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Construction Management and Economics Volume 20, 2002 - Issue 2
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Original Articles

An option pricing-based model for evaluating the financial viability of privatized infrastructure projects

S. Ping Ho
&
Liang Y. Liu
Pages 143-156 | Published online: 21 Oct 2010

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Ahmad Meile Almeile, Maxwell Chipulu, Udechukwu Ojiako, Ramesh Vahidi & Alasdair Marshall. (2024) Project-focussed literature on public-private partnership (PPP) in developing countries: a critical review. Production Planning & Control 35:7, pages 683-710.
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Carlos Andres Zapata Quimbayo & Carlos Armando Mejía Vega. (2023) Credit risk in infrastructure PPP projects under the real options approach. Construction Management and Economics 41:4, pages 293-306.
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Zhenyao Wu, Shinya Hanaoka & Bin Shuai. (2022) Modeling optimal thresholds for minimum traffic guarantee in public–private partnership (PPP) highway projects. The Engineering Economist 67:1, pages 52-74.
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Xiuqin Wang, Bing Wang, Yantao Xu & Lanmin Shi. (2021) A chance constrained programming method to determine optimal capital structure for privatized infrastructure. Construction Management and Economics 39:7, pages 579-594.
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Borliang Chen. (2020) Optimal capital structure of government-subsidized private participation in infrastructure projects. The Engineering Economist 65:4, pages 321-338.
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Carlos Andrés Zapata Quimbayo, Carlos Armando Mejía Vega & Naielly Lopes Marques. (2019) Minimum revenue guarantees valuation in PPP projects under a mean reverting process. Construction Management and Economics 37:3, pages 121-138.
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Nunzia Carbonara & Roberta Pellegrino. (2018) Revenue guarantee in public–private partnerships: a win–win model. Construction Management and Economics 36:10, pages 584-598.
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Faruk Buyukyoran & Selin Gundes. (2018) Optimized real options-based approach for government guarantees in PPP toll road projects. Construction Management and Economics 36:4, pages 203-216.
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Zihan Liu, Ju’e Guo, Shubin Wang & Hongtao Liu. (2018) Government incentive strategies and private capital participation in China’s Shale gas development. Applied Economics 50:1, pages 51-64.
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Meghdad Attarzadeh, David K.H. Chua, Michael Beer & Ernest L.S. Abbott. (2017) Options-based negotiation management of PPP–BOT infrastructure projects. Construction Management and Economics 35:11-12, pages 676-692.
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Hui Ping Tserng, Shih-Ping Ho, Jui-Sheng Chou & Chieh Lin. (2014) Proactive measures of governmental debt guarantees to facilitate Public-Private Partnerships project. Journal of Civil Engineering and Management 20:4, pages 548-560.
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Yuri Lawryshyn & Sebastian Jaimungal. (2014) Optimising a modular expansion of a wastewater treatment plant. Civil Engineering and Environmental Systems 31:3, pages 243-259.
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Nunzia Carbonara, Nicola Costantino & Roberta Pellegrino. (2014) Revenue guarantee in public-private partnerships: a fair risk allocation model. Construction Management and Economics 32:4, pages 403-415.
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Manuel J. Rocha Armada, Paulo J. Pereira & Artur Rodrigues. (2012) Optimal subsidies and guarantees in public–private partnerships. The European Journal of Finance 18:5, pages 469-495.
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K.C. Iyer & Mohammed Sagheer. (2011) A real options based traffic risk mitigation model for build-operate-transfer highway projects in India. Construction Management and Economics 29:8, pages 771-779.
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Liang Shan, MichaelJ. Garvin & Raman Kumar. (2010) Collar options to manage revenue risks in real toll public‐private partnership transportation projects. Construction Management and Economics 28:10, pages 1057-1069.
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Jaebum Jun. (2010) Appraisal of combined agreements in BOT project finance: Focused on minimum revenue guarantee and revenue cap agreements. International Journal of Strategic Property Management 14:2, pages 139-155.
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Yu‐Lin Huang & Chai‐Chi Pi. (2009) Valuation of multi‐stage BOT projects involving dedicated asset investments: a sequential compound option approach. Construction Management and Economics 27:7, pages 653-666.
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Jicai Liu & CharlesY. J. Cheah. (2009) Real option application in PPP/PFI project negotiation. Construction Management and Economics 27:4, pages 331-342.
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Ivan Damnjanovic, Jennifer Duthie & S. Travis Waller. (2008) Valuation of strategic network flexibility in development of toll road projects. Construction Management and Economics 26:9, pages 979-990.
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MahdiH. Mattar & CharlesY. J. Cheah. (2006) Valuing large engineering projects under uncertainty: private risk effects and real options. Construction Management and Economics 24:8, pages 847-860.
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C. Y. Yiu & C. S. Tam. (2006) Rational under‐pricing in bidding strategy: a real options model. Construction Management and Economics 24:5, pages 475-484.
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CharlesY. J. Cheah & Jicai Liu. (2006) Valuing governmental support in infrastructure projects as real options using Monte Carlo simulation. Construction Management and Economics 24:5, pages 545-554.
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Yu‐Lin Huang & Shih‐Pei Chou. (2006) Valuation of the minimum revenue guarantee and the option to abandon in BOT infrastructure projects. Construction Management and Economics 24:4, pages 379-389.
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