The case for PPPs in urban transportation
There is a strong case for public-private-partnerships in urban transportation projects, writes Andrew Chan Yik Hong, a PricewaterhouseCoopers executive director in corporate finance leading its infrastructure, government and utilities practices in Malaysia, Thailand, Vietnam, Cambodia and Laos.
Urban transportation projects generate multiple benefits, ranging from the private to the public good. The beneficiaries for each category are also different. There is a strong case for a public-private-partnership (PPP) in capturing the value of urban transportation projects that is relevant to all beneficiaries. Public institutions need to develop innovative instruments that capture value from indirect and proximity beneficiaries, so that urban transportation projects will not excessively rely on real-estate development for financing.