Integrated analysis approach to structure PPP schemes for new infrastructure projects

Abstract

When considering public–private partnerships (PPP) for new infrastructure development, it is necessary to structure a project scheme based on the financial analyses from the perspective of private businesses, bankability analyses of private finances from the perspective of lenders, and public expenditure analyses from the viewpoint of the public sector after satisfying the criteria of the economic analysis from the viewpoint of the national economy. Although these four analyses are closely related, it is difficult to structure a scheme from a comprehensive viewpoint because they are typically implemented individually. Therefore, this paper proposes an analytical approach that integrates economic, financial, bankability, and public expenditure to conduct a comparative evaluation of various business schemes, including PPP. First, the basic idea of an integrated analysis was explained in detail. After developing each analysis table on a spreadsheet, an integrated analysis table was derived by interconnecting the tables. In addition, using an integrated analysis table prepared for a virtual new toll road project, the usefulness of the integrated analysis approach for structuring the project scheme was confirmed through case studies.