01519772

Component

https://doi.org/10.3141/2450-13

This paper presents a new public–private partnership (PPP) financial evaluation tool, PPP-VALUE (Public–Private Partnership Value-for-Money Analysis to Learn and Understand Evaluation). The tool is intended to help states learn how to assess quantitatively whether a PPP is appropriate for specific projects and to understand the relative impacts of the key drivers of value for money. The tool is focused on decisions about infrastructure delivery options to achieve the best value for the public. PPP-VALUE helps states learn how to assess the procuring agency’s costs for providing a project through the PPP procurement model and to compare that result with conventional procurement costs. The tool guides state officials in their efforts to understand better the impacts of project risk, revenue, and financing on public agency costs and helps them better understand the key financial variables in making a procurement decision. This paper demonstrates the use of PPP-VALUE with a simplified hypothetical project to help readers understand the basic concepts of value-for-money analysis and to appreciate the complexity of more detailed financial modeling needed to conduct a full-fledged analysis.

01553724

14-1279

English

pp 99–108

2014

Transportation Research Record: Journal of the Transportation Research Board

9780309295383

Print

Figures (3) ; References (19) ; Tables (1)

Construction projects; Economic analysis; Evaluation; Financing; Procurement; Public private partnerships; Revenues; Risk analysis; State departments of transportation

Analytical tools; Value for money

Administration and Management; Economics; Finance; Highways; Policy; I10: Economics and Administration

TRIS, TRB, ATRI

Jan 27 2014 2:29PM

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