Valuing Governmental Support in Road PPPs

  1. Carlos Contreras 1
  2. Julio Angulo 2
  1. 1 Universidad Complutense de Madrid
    info

    Universidad Complutense de Madrid

    Madrid, España

    ROR 02p0gd045

  2. 2 International Center for Infrastructure Solutions
Revista:
Hacienda Pública Española / Review of Public Economics

ISSN: 0210-1173

Año de publicación: 2017

Número: 223

Páginas: 37-66

Tipo: Artículo

DOI: 10.7866/HPE-RPE.17.4.2 DIALNET GOOGLE SCHOLAR lock_openAcceso abierto editor

Otras publicaciones en: Hacienda Pública Española / Review of Public Economics

Objetivos de desarrollo sostenible

Resumen

Every year more transport infrastructures are built under long-term contracts with private partners. When using public-private partnerships (PPPs), the amounts invested in the construction of such infrastructures may not be counted as public debt if certain conditions are met. But in PPPs, host governments often make payments and provide financial support, through various channels, generating direct and/or contingent financial liabilities. By using an option pricing-based model, this paper offers a method to quantify those liabilities for various forms of road PPPs. In particular, we focus on valuing debt guarantees, equity guarantees, and minimum revenue guarantees. Our method takes into account that in road infrastructures, the governmental payments are typically a function of the evolution of both inflation and traffic. We use an illustrative case for showing the magnitude of the contingent debt implied in such guarantees.

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Fuente de los datos: Dialnet