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How to make PPP projects feasible

posted 9 Oct 2016, 10:54 by harp guy
India needs about $ 2.7 trillion in infrastructure investment over the next 10 years. Clearly, the government does not have that kind of money. The involvement of the private sector and capital markets is, therefore, essential if India is to meet its infrastructure needs. 

Unfortunately, the experience of the private sector in infrastructure projects in India has been less than favorable. As a result, hundreds of projects go untendered. India's tendering and financing of infrastructure is still based on archaic models which magnify project risk for both the government and the private sector. 

This paper shows how Real Options, a technique developed in modern Finance theory can be used effectively for PPP projects. 
harp guy,
9 Oct 2016, 10:54