Toll Road PPPs: Identifying, Mitigating and Managing Traffic Risk
PPPs are often viewed as the ideal solution for governments balancing limited budgets and growing infrastructure demands.
Public-private partnerships (PPPs) are often viewed as the ideal solution for governments balancing limited budgets and growing infrastructure demands. However, as the failure of some high-profile toll-highway PPPs illustrates, implementing such projects is often not as straightforward as many governments envision. One of the most common factors contributing to these failures is traffic volumes that turn out to be significantly different from what was originally forecast. This risk of actual traffic being lower (or higher) than forecast, and the inaccuracy of traffic forecasts, is referred to as traffic risk.
The new PPIAF and Global Infrastructure Facility publication: Toll Road PPPs: Identifying, Mitigating and Managing Traffic Risk attempts to provide practical guidance with perspectives from the different parties that operate in a typical highway PPP including the perspectives of a grantor, a financier and a traffic forecaster.
Matt Bull, Head of Business and Financial Modelling, and Anita Mauchan, Director at Steer are co-authors of the book. Anita also spoke about the topic at the World Bank Group's webinar, 'Toll Road PPPs: identifying, mitigating and managing traffic risk”.
You can read the publication on the Global Infrastructure Facility website.
