| Title |
Financial Analysis of Risk Reallocation in PPP Projects - Focusing on the Transactions between Private Investors in Koera - |
| Authors |
Chu, Chang Hwan ; Kwon, Byungki ; Lee, Hyun-soo ; Park, Moonseo |
| DOI |
http://dx.doi.org/10.6106/KJCEM.2018.19.2.025 |
| Keywords |
Public-Private Partnerships (PPPs) ; Discounted Cash flow (DCF) ; Risk Allocation |
| Abstract |
In recent times, private sector allocates the risk between private sector investors in terms of equity transaction and agreement transaction. The additional risk-allocation have made the cash flows of private sector investors fluctuated and some of the PPP projects delayed. Therefore, analyzing the impact of the risk reallocation between private sector investors on their cash flows is critical for encouraging the private sector participants. In this study, a model to evaluate the financial viability of PPP project is developed based on the discounted cash flow analysis. The model can analyze the variability by equity and agreement transaction by identifying key variables of equity transaction, influence factors of agreement transaction, and relationship between the transactions and investor's profitability. It is expected that the private sector can determine the investment decision for PPP projects when the risk reallocation is occurred. |