Abstract
Value for money (VFM) analysis is used to evaluate public–private partnership (PPP) concession proposals. However, the VFM approach cannot account quantitatively for benefits to travelers and others from the delivery of a project earlier than would have been possible under conventional procurement. Benefit–cost analysis (BCA) can address this issue and other nonfinancial costs and benefits. In the context of PPP project delivery, BCA may be conducted in three steps, namely, through ( a) project evaluation, with the assumption of conventional delivery of a project on the basis of a financially feasible schedule; ( b) incremental evaluation of an accelerated delivery schedule, with the assumption that the project can be conventionally delivered within the same time frame as would the proposed PPP; and ( c) incremental evaluation of PPP delivery. This project delivery BCA process is demonstrated in this paper with the use of an illustrative highway project.
Published Version
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