IDEAS home Printed from https://ideas.repec.org/a/taf/conmgt/v17y1999i5p613-623.html
   My bibliography  Save this article

Private sector participation in infrastructure projects: a methodology to analyse viability of BOT

Author

Listed:
  • Malik Ranasinghe

Abstract

Many developing countries are now attempting to finance new infrastructure projects through private sector participation. This paper outlines a methodology based on financial and risk analyses that a government or a government utility can use to analyse the viability of private sector participation in new infrastructure projects. The water supply projects in Sri Lanka are used for the case study to outline the methodology. Financial analyses of a bulk water supply project and a water distribution project are carried out to estimate subsidy percentages that are required to make the projects viable, using a model developed for the investment analysis of all types of infrastructure project. This analysis looks at four pricing options for the bulk supply project, and sixteen procurement options for the distribution project, from the view point of the utility, for three cases of non-revenue water (35% as base case, 50% and 25% as extreme cases). The risk analysis takes into account the risk and uncertainty in non-revenue water, cost and demand estimates, rate of debt and forecasts of escalation. These analyses show that the best option for the utility is to obtain both bulk supply and distribution projects through private sector participation using BOT arrangements.

Suggested Citation

  • Malik Ranasinghe, 1999. "Private sector participation in infrastructure projects: a methodology to analyse viability of BOT," Construction Management and Economics, Taylor & Francis Journals, vol. 17(5), pages 613-623.
    • Handle: RePEc:taf:conmgt:v:17:y:1999:i:5:p:613-623
    DOI: 10.1080/014461999371222
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/014461999371222
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/014461999371222?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jeremy J. Warford, 1994. "Marginal Opportunity Cost Pricing for Municipal Water Supply," EEPSEA Special and Technical Paper sp199401t1, Economy and Environment Program for Southeast Asia (EEPSEA), revised Jan 1994.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. David Ford & Diane Lander & John Voyer, 2002. "A real options approach to valuing strategic flexibility in uncertain construction projects," Construction Management and Economics, Taylor & Francis Journals, vol. 20(4), pages 343-351.
    2. Chan Young Park & Wooyong Jung & Seung H. Han, 2020. "Risk Perception Gaps Between Construction Investors and Financial Investors of International Public–Private Partnership (PPP) Projects," Sustainability, MDPI, vol. 12(21), pages 1-20, October.
    3. Zhao, Zhen-Yu & Zuo, Jian & Zillante, George, 2013. "Factors influencing the success of BOT power plant projects in China: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 22(C), pages 446-453.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Maria Corazon Ebarvia, 1997. "Pricing for Groundwater Use of Industries in Metro Manila, Philippines," EEPSEA Research Report rr1997111, Economy and Environment Program for Southeast Asia (EEPSEA), revised Nov 1997.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:conmgt:v:17:y:1999:i:5:p:613-623. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RCME20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.