Highway Project Value of Money Assessment under PPP Mode and Its Application

Abstract

The application of Public-Private Partnership (PPP) mode in transportation infrastructure construction has achieved more progress worldwide; now this mode has been adopted in highway projects of China from 2015. In the application of PPP mode, there are three main facts in China, which include whether the government is responsible for land acquisition and resettlement (LAR), the discount rate changes, and the replacement of business tax by value-added tax (VAT) in 2016. So this paper discusses Value for Money (VFM) quantitative assessment of highway projects under PPP mode in China, which considers currently three actual issues in China. A case study of Heda freeway in China has shown that (1) the government’s responsibility for LAR compensation may attract social capital investor and reduce the risk of social instability, (2) a reasonable range of a low discount rate can greatly reduce government expenditure, and (3) the replacement of business tax by VAT will increase the highway project company’s burden. The research results will be helpful for value of money assessment of highway projects under PPP mode in China and may offer the reference for other countries’ highway projects under PPP mode.

A Qualitative Analysis of Public Private Partnership (PPP) Project Contracts in the Roads Sector. A Contextual Elucidation of Uganda National Roads Authority (UNRA)

“…In terms of types of PPP project contacts to be adopted UNRA in the roads sector in Uganda, the findings revealed that a number of respondents interviewed disagreed with the statement that UNRA intends to adopt Public Finance Initiative PPP Project contact in the roads sector. Therefore, this finding of the study does not reflect the reviews of scholars such as Mehmet & Cuma (2018), Hu & Han (2018) and Kamau (2016) who contend that a Public Finance Initiative (PFI) is a type of PPP project contract where the public entity enters into a contractual arrangement with the private sector entity so that the private entity is authorized to provide services to the public through designing, building, financing and operation of a road facility.…”

“…al., (2014), there are various PPP Project contract types used in the roads sector. The Private Finance Initiative (PFI) PPP project contract was first used by the UK government when it passed a legislation to use it in the construction of a number of highway infrastructure projects (Hu & Han, 2018). Mehmet and Cuma (2018) contend that a PFI is a type of PPP Project contract where the public entity enters into a contractual arrangement with the private sector entity so that the private entity is authorized to provide services to the public through designing, building, financing and operation of a road facility.…”

“…Mehmet and Cuma (2018) contend that a PFI is a type of PPP Project contract where the public entity enters into a contractual arrangement with the private sector entity so that the private entity is authorized to provide services to the public through designing, building, financing and operation of a road facility. The private entity developer is therefore paid by the public entity for the work done to agreed standards in terms of the delivery of services through road facility maintenance (Hu & Han, 2018). Kamau (2016) insists that nowadays, PPP project contracts to be adopted in constructing and maintaining roads should be hinged on the PPP Project contract of PFI and at the same time on the existing concessions in place (Kamau, 2016).…”

Risk Assessment of PPP Model Based on Fault Tree Model for Urban Underground Utility Tunnel

“…However, the PPP mode promotion intensity and the market acceptance degree of the utility tunnel are different due to different regions, which reflects the integration of different regions. The ability to use the PPP mode of the pipe gallery is somewhat helpless [42,43,44].…”

Constraints to incorporate competition in Public-Private Partnerships (PPP) in Malaysia

“…There have been rapid increases over recent years in the use of public-private partnerships (PPPs) in place of traditional procurement. PPP has been utilised by governments around the world as an alternative approach to the traditional procurement methods (Khaderi et al, 2019;Palcic et al, 2019;O'Shea et al, 2018), due to the benefits gained from private sector participation such as alternative financing (Khaderi et al, 2019;Dewulf et al, 2012;The World Bank, 2017a), positive impact on quality and efficiency (Sadeghi et al, 2019;Ceruti, 2017;WBI, 2017), and providing value for money (Hu and Han, 2018;Yescombe and Farquharson, 2018;WBI, 2017).…”