콘텐츠 바로가기
로그인
컨텐츠
  • HOME
  • SEARCH
PLUS Text Size MINUS RESET
INSTAGRAM FACEBOOK YOUTUBE

Category Open

Resources

tutorial

Collection of research papers and materials on development issues

home

Resources
Industry and Technology Government and Law
Public Administration

Print

A comparative research on the variations of PPP contracts : Availability payment PPP vs. concession PPP

Related Document
Frame of Image aculty/working.jsp The Social Science Network Electronic Paper Collection: http://ssrn.com/abstract=3561394 * We are grateful to the KDI School of Public Policy and Management for providing financial support.
A Comparative Research on the Variations of PPP Contracts: Availability Payment PPP vs. Concession PPP*
First draft: February 28, 2020
Soojin Park KEPCO International Nuclear Graduate School Ulsan, Korea
Min Hwang George Washington University Washington, DC, USA
Man Cho** KDI School of Public Policy and Management Sejong-si, Korea
* We are grateful to our research assistants, Ms. So Min Bae and Ms. Yujin Chung, for their excellent job in collecting the micro data and formatting them to be usable. ** Corresponding author
1
A Comparative Research on the Two Types of PPP Contracts: Availability Payment PPP vs. Concession PPP
ABSTRACT It is fair to say that the research on Public Private Partnership (PPP), in particular, on its risk-return profiles, is rare, despite the fact that this form of infrastructure financing has been on the rise during the last two decades in a diverse set of countries. This study aims to fill that gap by offering a comparative study on the two frequently-employed PPP contracts in Korea and other countries - Availability Payment (AP) PPP contracts vs. Concession (C) PPP contracts - with respect to ex post (or realized during the operational stage) risk-adjusted return characteristics. To that end, we compiled an unique project-level data set that co


Full Text
Title A comparative research on the variations of PPP contracts
Similar Titles
Sub Title

Availability payment PPP vs. concession PPP

Material Type Report
Author(English)

Park, Soojin; Hwang, Min; Cho, Man

Publisher

[Sejong] : KDI School of Public Policy and Management

Date 2020-02
Series Title; No KDI School Working Paper Series / 20-06
Pages 25
Subject Country South Korea(Asia and Pacific)
Language English
File Type Documents
Original Format pdf
Subject Industry and Technology
Government and Law < Public Administration
Holding KDI School of Public Policy and Management
License

Abstract

It is fair to say that the research on Public-Private Partnership (PPP), in particular, on its risk-return profiles, is rare, despite the fact that this form of infrastructure financing has been on the rise during the last two decades in a diverse set of countries. This study aims to fill that gap by offering a comparative study on the two frequently-employed PPP contracts in Korea and other countries - Availability Payment (AP) PPP contracts vs. Concession (C) PPP contracts - with respect to ex-post (or realized during the operational stage) risk-adjusted return characteristics. To that end, we compiled a unique project-level data set that covers the performance indicators of those PPP projects initiated from 1995 to 2014 in Korea both at-contract as well as at-operation stages and applied a three-factor CAPM model to estimate the alpha and beta for those two types of PPP contracts. Our empirical results indicate that: ceteris paribus, AP-PPP entails a higher market-driven risk to the private partners; the systematic risk factors caused by the size and by the book-to-market-ratio have statistically significant effects on the ex-post returns; and, the ex-post excess returns are shown to be not significant, neither statistically nor economically. Based on our findings, we discuss the welfare implications of PPP contracts out of their systematic risk characteristics documented.