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Infrastructure public-private partnership project ecosystem - financial and economic positioning of stakeholders

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  • Pekka Levi�kangas
  • Tuomo Kinnunen
  • Aki Aapaoja

Abstract

The purpose of this paper is to construct an analytical cash flow-based project model to facilitate project appraisal of both private investors and public sector. With the help of the model that focuses on ecosystem and its stakeholders, it is simpler to identify potential conflicts usually encountered in public-private partnership (PPP) projects. The model construct is based on classical cash flow accounting and cost-benefit analysis. In the model, the flows of cash (private investors) and the flows of costs and benefits (public investors) are integrated in a single framework. The model shows that within the ecosystem the investors' (public vs. private) social, economic and financial targets are not necessarily coinciding. Prospecting of common ground and win-win situations becomes a crucial success factor for any PPP project. The paper discusses the policy and investment strategy implications for successful PPPs.

Suggested Citation

  • Pekka Levi�kangas & Tuomo Kinnunen & Aki Aapaoja, 2016. "Infrastructure public-private partnership project ecosystem - financial and economic positioning of stakeholders," The European Journal of Finance, Taylor & Francis Journals, vol. 22(3), pages 221-236, February.
    • Handle: RePEc:taf:eurjfi:v:22:y:2016:i:3:p:221-236
    DOI: 10.1080/1351847X.2014.972424
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    References listed on IDEAS

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    1. Alonso-Conde, Ana Belen & Brown, Christine & Rojo-Suarez, Javier, 2007. "Public private partnerships: Incentives, risk transfer and real options," Review of Financial Economics, Elsevier, vol. 16(4), pages 335-349.
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    3. Winston, Clifford & Yan, Jia, 2011. "Can privatization of U.S. highways improve motorists' welfare?," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 993-1005, August.
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