Abstract
The aim of this study is to demonstrate whether the macroeconomic variables have a significant impact on profitability, sustainability, and value creation of projects implemented with the project financing technique. The empirical analysis was developed using the performance trend from 1997 to 2014 (18 years) of 10 large infrastructure projects financed using the project financing technique in BRICS countries (Brazil, Russia, India, China, South Africa) and in PIIGS countries (Portugal, Italy, Ireland, Greece, Spain). The results show that the indicators of economic performance and financial sustainability are influenced by various macroeconomic variables. Instead, value creation indicators are affected little by exogenous factors. In the operative sense, our work suggests that in the design phase of an infrastructure it is necessary to consider that macroeconomic factors can positively or negatively impact economic and financial performance.
Highlights
Project finance has ancient origins, but in recent years has had numerous applications in the public-private partnership (PPP) for infrastructure sector
In our research we have selected a sample composed of BRICS and PIIGS countries that have invested in large infrastructures using the project financing technique from 1997 to 2014
The aim of this study is to demonstrate whether the macroeconomic variables have a significant impact on profitability, sustainability, and value creation of projects implemented with the project financing technique
Summary
Project finance has ancient origins, but in recent years has had numerous applications in the public-private partnership (PPP) for infrastructure sector The return of this financing model is caused by the crisis in public budgets that has reduced the available financial resources. In our research we have selected a sample composed of BRICS and PIIGS countries that have invested in large infrastructures using the project financing technique from 1997 to 2014. Starting from these hypotheses and methods, the contribution of our work is to highlight the existence of a link between macroeconomic variables and profitability, sustainability, and the creation of project finance value. In the fifth section the discussion and conclusions of the empirical research are shown
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