Title: Master planning frame for road infrastructure projects: decision-making model for private investments
Authors: Norayr Badasyan; Andreas Wibowo; Ansgar Bendiek
Addresses: TA Europe GmbH, Königsallee 27, 40212 Düsseldorf, Germany ' Parahyangan Catholic University, Ciumbuleuit, No. 94, Bandung 40141, Indonesia ' HOCHTIEF PPP Solutions GmbH, Alfredstraße 236, 45133 Essen, Germany
Abstract: This paper develops a project management framework that master plans private investments in road infrastructure by providing the primary mechanisms for monetarising social benefits under different public-private partnership payment mechanisms. Its novelty lies in providing a platform for decision-makers to compare various private investment alternatives by assessing the possible impacts of the payment mechanisms on the relevant projects' social benefits and economic results. The paper uses a mix of qualitative and quantitative methods. It determines the main social effects of the relevant projects under a social welfare framework and develops formulas that enable decision-makers to compare the impact of various payment mechanisms on the added social value. This paper demonstrates that the social outcomes of projects can vary considerably, depending on the chosen payment mechanism. The proposed framework will facilitate the stakeholders to develop projects with a broader spectrum of possible analyses to correlate payment mechanisms and social welfare.
Keywords: public-private partnership; PPP; infrastructure management; infrastructure economics; economic net present value; project management; road sector.
DOI: 10.1504/IJCIS.2023.130922
International Journal of Critical Infrastructures, 2023 Vol.19 No.3, pp.231 - 247
Received: 20 Jan 2021
Accepted: 10 May 2021
Published online: 14 May 2023 *