Valuing an option to abandon a PPP toll road project
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Public-Private Partnerships (PPPs) are used worldwide as a method. History of PPP transportation projects such as toll assessment process of PPP projects has that may occur over a longer time horizon in a more realistic way. The theory of real options is often used as tool that provides a mathematical background for the quantification of various forms of flexibilities contracts. The objective of this paper is to investigate an option to abandon the project as one form of the flexibility in PPP contracts. A case study of benefits that this type of option has on the project's risk profile becomes more acceptable to potent Application of this type of flexibility in PPP contracts in Serbia is also discussed.
Source:Transport Research Arena (TRA) 2014 Proceedings, 2014
- Institut Francais des Sciences et Technologies des Transports, de l'Aménagement et des Réseaux (IFSTTAR),