An empirical analysis of success and failure factors for public-private partnerships in toll road investments | |
| Author | Sathita Taothong |
| Call Number | AIT Thesis no.TE-10-05 |
| Subject(s) | Public-private sector cooperation Toll roads |
| Note | A thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering inTransportationEngineering |
| Publisher | Asian Institute of Technology |
| Series Statement | Thesis ; no. TE-10-05 |
| Abstract | As provision of infrastructure services require high investment costs and the government has a limited amount of budget, a new approach of financing public infrastructure namely Public-Private Partnerships (PPPs) is introduced to overcome these problems. This PPPs scheme allows the private sector to participate and finance in the implementation of public infrastructures and public services projects. Toll roads and highways are among infrastructure investments under the PPPs scheme that have been implemented globally by numerous governments. The objective of this study is to empirically examine the success and failure factors of the PPPs toll road and highway projects using the logistic regression technique. Based on the data obtained fromthePrivate Participation in Infrastructure Projects Database compiled by the World Bank and Public-Private Infrastructure Advisory Facility Database (PPIAF),atotal of 218 PPPs toll road projects with the status of Concluded, Cancelled, Distressed and Operational are included in the analysis.Five main success and failure factors: project’s country attributes, past experiences with PPPs toll road and highway project, government support, project characteristics and the private sector’s attributes are examined.The estimation results indicate that successful toll road PPP projects tend to be located in countries with lower corruption levels, lower levels of democracy, higher GDP growth rates, higher stability of the government, lower income levels. In addition, the success of the projects is more likely to take place in countries outside of the East Asia and Pacific region and the Latin America and the Caribbean region. Moreover, the past experience on PPPs toll road projects is found to be a significant contributing factor to the outcome of the project, in the light that the successful PPPs toll road project tends to be governed by the public sector with more experience on the successful projects and the private sector with less experience on the failed projects. For the project characteristic factors, the type of the project route and the type of Private Participation in Infrastructure seem to be significant and have explicit effects on the success of the PPPs toll road projects. The projects located in urban cities are more likely to be cancelledor distressed, compared with those providing connections between cities. This also depends on the presence of competing routes as the results reveal that the shorter the distance from major roads running parallel to the PPPs toll road project, the higher the possibility of the project to be failed. With respect to the type of Private Participation, it is found that Greenfield PPPs toll road projects are more risky than Brownfield projects which involve an upgrade or changein existing facilities. |
| Year | 2011 |
| Corresponding Series Added Entry | Asian Institute of Technology. Thesis ; no. TE-10-05 |
| Type | Thesis |
| School | School of Engineering and Technology (SET) |
| Department | Department of Civil and Infrastucture Engineering (DCIE) |
| Academic Program/FoS | Transportation Engineering (TE) |
| Chairperson(s) | Kunnawee Kanitpong |
| Examination Committee(s) | Piyapong Jiwattanakulpaisarn;Thirayoot Limanond |
| Scholarship Donor(s) | Royal Thai Government;AIT Fellowship |
| Degree | Thesis (M. Eng.) - Asian Institute of Technology, 2010 |