, G., "A Review of Tools for Project Financial Assessments" in Transportation Research Procedia, 45 (2020):54-61, https://doi.org/10.1016/j.trpro.2020.02.062 . .