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Urban rail transit PPPs: Survey and risk assessment of recent strategies

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  • Phang, Sock-Yong

Abstract

The proliferation of urban rail transit public-private partnerships (PPPs) in Latin America and Southeast Asia is a recent phenomenon. This paper first reviews the theoretical literature on the public procurement versus PPP decision in the context of rail transit and assesses the risks involved in entering these partnerships. The urban rail transit PPP approaches adopted in Bangkok, Kuala Lumpur, Buenos Aires, Rio de Janeiro, Singapore, Hong Kong, and London are described and classified into four broad approaches: (i) the development of new systems through Design-Build-Finance-Operate (DBFO), (ii) the concessioning of rail and subway services, (iii) the sale of state-owned operators through share issue privatization, and (iv) PPPs for infrastructure maintenance and upgrading. The different risk allocation strategies adopted under each of the above approach are analyzed for the extent to which they correspond to the theoretical recommendations. The concluding section provides a summary of the trade-offs that policy makers make when deciding between alternative strategies.

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  • Phang, Sock-Yong, 2007. "Urban rail transit PPPs: Survey and risk assessment of recent strategies," Transport Policy, Elsevier, vol. 14(3), pages 214-231, May.
    • Handle: RePEc:eee:trapol:v:14:y:2007:i:3:p:214-231
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    Cited by:

    1. Cruz, Carlos Oliveira & Marques, Rui Cunha, 2011. "Contribution to the study of PPP arrangements in airport development, management and operation," Transport Policy, Elsevier, vol. 18(2), pages 392-400, March.
    2. Zhansheng Liu & Yueyue Jiao & Anxiu Li & Ximei Liu, 2021. "Risk Assessment of Urban Rail Transit PPP Project Construction Based on Bayesian Network," Sustainability, MDPI, vol. 13(20), pages 1-23, October.
    3. Sounman Hong, 2016. "When does a public–private partnership (PPP) lead to inefficient cost management? Evidence from South Korea’s urban rail system," Public Money & Management, Taylor & Francis Journals, vol. 36(6), pages 447-454, September.
    4. Bugalia, Nikhil & Maemura, Yu & Ozawa, Kazumasa, 2021. "Demand risk management of private High-Speed Rail operators: A review of experiences in Japan and Taiwan," Transport Policy, Elsevier, vol. 113(C), pages 67-76.
    5. Bray, David & Sayeg, Philip, 2013. "Private sector involvement in urban rail: Experience and lessons from South East Asia," Research in Transportation Economics, Elsevier, vol. 39(1), pages 191-201.
    6. Chang, Zheng & Phang, Sock-Yong, 2017. "Urban rail transit PPPs: Lessons from East Asian cities," Transportation Research Part A: Policy and Practice, Elsevier, vol. 105(C), pages 106-122.
    7. Love, Peter E.D. & Ika, Lavagnon A. & Matthews, Jane & Li, Xinjian & Fang, Weili, 2021. "A procurement policy-making pathway to future-proof large-scale transport infrastructure assets," Research in Transportation Economics, Elsevier, vol. 90(C).
    8. Matti Siemiatycki, 2011. "Urban Transportation Public–Private Partnerships: Drivers of Uneven Development?," Environment and Planning A, , vol. 43(7), pages 1707-1722, July.
    9. Du, Zhouyang & Tang, Jinjun & Qi, Yong & Wang, Yiwei & Han, Chunyang & Yang, Yifan, 2020. "Identifying critical nodes in metro network considering topological potential: A case study in Shenzhen city—China," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 539(C).
    10. Dementiev, Andrei & Loboyko, Anfisa, 2014. "Trusting partnerships in a regulatory game: The case of suburban railway transport in Russia," Research in Transportation Economics, Elsevier, vol. 48(C), pages 209-220.
    11. Stephanie Farmer, 2011. "Uneven Public Transportation Development in Neoliberalizing Chicago, USA," Environment and Planning A, , vol. 43(5), pages 1154-1172, May.
    12. Babatunde, Solomon Olusola & Perera, Srinath, 2017. "Analysis of traffic revenue risk factors in BOT road projects in developing countries," Transport Policy, Elsevier, vol. 56(C), pages 41-49.
    13. Stephanie Farmer, 2014. "Cities as Risk Managers: The Impact of Chicago's Parking Meter P3 on Municipal Governance and Transportation Planning," Environment and Planning A, , vol. 46(9), pages 2160-2174, September.
    14. de Jong, Martin & Mu, Rui & Stead, Dominic & Ma, Yongchi & Xi, Bao, 2010. "Introducing public–private partnerships for metropolitan subways in China: what is the evidence?," Journal of Transport Geography, Elsevier, vol. 18(2), pages 301-313.
    15. Chang, Zheng, 2013. "Public–private partnerships in China: A case of the Beijing No.4 Metro line," Transport Policy, Elsevier, vol. 30(C), pages 153-160.
    16. Kevin Dwarka & Eran Feitelson, 2013. "The political economy of urban infrastructure," Chapters, in: Hugo Priemus & Bert van Wee (ed.), International Handbook on Mega-Projects, chapter 8, pages 158-181, Edward Elgar Publishing.
    17. Carpintero, Samuel & Siemiatycki, Matti, 2016. "The politics of delivering light rail transit projects through public-private partnerships in Spain: A case study approach," Transport Policy, Elsevier, vol. 49(C), pages 159-167.

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