1,827
Views
20
CrossRef citations to date
0
Altmetric
Original Articles

Options-based negotiation management of PPP–BOT infrastructure projects

, , &
Pages 676-692 | Received 05 Sep 2015, Accepted 25 Apr 2017, Published online: 16 May 2017

References

  • Ashuri, B., et al., 2012. Risk-neutral pricing approach for evaluating BOT highway projects with government minimum revenue guarantee options. Journal of construction engineering and management, 138 (4), 545–557.10.1061/(ASCE)CO.1943-7862.0000447
  • Attarzadeh, M., 2007. Economic appraisal of BOT projects-financial risks management model. Thesis (MSc). Amirkabir University of Technology.
  • Attarzadeh, M. 2014. Negotiation-based risk management for PPP-BOT infrastructure projects. Thesis (PhD). National University of Singapore.
  • Attarzadeh, M., et al., 2017. Fuzzy randomness simulation of long term infrastructure projects. ASCE-ASME journal of risk and uncertainty in engineering systems, part a: civil engineering, 3 (3), 04017002. doi:10.1061/AJRUA6.0000902.
  • Black, F. and Scholes, M., 1973. The pricing of options and corporate liabilities. Journal of political economy, 81 (3), 637–654.10.1086/260062
  • Brandao, L.E. and Saraiva, E., 2008. The option value of government guarantees in infrastructure projects. Construction management and economics, 26 (11), 1171–1180.10.1080/01446190802428051
  • Carbonara, N., Costantino, N. and Pellegrino, R., 2014a. Revenue guarantee in public-private partnerships: A fair risk allocation model. Construction management and economics, 32 (4), 403–415.10.1080/01446193.2014.906638
  • Carbonara, N., Costantino, N. and Pellegrino, R., 2014b. Concession period for PPPs: A win–win model for a fair risk sharing. International journal of project management, 32 (7), 1223–1232.10.1016/j.ijproman.2014.01.007
  • Charoenpornpattana, S., Minato, T., and Nakahama, S. (2003). Government supports as bundle of real options in built operate transfer highways project. available from: http://www.realoptions.org/papers2003/CharoenMinatoNakahama.pdf
  • Cheah, C.Y.J. and Liu, J., 2005. Real option evaluation of complex infrastructure projects: The case of dabhol power project in India. Journal of financial management of property and construction, 10 (1), 55–68.
  • Cheah, C.Y.J. and Liu, J., 2006. Valuing governmental support in infrastructure projects as real options using Monte Carlo simulation. Construction management and economics, 24 (5), 545–554.10.1080/01446190500435572
  • Chiara, N. and Garvin, M.J., 2008. Variance models for project financial risk analysis with applications to greenfield BOT highway projects. Construction management and economics, 26 (9), 925–939.10.1080/01446190802259027
  • Chiara, N., Garvin, M., and Vecer, J., 2007. Valuing simple multiple-exercise real options in infrastructure projects. Journal of infrastructure systems, 13 (2), 97–104.10.1061/(ASCE)1076-0342(2007)13:2(97)
  • Cox, J.C., Ross, S.A., and Rubinstein, M., 1979. Option pricing: A simplified approach. Journal of financial economics, 7 (3), 229–263.10.1016/0304-405X(79)90015-1
  • Damodaran, A. 2001. The promise and peril of real options. Working Paper, Stern School of Business.
  • Damodaran, A. 2012. Investment valuation: tools and techniques for determining the value of any asset. 3rd ed. Hoboken, NJ: John Wiley & Sons. ISBN: 978-1-118-01152-2. 992.
  • Dubois, D. and Prade, H., 1988. Possibility theory. New York, NY: Plenum.10.1007/978-1-4684-5287-7
  • Ferrero, A. and Salicone, S., 2002. An innovative approach to the determination of uncertainty in measurements based on fuzzy variables. IEEE transactions on instrumentation and measurement, 52 (4), 1174–1181. doi:10.1109/TIM.2003.815993.
  • Ferrero, A. and Salicone, S., 2006. Fully comprehensive mathematical approach to the expression of uncertainty in measurement. IEEE transactions on instrumentation and measurement, 55 (3), 706–712. doi:10.1109/AMUEM.2005.1594595.
  • Fishbein, G. and Babbar, S. 1996. Private financing of toll roads. ( Discussion Paper Series No. 17). Washington, DC: World Bank
  • Ford, D.N., Lander, D.M., and Voyer, J.J., 2002. A real options approach to valuing strategic flexibility in uncertain construction projects. Construction management and economics, 20 (4), 343–351.10.1080/01446190210125572
  • Galera, A.L.L. and Soliño, A.S., 2010. A real options approach for the valuation of highway concessions. Transportation science, 44 (3), 416–427.10.1287/trsc.1090.0299
  • Garvin, M.J. and Cheah, C.Y.J., 2004. Valuation techniques for infrastructure investment decisions. Construction management and economics, 22 (4), 373–383.10.1080/01446190310001649010
  • Garvin, M.J. and Ford, D.N., 2012. Real options in infrastructure projects: theory, practice and prospects. Engineering project organization journal, 2 (1–2), 97–108.10.1080/21573727.2011.632096
  • Hemming, R., 2006. Public-private partnerships, government guarantees, and fiscal risk. Washington, DC: International Monetary Fund.
  • Ho, S.P. and Liu, L.Y., 2002. An option pricing-based model for evaluating the financial viability of privatized infrastructure projects. Construction management and economics, 20 (2), 143–156.10.1080/01446190110110533
  • Huang, Y.L. and Chou, S.P., 2006. Valuation of the minimum revenue guarantee and the option to abandon in BOT infrastructure projects. Construction management and economics, 24 (4), 379–389.10.1080/01446190500434997
  • Hull, J.C. 2012. Options, futures, and other derivatives. 8th ed. Upper Saddle River: Prentice Hall.
  • Iranian statute. 1987. Law on construction and development of roads and transportation infrastructuresprojects. Availabe from: http://www.ghavanin.net/AIPLaw/lawview.do?reqCode=lawView&lawId=85585&isLaw=1
  • Jeong, J., et al., 2015. Model for evaluating the financial viability of the bot project for highway service areas in South Korea. Journal of management in engineering, 32 (2), 04015036. doi:10.1061/(ASCE)ME.1943-5479.0000396.
  • Klir, G.J. and Yuan, B., 1995. Fuzzy sets and fuzzy logic : theory and applications. Upper Saddle River, NJ: Prentice Hall PTR.
  • Klir, G.J., Clair, U.St, and Yuan, B., 1997. Fuzzy set theory: foundations and applications. Upper Saddle River, NJ: Prentice Hall PTR.
  • Kodukula, P. and Papudesu, C., 2006. Project valuation using real options: A practitioner’s guide. Fort Lauderdale, FL: J. Ross.
  • Kumaraswamy, M.M. and Morris, D.A., 2002. Build-operate-transfer-type procurement in asian megaprojects. Journal of construction engineering and management, 128 (2), 93–102.10.1061/(ASCE)0733-9364(2002)128:2(93)
  • Lander, D.M. and Pinches, G.E., 1998. Challenges to the practical implementation of modelling and valuing real options. The quarterly review of economics and finance, 38, 537–567.10.1016/S1062-9769(99)80089-1
  • Lewis, C.M. and Mody, A. 1998. Contingent liabilities for infrastructure projects; implementing a risk management framework for governments ( Public Policy for the Private Sector Note No 148). Washington, DC: World Bank.
  • Li, D., et al., 2016. Assessing investment value of privately-owned public rental housing projects with multiple options. Habitat international, 53, 8–17.10.1016/j.habitatint.2015.10.018
  • Liu, J. and Cheah, C.Y.J., 2009. Real option application in PPP/PFI project negotiation. Construction management and economics, 27 (4), 331–342.10.1080/01446190902807071
  • Liu, J., Yu, X., and Cheah, C., 2014. Evaluation of restrictive competition in PPP projects using real option approach. International journal of project management, 32 (3), 473–481.10.1016/j.ijproman.2013.07.007
  • Martins, J., Marques, R., and Cruz, C., 2014. Real options in infrastructure: revisiting the literature. Journal of infrastructure systems, 21 (1), 04014026. doi:10.1061/(ASCE)IS.1943-555X.0000188.
  • Moller, B. and Beer, M., 2004. Fuzzy randomness – uncertainty in civil engineering and computational mechanics. Berlin: Springer.
  • Mun, J., 2002. Real options analysis. Hoboken, NJ: John Wiley & Sons.
  • Myers, S.C., 1984. Financial theory and financial strategy. Interfaces, 14, 126–137.10.1287/inte.14.1.126
  • Ng, S.T., et al., 2007. A simulation model for optimizing the concession period of public–private partnerships schemes. International journal of project management, 25, 791–798.10.1016/j.ijproman.2007.05.004
  • Pedrycz, W. and Gomide, F., 1998. An introduction to fuzzy sets: analysis and design. Cambridge, MA: MIT Press.
  • Pellegrino, R., Vajdic, N., and Carbonara, N., 2013. Real option theory for risk mitigation in transport PPPs. Built environment project and asset management, 3 (2), 199–213.10.1108/BEPAM-05-2012-0027
  • Qiu, L.D. and Wang, S., 2011. BOT projects: incentives and efficiency. Journal of development economics, 94 (1), 127–138.10.1016/j.jdeveco.2009.11.008
  • Reinschmidt, K. and Trejo, D., 2006. Economic value of building faster. Journal of construction engineering and management, 132 (7), 759–766.10.1061/(ASCE)0733-9364(2006)132:7(759)
  • Shan, L., Garvin, M.J., and Kumar, R., 2010. Collar options to manage revenue risks in real toll public-private partnership transportation projects. Construction management and economics, 28 (10), 1057–1069.10.1080/01446193.2010.506645
  • Sun, Y. and Zhang, L., 2015. Balancing public and private stakeholder interests in BOT concessions: minimum revenue guarantee and royalty scheme applied to a water treatment project in China. Journal of construction engineering and management, 141 (2), 04014070.10.1061/(ASCE)CO.1943-7862.0000930
  • Tiong, R., Yeo, K.T., and McCarthy, S.C., 1992. Critical success factors in winning BOT contracts. Journal of construction engineering and management, 118, 217–228.10.1061/(ASCE)0733-9364(1992)118:2(217)
  • Vassallo, J.M., 2006. Traffic risk mitigation in highway concession projects. Journal of transport economics and policy, 40 (3), 359–381.
  • Vassallo, J.M. and Gallego, J., 2005. Risk sharing in the new public works concession law in Spain. Transportation research record: journal of the transportation research board, 1932, 1–8.10.3141/1932-01
  • Vassallo, J. and Soliño, A., 2006. Minimum income guarantee in transportation infrastructure concessions in Chile. Transportation research record: journal of the transportation research board, 1960, 15–22.10.3141/1960-03
  • Wibowo, A., 2004. Valuing guarantees in a BOT infrastructure project. Engineering, construction and architectural management, 11 (6), 395–403.10.1108/09699980410571543
  • Ye, S. and Tiong, R.K.L., 2000. Government support and risk-return trade-off in China’s BOT power projects. Journal of engineering, construction and architectural management, 7 (4), 412–422.
  • Ye, S. and Tiong, R.L.K., 2003. The effect of concession period design on completion risk management of BOT projects. Construction management and economics, 21, 471–482.10.1080/0144619032000073488
  • Zadeh, L.A., 1965. Fuzzy sets. Information and control, 8, 338–353.10.1016/S0019-9958(65)90241-X
  • Zadeh, L.A., 1975. The concept of a linguistic variable and its application to approximate reasoning—I. Information sciences, 8 (3), 199–249.10.1016/0020-0255(75)90036-5
  • Zhang, X., 2005. Critical success factors for public-private partnerships in infrastructure development. Journal of construction engineering and management, 131, 3–14.10.1061/(ASCE)0733-9364(2005)131:1(3)
  • Zhao, T. and Tseng, C., 2003. Valuing flexibility in infrastructure expansion. Journal of infrastructure systems, 9 (3), 89–97.10.1061/(ASCE)1076-0342(2003)9:3(89)

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.