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Evaluating highway public-private partnerships: Evidence from U.S. value for money studies

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  • Kweun, Jeong Yun
  • Wheeler, Porter K.
  • Gifford, Jonathan L.

Abstract

This paper examines the state of practice used in the value for money (VfM) analysis of highway projects in the United States. Based on direct contact with public transportation agencies and the search of project websites, seven VfM studies were selected for a comparative analysis. The paper finds that the choice of public sector comparator (PSC) model varied from one study to another, which is driven by agency experience. The risks transferred from employing the public-private partnership (P3) model are closely related to the choice of repayment schemes. Discount rates used in practice are similar across studies despite wide-ranging debates over appropriate rates in the literature. VfM studies show the advantages of agency municipal bonds are reduced when favorable borrowing rates are available to private partners. The paper lastly examines reasons why agencies chose not to deliver projects as P3s based on VfM studies.

Suggested Citation

  • Kweun, Jeong Yun & Wheeler, Porter K. & Gifford, Jonathan L., 2018. "Evaluating highway public-private partnerships: Evidence from U.S. value for money studies," Transport Policy, Elsevier, vol. 62(C), pages 12-20.
    • Handle: RePEc:eee:trapol:v:62:y:2018:i:c:p:12-20
    DOI: 10.1016/j.tranpol.2017.03.009
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    Cited by:

    1. Zhao, Jianfeng & Greenwood, David & Thurairajah, Niraj & Liu, Henry J. & Haigh, Richard, 2022. "Value for money in transport infrastructure investment: An enhanced model for better procurement decisions," Transport Policy, Elsevier, vol. 118(C), pages 68-78.
    2. Nannan Wang & Xiaoyan Chen & Guobin Wu, 2019. "Public Private Partnerships, a Value for Money Solution for Clean Coal District Heating Operations," Sustainability, MDPI, vol. 11(8), pages 1-18, April.
    3. Zhao, Jianfeng & Liu, Henry J. & Love, Peter E.D. & Greenwood, David J. & Sing, Michael C.P., 2022. "Public-private partnerships: A dynamic discrete choice model for road projects," Socio-Economic Planning Sciences, Elsevier, vol. 82(PA).
    4. Jingfeng Yuan & Wenying Ji & Jiyue Guo & Mirosław J. Skibniewski, 2019. "Simulation-based dynamic adjustments of prices and subsidies for transportation PPP projects based on stakeholders’ satisfaction," Transportation, Springer, vol. 46(6), pages 2309-2345, December.
    5. Spohr, Jonas & Wikström, Kim & Ronikonmäki, Niko-Matti & Lepech, Michael & In, Soh Young, 2024. "Are private investors overcompensated in infrastructure projects?," Transport Policy, Elsevier, vol. 152(C), pages 1-8.

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