Commercialization of Revenue Guarantee Options in Real Toll Highway PPP Projects: Prospects and Challenges

Interest in Public-Private Partnership (PPP) for highway projects continues despite the recent economic troubles. In the current environment, however, their success is even more dependent upon understanding and managing the risks inherent in these projects, with revenue risk being a crucial one. This paper investigates whether revenue guarantee option can become a more viable technique in real toll projects to supplement existing risk management practices for certain projects¡¯ needs. Previous research has explored revenue guarantee options as a means to assess and mitigate revenue risk. This paper advances this concept, and studies the potential of commercializing such an option. Specifically, the paper explores option types and introduces a practical implementation framework. In addition, it investigates the challenges of commercialization and suggests how to evaluate implementation feasibility in future work.

• Corporate Authors:

  Transportation Research Board

  500 Fifth Street, NW
  Washington, DC  United States  20001
• Authors:
  • Shan, Liang
  • Garvin, Michael
• Conference:
  • Transportation Research Board 89th Annual Meeting
  • Location: Washington DC, United States
  • Date: 2010-1-10 to 2010-1-14
• Date: 2010

Language

• English

Media Info

• Media Type: DVD
• Features: Figures; References; Tables;
• Pagination: 12p
• Monograph Title: TRB 89th Annual Meeting Compendium of Papers DVD

Subject/Index Terms

• TRT Terms: Feasibility analysis; Finance; Financing; Project management; Public private partnerships; Revenues; Risk management; Road construction
• Subject Areas: Construction; Finance; Highways; I10: Economics and Administration; I72: Traffic and Transport Planning;

Filing Info

• Accession Number: 01158094
• Record Type: Publication
• Report/Paper Numbers: 10-1106
• Files: TRIS, TRB
• Created Date: May 30 2010 7:44AM