Structure finance for hybrid infrastructure models : the application of project finance into public-private partnerships for the construction and operation of infrastructure

This thesis studies the application of project finance as the most efficient financing method for the construction and operation of infrastructure projects such as motorways, airports, power plants, pipelines, wastewater/sewage plants, dams, landline or cellular networks, and natural resources mines. These are large-scale, complex, and capital-intensive engineering systems, which until recently, were developed and operated either by the public or the private sector. The latest model for the construction and operation of an infrastructure project is Public-Private Partnerships ("PPP"), a hybrid structure that is becoming widespread. PPP employ private companies to construct and then operate infrastructure assets, which historically have been financed with public resources and operated on a not-for-profit basis. Through PPP agreements such as concessions, governments shift construction and operating risks to the private sector, which is usually more efficient in building and then running the assets. Project finance is a large and rapidly growing subfield of finance, yet one where academic theory and research distantly lag current practice. Project finance relies on private capital sources for financing the PPP infrastructure project, as opposed to direct government financing or corporate financing.

Department dc:contributor.department

Massachusetts Institute of Technology. Technology and Policy Program.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2006

Author dc:creator

• Patramanis, Theodoros

Advisor dc:contributor.advisor

• Fred Moavenzadeh.

• Technology and Policy Program.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/34529

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/34529