PROJECT FINANCING AND RISK MANAGEMENT IN TRANSPORTATION PROJECTS: A PUBLIC PRIVATE PARTNERSHIPS FRAMEWORK

  • I Putu Mandiartha The University of Melbourne, VIC, Australia 3010
  • Colin F. Duffield The University of Melbourne, VIC, Australia 3010
  • Gigih U. Atmo The University of Melbourne, VIC, Australia 3010

Abstract

Public Private Partnerships (PPP) is a relatively new type of public infrastructure provision contract. Thus, the market maturity is varied between countries and even between sectors within a country. This research examined Australian transportation PPP projects as an example of a mature market sector through analysis of contracts. A series of case study projects were analysed on the basis of publically available government and corporate data. The case studies were drawn from two most advance states in this type of procurement contract i.e. Victoria and New South Wales and the projects were commenced prior to the global financial crisis (GFC). The analysis focuses on issues of equity arrangement, risk allocation and revenue/payment arrangement. From the perspective of equity arrangement, risk allocation and revenue/payment arrangement, the PPPs transportation project in Australia experiences a consistent arrangement which shows the maturity of this market sector. Inconsistency is observed only on the initial equity provision where the amount of financier percentage is reduced. However, the role of the financier remains unchanged as the leader of the project entity. In terms of risk; in transport projects, the most sensitive issue that has been given most concern by the contracts is the revenue or traffic demand risk and it was this risk that materialised post the GFC to damage the financial viability of some of the projects.

Published
2011-08-01
How to Cite
PUTU MANDIARTHA, I; F. DUFFIELD, Colin; U. ATMO, Gigih. PROJECT FINANCING AND RISK MANAGEMENT IN TRANSPORTATION PROJECTS: A PUBLIC PRIVATE PARTNERSHIPS FRAMEWORK. EACEF - International Conference of Civil Engineering, [S.l.], v. 1, p. 012, aug. 2011. Available at: <http://proceeding.eacef.com/ojs/index.php/EACEF/article/view/248>. Date accessed: 19 may 2024.
Section
Group of Construction Management and Project Management