The limited financial capabilities of public owners gave rise to the Public-Private Partnership (PPP) approach as an innovative project finance to attract private investment to highway projects. Nonetheless, many privately financed road projects have had difficulties in fulfilling construction debt obligations due to operating deficits. These difficulties are mainly attributed to incomprehensive evaluation of project financial viability and poor selection of key concession items. This research presents a comprehensive framework which provides an optimal set of key concession items for setting up financial viable PPP toll road projects. These key concession items include toll rates, a concession length, an equity level, and a rate of return. The proposed framework utilizes a modified User Equilibrium traffic assignment algorithm to help estimate revenue from toll road traffic volume considering its interaction with levels of service. The framework also takes into consideration the relationships between the deterioration of the pavement serviceability and required maintenance caused by the traffic volume, which facilitates the quantification of the toll road maintenance expenditures. From the estimated cash flow, a Genetic Algorithm (GA) will be applied to search for an optimal combination of the key concession items that would maximize profit from private investment in public highway projects.


    Access

    Check access

    Check availability in my library

    Order at Subito €


    Export, share and cite



    Title :

    Optimization Application for Financial Viability Evaluation of PPP Toll Road Projects


    Contributors:

    Conference:

    Construction Research Congress 2012 ; 2012 ; West Lafayette, Indiana, United States


    Published in:

    Publication date :

    2012-05-17




    Type of media :

    Conference paper


    Type of material :

    Electronic Resource


    Language :

    English




    The economic and financial risk of toll road projects

    Schutte, I. C. | British Library Conference Proceedings | 1994


    Private Involvement in Toll Road Projects

    Pradono / Muromachi, Y. / Harata, N. et al. | ASCE | 2000


    Private Involvement in Toll Road Projects

    Pradono / Muromachi, Y. / Harata, N. et al. | British Library Conference Proceedings | 2000



    Automated toll enforcement financial and policy considerations: the Dulles toll road case

    Maggio, M. / Shiftan, Y. | British Library Online Contents | 2005