Single Treatment of PPP Road Project Options
Publication: Journal of Construction Engineering and Management
Volume 145, Issue 2
Abstract
Recent publications have shown the role that options play in addressing the uncertainty, risk, and fairness in public–private partnership (PPP or P3) agreements in toll road projects. Typically, the literature uses financial market options techniques and applies these by analogy. Each option is presented and analyzed in standalone papers. In contrast, this paper presents an original single unifying approach for analyzing all PPP toll road options, an approach based on discounted probabilistic cash flows. The approach is a straightforward extension of conventional engineering viability analysis of projects, and does not rely on the financial market options literature. It offers a ready way to evaluate multiple options, requires minimal financial and mathematical knowledge, and hence can be readily implemented by practitioners. The paper also serves as a state-of-the-art literature summary as related to options in PPP toll road projects. The paper will be of interest to anyone involved in PPP toll road projects.
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Data Availability Statement
Data generated or analyzed during the study are available from the corresponding author by request. Information about the Journal’s data-sharing policy can be found here: http://ascelibrary.org/doi/10.1061/(ASCE)CO.1943-7862.0001263.
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Information & Authors
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Published In
Journal of Construction Engineering and Management
Volume 145 • Issue 2 • February 2019
Copyright
©2018 American Society of Civil Engineers.
History
Received: Feb 23, 2018
Accepted: Jul 12, 2018
Published online: Nov 16, 2018
Published in print: Feb 1, 2019
Discussion open until: Apr 16, 2019
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