EARLY TERMINATION COMPENSATION UNDER DEMAND UNCERTAINTY IN PUBLIC-PRIVATE PARTNERSHIP PROJECTS

Jinbo Song · Yanzhu Yu · Lulu Jin · Zhuo Feng

27 citations0/0 files storedInternational Journal of Strategic Property Management

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Public-Private Partnership Projects Capital Investment and Risk Analysis Transport and Economic Policies

Abstract

In the early termination of public-private partnership (PPP) projects, compensation is considered a core issue that greatly affects the interests of the government and the private sector. To address the early termination that is frequently caused by government default or voluntary buyback, this paper proposes an ex-ante compensation mechanism using the cumulative probability that a given demand could be realized to determine early termination compensation under demand uncertainty. By splitting the compensation into two parts, the base compensation could be the minimum compensation for the private sector, while the additional compensation is considered a reasonable allocation of future booming demand. The predetermined compensation criterion ensures a smooth transfer of the early terminated project, which not only benefits the government from being overcharged, but also enables the private sector to gain a reasonable compensation for the remaining concession period.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 27 citations exist upstream.

References

1996Real Options: Managerial Flexibility and Strategy in Resource Allocation 2004Forecasting seasonals and trends by exponentially weighted moving averages 2004The allocation of risk in PPP/PFI construction projects in the UK 2006Risk allocation in the private provision of public infrastructure 2009Preferred risk allocation in China’s public–private partnership (PPP) projects 2010Developing a risk assessment model for PPP projects in China — A fuzzy synthetic evaluation approach 2012Public private partnership projects in Singapore: Factors, critical risks and preferred risk allocation from the perspective of contractors 2006A game theory approach for the allocation of risks in transport public private partnerships

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.