Financial risk assessment and modelling of PPP based Indian highway infrastructure projects

Kumar, L. Vinoth; Jindal, Apurva; Velaga, Nagendra R.

doi:10.1016/j.tranpol.2017.03.010

Cited by 122 publications

(90 citation statements)

References 10 publications

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“…According to Kumar et al, (2018), assessing the identified risk is the following phase in the processes of managing risk after identification. Risk assessment is a process in which usable information is used in the determination of the frequency of occurrence as well as the degree of consequences in risk management (Olamiwale, 2014).…”

Section: Risk Assessment/analysismentioning

confidence: 99%

Evaluation of Risk Management Practice in the Nigeria Construction Industry

Ugwu

Osunsanmi

Aigbavboa

2019

mocs

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The construction industry is an essential contributor to a country’s economic growth. Unfortunately, the sector's contribution to the economy is hindered by numerous risk surrounding a construction project. Despite the harmful effect of construction risk, it cannot be eliminated but it can only be managed. Therefore, this study aimed at evaluating the practice adopted for managing construction risk within Nigeria construction industry. The quantitative research approach was adopted, and a descriptive study was selected because it gives an accurate account of the characteristics, for example, the behaviour, opinions, abilities, beliefs and knowledge of a situation or group. The questionnaire was sent out to 200 respondents out of which a total of 150 questionnaires were valid. All the valid questionnaires were analysed using SPSS v23 adopting the exploratory factor analysis method. The findings showed that just like developed countries the Nigeria construction industry adopt the best practice of risk management in construction projects. These practices include risk identification, assessment, response and control. The exploratory factor analysis revealed that under risk identification the practice adopted by the construction professionals is dived into information sourcing and history of the project. Concerning risk assessment, the practice comprises of event analysis and creating a picture of the project. The method adopted for risk response includes generating a risk reduction methodology, establishing risk management back up plan and shifting the risk to a third party. Whereas for risk control the practice consists of enhancing construction project quality and improving the program plan of the construction project. The study contributes to the better management of construction project risk in Nigeria.

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Section: Risk Assessment/analysismentioning

confidence: 99%

Evaluation of Risk Management Practice in the Nigeria Construction Industry

Ugwu

Osunsanmi

Aigbavboa

2019

mocs

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“…Spain has the most largescale PPP projects compared with the other members of the European Union [18]. Numerous PPP projects are implemented and operated successfully in India [19,20]. Portugal started a PPP wind power project and put the PPP contract out to tender to attract private capital in 2005 [21].…”

Section: Introductionmentioning

confidence: 99%

Policy solution and game analysis for addressing the challenge of developing public–private partnership energy project

Tang

Sun

et al. 2019

Environ. Res. Lett.

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Various developing countries have been promoting public-private partnership (PPP) infrastructure projects in recent years. Energy infrastructure project construction, which needs substantial capital investments, is a cornerstone of and supports economic development. A PPP-based energy infrastructure project is beneficial for alleviating developing countries' financial burden and for facilitating the diversified development of the energy market. Therefore, to increase government income and reduce infrastructure project costs, the PPP energy project construction model attracts considerable attention of various industries, especially in developing countries. For example, as gross domestic product growth decelerates and the government debt ratio rapidly increases, many Chinese provinces and cities face financial obstacles to economic development; therefore the Chinese government has issued a series of PPP-based energy policies. However, a number of risk factors associated with PPP projects, and conflicting interests between governments and private investors, have resulted in project failure. This study analyzes the development of PPP in China from the economic and industrial development perspective. It combines the latest PPP energy policies of China to solve problems that stem from the main risk factors involved in constructing and operating PPP energy projects. This research also provides game analysis for achieving maximum benefits as the government and the private investor have conflicting interests.

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“…A case study of the railway project in Tanzania was also presented. Kumar et al [11] applied a standard risk-analysis model of NPV-at-risk tool supported by Monte Carlo Simulation to the real-world PPP based highway infrastructure projects, which is able to identify which source of uncertainty has the most influence on the project's financial returns and what is the actual relationship between the critical influencing parameters and associated NPV. Wu et al [12] combined the 2-dimension linguistic information of fuzziness and randomness with the cloud model to put forward a risk assessment framework of PPP waste-to-energy incineration projects.…”

Section: Introductionmentioning

confidence: 99%

Optimizing Price of Credit Default Swaps for Dynamic Project System of Public-Private Partnership

Sun

2018

Discrete Dynamics in Nature and Society

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Most project operations management belongs to the type of public-private partnership (PPP), which is usually dynamic. This paper aims to propose a method for optimizing the price of credit default swaps (CDS) for the dynamic PPP system. This study investigates the credit risk measurement of PPP project financing and the pricing of risk mitigation instruments which are widely used in the case of immature markets in the early stage of China's PPP development. Based on the credit risk measurement theory of the corporate and debt ratings, this paper considers the differences in various credit enhancement methods in the equity-like debt agreement and determines the credit rating of the equity-like debt in PPP projects. Some optimization methods are also proposed to derive the probability of default, so as to determine the price of the credit risk mitigation instrument of CDS which is based on the equity-like debt.

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Financial risk assessment and modelling of PPP based Indian highway infrastructure projects

Cited by 122 publications

References 10 publications

Evaluation of Risk Management Practice in the Nigeria Construction Industry

Evaluation of Risk Management Practice in the Nigeria Construction Industry

Policy solution and game analysis for addressing the challenge of developing public–private partnership energy project

Optimizing Price of Credit Default Swaps for Dynamic Project System of Public-Private Partnership

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