Analyzing the Hybrid Financing Deep-Discount Project Bonds and Land Leases for a New Toll Road Financing Model
Publication: Journal of Infrastructure Systems
Volume 26, Issue 4
Abstract
Infrastructure has been discovered to be the backbone of an economy due to its influence on business and productivity. However, a significant investment funding gap was observed in infrastructural projects, particularly regarding toll roads. Therefore, this paper aims to provide a solution to fill this gap through the use of a hybrid financing model with deep discount project bonds and land leases. Both Latin hypercube and system dynamics simulation methods were used for analysis due to their ability to handle large and complex systems. Moreover, a case study was used to accurately depict the concept. The simulation results showed it is possible to overcome the risk of the ramp-up at first operation by avoiding land acquisition delays, minimizing construction cost, and optimizing toll road tariff and deep discount bond yield interest instead of creating a new entity. Furthermore, it is also possible for the government to improve its revenue by renting the land along the toll road in order to reduce the dependence on land acquisition costs from the state budget allocation.
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Data Availability Statement
Some or all data, models, or code that support the findings of this study are available from the corresponding author upon reasonable request.
Acknowledgments
Some parts of this study were based on the research work conducted during the doctoral research at University of Indonesia with support through the PITTA scheme. Especially, we are very thankful to Prof. Dr. Ir. Yusuf Latief, MT, as promoter and Prof. Dr.-Ing. habil. Andreas Wibowo, ST, MT, as co-promoter.
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Published In
Journal of Infrastructure Systems
Volume 26 • Issue 4 • December 2020
Copyright
© 2020 American Society of Civil Engineers.
History
Received: Mar 1, 2019
Accepted: Jun 9, 2020
Published online: Aug 6, 2020
Published in print: Dec 1, 2020
Discussion open until: Jan 6, 2021
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