Title: Business models and the private provision of public infrastructure: leaving no stone unturned
Authors: Norayr Badasyan; Hans Wilhelm Alfen
Addresses: Department of Construction Economics, Bauhaus-Universität Weimar, Marienstrasse 7a, 99423, Weimar, Germany ' Faculty of Civil and Structural Engineering, Bauhaus-Universität Weimar, Marienstrasse 7a, 99423, Weimar, Germany
Abstract: The present paper introduces a new approach for the calculation of the economic internal rate of return for the projects in the road sector aiming to consider the link between the chosen business models/revenue mechanisms and the economic output. The novelty of the current approach is that the economic output of the road projects is considered based on both design options of the roads and the chosen organisational model for the private investments. The current approach makes a strong fundament for the decision makers to master plan an economically viable road projects developed under private investment models.
Keywords: infrastructure economics; infrastructure finance; PPP; road.
International Journal of Critical Infrastructures, 2018 Vol.14 No.4, pp.360 - 374
Received: 17 Mar 2018
Accepted: 07 Jun 2018
Published online: 03 Oct 2018 *