Host: Eastern Asia Society for Transportation Studies
Pages 43
Charging for the use of infrastructure facilities such as toll roads consequently prices out potential users whose willingness-to-pay is exceeded by the toll fees that are charged. This means that economic gains, such as travel time and vehicle operating cost savings, may not be realized for those who have been priced-out. The reduction in the number of users also affects the cost-recovery aspect which is part of the project's financial viability, from the private sector viewpoint. A decision framework is proposed in this paper, which showed that, from a total-project standpoint, a PPP arrangement was not viable for a proposed Calamba-Los Banos bypass road project. While only a test application, this demonstrated that a joint analysis of economic viability of the project and financial viability for the private proponent is needed to determine if PPP arrangements are suitable within Philippine conditions.
