01367748

Component

Communities can benefit most from private provision of public infrastructure when project risks are distributed appropriately between private and public sectors. Although there is a good understanding of most of the risks associated with privatized infrastructure projects, the risk of natural hazards is rather less known or overlooked due to limited historical data and experience. The natural hazard risk is generally covered via insurance contracts during the construction phase, but completed projects often remain self-insured, uninsured, or underinsured. Moreover, insurance companies cover losses due to physical damage, but losses due to downtime may not be covered because compensation is difficult to assess. This paper presents an engineering-based financial valuation method to improve risk-based decision making by providing insights into damage potential of civil infrastructure against natural hazards. The utility of the valuation method is tested for bridge projects with different design characteristics under seismic risk. The results showed that design characteristics of the bridge structures may result in variations up to 15 percent in the market value of infrastructure investments.

01362476

12-3841

English

20p

2012

Transportation Research Board 91st Annual Meeting

Digital/other

Figures; References; Tables

Bridge design; Bridges; Disasters; Earthquakes; Investments; Risk management; Structural engineering; Valuation

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

Transportation Research Board Annual Meeting 2012 Paper #12-3841

TRIS, TRB

Feb 8 2012 5:19PM