Welcome to ROSA P |
Stacks Logo
Advanced Search
Select up to three search categories and corresponding keywords using the fields to the right. Refer to the Help section for more detailed instructions.
Clear All Simple Search
Advanced Search
Developing and Testing a Framework for Alternative Ownership, Tenure and Governance Strategies for the Proposed Detroit-Windsor River Crossing - Phase II
  • Published Date:
  • Language:
Filetype[PDF-2.43 MB]

  • Publication/ Report Number:
  • Resource Type:
  • TRIS Online Accession Number:
  • Edition:
    Phase II Report
  • Abstract:
    Transportation infrastructures are integral parts of a nation’s network connectivity. Largescale transportation projects represent major investments devoted to the construction, operation, and maintenance of facilities over an extended period. Typically, these investments are irreversible in nature and require long-term commitment by the public at large relative to utilization, maintenance, and operation. Traditional economic analysis techniques are based upon the assumption of future cash flows that are fully deterministic in nature. Thus, there is an implicit assumption that these cash flows are not subject to any risk or uncertainty during the life of the project. In reality, many of these infrastructure projects are associated with significant uncertainties stemming from lack of knowledge about future cost streams. Revenue generation is also characterized by demand uncertainty. In emerging markets, macroeconomic, legal, institutional and regulatory concerns may add a level of uncertainty that can add complexities and introduce greater levels of risk. The term "risk" refers to situations where the decision maker can assign mathematical probabilities to the randomness relative to future outcomes. In contrast, the term uncertainty refers to situations when this randomness cannot be expressed in terms of mathematical probabilities. Transportation decisions have not typically considered risks and uncertainties in investment analysis. Current transportation literature does not indicate the availability of a comprehensive methodology in dealing with risks and uncertainties, though significant research has been conducted in economics, industrial engineering and financial management. Historically, the highway infrastructure in the U.S. has been built and maintained by public funds with a few exceptions. Tollways and turnpikes, typically supported by private funds, constitute a small fraction of U.S. highways, and are somewhat of an exception to this rule. These facilities are generally financed by long-term bonds, and the revenue generated by the facilities is used to pay for the investment over the life of the project. However, private sector participation in infrastructure investment is gaining more popularity because of scarcity of resources at the public sector, and because of the ability of the private sector to build, operate and maintain the facilities, while sharing future risks. The concept of Public Private Partnership (PPP) is gaining momentum because it enables the public sector to use private capital in exchange of future revenues. With proper advance planning, it may be possible to use the PPP approach to the mutual benefit of three major entities involved in large-scale transportation infrastructure projects: (1) the private, (2) the public and (3) the user group, each with a different set of objectives/expectations relative to the project. This research presents an analytic framework that can explore the merits and demerits associated with public and/or private ownership of a transportation infrastructure, where potentials for cost recovery through revenues generated appear to be high, even though the project may be fraught with risks at the Tech Report. The framework also explores various forms of joint ownership associated with the public and private enterprise. Ownership, Tenure & Governance (OTG) are three terms that incorporate the role of each entity in a strategy, where a number of OTG strategies are considered to encourage joint entity participation. The strategies vary in the degree of participation by the public and the private entity.
  • Format:
  • Main Document Checksum:
  • Supporting Files:
    No Additional Files
No Related Documents.
You May Also Like: