01373326

Component

As provision of infrastructure services require high investment costs and the government has a limited amount of budget, a new approach of financing public infrastructure namely Public-Private Partnerships (PPPs) is introduced to overcome these problems. This PPPs scheme allows the private sector to participate and finance in the implementation of public infrastructures and public services projects. Toll roads and highways are among infrastructure investments under the PPPs scheme that have been implemented globally by numerous governments. The objective of this study is to empirically examine the success and failure factors of the PPPs toll road and highway projects using the logistic regression technique. Based on the data obtained from the Private Participation in Infrastructure Projects Database compiled by the World Bank and Public-Private Infrastructure Advisory Facility Database (PPIAF), a total of 218 PPPs toll road projects with the status of Concluded, Cancelled, Distressed and Operational are included in the analysis. Five main success and failure factors: project’s country attributes, past experiences with PPPs toll road and highway project, government support, project characteristics and the private sector’s attributes are examined. The estimation results indicate that successful toll road PPP projects tend to be located in countries with lower corruption levels, lower levels of democracy, higher GDP growth rates, higher stability of the government, lower income levels. In addition, the success of the projects is more likely to take place in countries outside of the East Asia and Pacific region and the Latin America and the Caribbean region. Moreover, the past experience on PPPs toll road projects is found to be a significant contributing factor to the outcome of the project, in the light that the successful PPPs toll road project tends to be governed by the public sector with more experience on the successful projects and the private sector with less experience on the failed projects. For the project characteristic factors, the type of the project route and the type of Private Participation in Infrastructure seem to be significant and have explicit effects on the success of the PPPs toll road projects. The projects located in urban cities are more likely to be cancelled or distressed, compared with those providing connections between cities. This also depends on the presence of competing routes as the results reveal that the shorter the distance from major roads running parallel to the PPPs toll road project, the higher the possibility of the project to be failed. With respect to the type of Private Participation, it is found that Greenfield PPPs toll road projects are more risky than Brownfield projects which involve upgrading existing facilities.

This paper was sponsored by TRB committee ABE25 Congestion Pricing

01362476

12-3586

English

21p

2012

Transportation Research Board 91st Annual Meeting

Digital/other

References (41) ; Tables

Cities and towns; Financing; Government funding; Highways; Infrastructure; International; Private enterprise; Project management; Public private partnerships; Socioeconomic factors; Toll roads; Urban areas

Finance; Highways; Society; I10: Economics and Administration; I20: Design and Planning of Transport Infrastructure

Transportation Research Board Annual Meeting 2012 Paper #12-3586

TRIS, TRB

Feb 8 2012 5:17PM