Mechanisms for Transportation Infrastructure Investment in Developing Countries
Authors: Snehamay Khasnabis, Sunder Lall Dhingra, Sabyasachee Mishra, and Chirag Safi (2010)
Report
Synopsis: In this paper, the authors examine different investment mechanisms for transportation infrastructure projects involving the private enterprise in developing countries. Roles identified vary from those of a financier to an operator for successful public-private ventures. A case study involving such a joint venture in India, the Mumbai Pune Expressway/National Highway 4 (MPEW/NH4) is presented, and fiscal implications of the program, both from the perspective of the public and the private enterprise are examined. The study concludes that if properly planned, joint ventures can be mutually beneficial. A joint public-private program may enable the public sector to use the resources saved for other public projects. It also provides the private agency an opportunity to invest monies in a profitable enterprise that yields social benefits, (e.g. improving mobility, promoting economic development, etc.). Careful analysis must be conducted before the project is undertaken to assess the financial and economic implications of the project from each participant’s viewpoint, with due regard to risks and uncertainties associated with such long term investments.
Authors: Snehamay Khasnabis, Sabyasachee Mishra, and Chirag Safi (2012)
Report
Synopsis: The purpose of evaluating mutually exclusive alternatives is to select the one with the highest benefits for implementation. A number of analytic techniques are available for such evaluation purposes. Four such techniques: Cost Effectiveness (C/E), Benefit Cost Ratio (B/C), Internal Rate of Return (IRR), and Pay-off Period (PP) are discussed in this paper, including their theoretical foundation and data requirements, Also discussed are the measures of effectiveness (MOE) associated with each of these techniques, and how these are to be interpreted.
Authors: Snehamay Khasnabis, Sunder Lall Dhingra, Sabyasachee Mishra, and Chirag Safi (2010)
Report
Synopsis: In this paper, the authors examine different investment mechanisms for transportation infrastructure projects involving the private enterprise in developing countries. Roles identified vary from those of a financier to an operator for successful public-private ventures. A case study involving such a joint venture in India, the Mumbai Pune Expressway/National Highway 4 (MPEW/NH4) is presented, and fiscal implications of the program, both from the perspective of the public and the private enterprise are examined. The study concludes that if properly planned, joint ventures can be mutually beneficial. A joint public-private program may enable the public sector to use the resources saved for other public projects. It also provides the private agency an opportunity to invest monies in a profitable enterprise that yields social benefits, (e.g. improving mobility, promoting economic development, etc.). Careful analysis must be conducted before the project is undertaken to assess the financial and economic implications of the project from each participant’s viewpoint, with due regard to risks and uncertainties associated with such long term investments.
An Evaluation Procedure for Mutually Exclusive Highway Safety Alternatives under Different Program Missions
Authors: Snehamay Khasnabis, Sabyasachee Mishra, and Chirag Safi (2012)
Report
Synopsis: The purpose of evaluating mutually exclusive alternatives is to select the one with the highest benefits for implementation. A number of analytic techniques are available for such evaluation purposes. Four such techniques: Cost Effectiveness (C/E), Benefit Cost Ratio (B/C), Internal Rate of Return (IRR), and Pay-off Period (PP) are discussed in this paper, including their theoretical foundation and data requirements, Also discussed are the measures of effectiveness (MOE) associated with each of these techniques, and how these are to be interpreted.