A Review of Appraisal Methodologies of Feasibility Studies Done by Public Private Partnership in Road Project Development

Abstract

Recent years have seen a dramatic increase worldwide in the development and funding of public facilities and services, the techniques are continuously being developed to draw the public and private sectors together with a view to sharing the risks and rewards associated with such activities. These various techniques are often referred to as `Public/Private Partnership´ (PPP) and range from the simple contracting out of services to the involvement of the private sector in the financing, design, construction, operation, maintenance and, in some cases, ownership of major infrastructure facilities. In the PPP road projects, the government will carry out a socio-economic and a financial analysis as part of the appraisal of the project and its set-up at the time. The results of the road project appraisal have significant impact on the decision-making of the people who are directly and indirectly concerned. Since the aim of the road projects appraisal procedure is to prevent decision-makers from making subjective or risky decisions, the objective evaluation criteria should be used, and a reasonable and transparent evaluation procedure should be applied. To this end, this paper reviews advantages and disadvantages of appraisal methodologies and suggests appraisal tools for the road project development in the frame of PPP.