Journal of Construction Management, JSCE
Online ISSN : 1884-8311
ISSN-L : 1884-8311
The Impacts of Deposit and Subsidy Policy for Infrastructure PFI projects
Masamitsu ONISHILei SHIKiyoshi KOBAYASHI
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Keywords: PFI
JOURNAL FREE ACCESS

2005 Volume 12 Pages 149-158

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Abstract

In this paper, we analyze the economic benefits of the deposit and subsidiary payment policy for infrastructure PFI (Private Finance Initiative) projects. One of the substantial charactersitics of infrastructure PFI projects is existence of externatiliy. SPC (Special Purpose Company) is interested in only their own cashflow. With considerable externality, a socially effcient project can be liquidated by them. In this case, deposit and compensation policy implemented by the government play a role in making an efficient project continue. Under the stochastic value of externality of a project, the policy which is a combination of deposit and subsidiary payment can improve efficiency of the project.

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© by Japan Society of Civil Engineers
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