Abstracts – Browse Results

Search or browse again.

Click on the titles below to expand the information about each abstract.
Viewing 11 results ...

Araujo, L G, Piña, A B S, Aidar, L A G, Coelho, G O and Carvalho, M T M (2019) Recommendations and guidelines for implementing PPP projects. Built Environment Project and Asset Management, 9(02), 262–76.

Dabarera, G, Perera, B and Rodrigo, M (2019) Suitability of public-private-partnership procurement method for road projects in Sri Lanka. Built Environment Project and Asset Management, 9(02), 199–213.

Hartwell, J C, Upadhyay, Y and Sourani, A (2019) Influential factors of life cycle management in education PFI projects. Built Environment Project and Asset Management, 9(02), 302–14.

Jayasuriya, S, Zhang, G and Jing Yang, R (2019) Challenges in public private partnerships in construction industry. Built Environment Project and Asset Management, 9(02), 172–85.

Kavishe, N, Chileshe, N and Jefferson, I (2019) Public–private partnerships in Tanzanian affordable housing schemes. Built Environment Project and Asset Management, 9(02), 233–47.

Marinelli, M (2019) Evaluation of PPP road projects in Greece. Built Environment Project and Asset Management, 9(02), 186–98.

Oliveros-Romero, J and Aibinu, A A (2019) Ex post impact evaluation of PPP projects: an exploratory research. Built Environment Project and Asset Management, 9(02), 315–30.

Pellegrino, R, Carbonara, N and Costantino, N (2019) Public guarantees for mitigating interest rate risk in PPP projects. Built Environment Project and Asset Management, 9(02), 248–61.

  • Type: Journal Article
  • Keywords: Risk mitigation; Public; private partnership; Real options; Public finance; Maximum interest rate guarantee; Public guarantees;
  • ISBN/ISSN: 2044-124X
  • URL: https://doi.org/10.1108/BEPAM-01-2018-0012
  • Abstract:
    The purpose of this paper is to deal with the maximum interest rate guarantees (MIRGs), and develop a methodology for setting the optimal value of the interest rate cap, namely the maximum interest rate above which the private investor will obtain reimbursement from the government, which balances the interests of the parties involved in the project. Design/methodology/approach The mechanism underlying the MIRG is modeled through real options. Monte Carlo simulation is employed as the option-pricing method. The resulting real option-based model is applied to the case of the “Camionale di Bari” toll road (Southern Italy). Findings The application provides some insights for the policy maker called to define the proper forms of guarantees. Furthermore, the results support the negotiation process, allowing the different actors to structure the guarantee in a way that satisfies all the parties and fairly allocates risks between them according to different operational and financial conditions. Originality/value The novelty of the contribution is triple. First, the authors advance the state of the art on government supports by focusing on the interest rate guarantee. Second, the authors enrich the existing studies on MIRG by proposing a quantitative model to set the guarantee in compliance with the public–private win-win principle. The developed real option-based model supports the decision maker in finding the optimal value of the interest rate cap, which is able to satisfy the interests of the parties involved in the project. Third, the authors consider not only the private sponsor and the government, as traditionally made by the models developed for other guarantees, but also the lender.

Umar, A A, Zawawi, N A W A and Abdul-Aziz, A (2019) Exploratory factor analysis of skills requirement for PPP contract governance. Built Environment Project and Asset Management, 9(02), 277–90.

Zhang, Y and Tan, W (2019) The leading small group: an institutional innovation for PPP projects in China. Built Environment Project and Asset Management, 9(02), 291–301.

Zhao, N and Ying, F (2019) Method selection: a conceptual framework for public sector PPP selection. Built Environment Project and Asset Management, 9(02), 214–32.