Developing a Methodological Framework to Value Public Sector Risk Exposure in PPP Agreements
Record Type: UTC

Transportation agencies worldwide and across the United States (US) are increasingly using (or considering to use) Public Private Partnerships (PPPs) as a mechanism to finance and deliver badly needed transportation infrastructure. The key premises behind the increased use PPPs as project delivery mechanisms are the interdependent concepts of Value for Money (VfM) and the optimum allocation of project risks to the partner most capable to manage them. Internationally, countries with relatively longer experience in PPPs have devised different ways to measure risks, and a handful of other countries have developed well documented methodologies to assess VfM. However, the structured integration of these two interrelated concepts has not been fully documented. In the US, transportation agencies (including agencies in Texas) currently lack a well documented approach to consistently evaluate and account for the financial risk exposure of the public sector in a PPP and therefore a methodology to incorporate its effect in the delivery of VfM. This project develops a methodological framework, based on US and international best practices, to evaluate the financial risk exposure of the public sector when delivering transportation infrastructure through PPP agreements in the context of VfM in the US.
Start date: 2008/9/1
End date: 2010/8/31
Status: Active
Contract/Grant Number: DTRT06-G-0044
Secondary Number: 00010
Total Dollars: 99979
Source Organization: University Transportation Center for Mobility
Date Added: 03/07/2008
Index Terms: Governments, Public private partnerships, Risk management, Financial analysis, Financial responsibility, Financing, Value for money, Texas, Research projects,

University Transportation Center for Mobility
http://utcm.tamu.edu
Texas Transportation Institute
Texas A&M University System
3135 TAMU
College Station, TX 77843-3135
USA
Phone: (979) 845-2538
Fax: (979) 845-9761

Tooley, Melissa S
Phone: (979) 845-8545
Fax: (979) 845-9761
Email: m-tooley@tamu.edu

Texas Transportation Institute, El Paso
http://tti.tamu.edu/groups/program.htm?p_org_code=GEP
Research and Implementation
4050 Rio Bravo Drive, Suite 151
El Paso, TX 79902
USA

Aldrete, Rafael M.
Phone: (915) 532-3759
Email: r-aldrete@tamu.edu