In recent years, private sectors are encouraged to take an active part in franchising of urban infrastructure
investments and operations, which promotes the rapid development of public-private partnership (PPP)
in infrastructure and public service supply. Value for money (VFM) assessment has been officially proposed to
provide a reference for selection of projects planning to adopt PPP. Based on the bottlenecks of VFM application
in China and the uncertainties for urban infrastructure PPP projects, a discounted cash flow (DCF) model is
established for VFM of infrastructure PPP projects. Then, a Monte Carlo simulation model is established on the
basis of uncertainty factors for VFM. Through the analysis of Huai’an trams PPP project, coping strategies of
uncertainties for VFM are put forward. Findings of the research may propel the establishment of a complete VFM
evaluation system for PPP projects. Key instructional functions of VFM during the process of decision-making
can be brought into full play and PPP may develop orderly.
LIANG Qingxue (梁晴雪), HU Hao* (胡昊)
. Uncertainty Analysis of Value for Money Assessment for Public-Private Partnership Projects[J]. Journal of Shanghai Jiaotong University(Science), 2017
, 22(6)
: 672
-681
.
DOI: 10.1007/s12204-017-1889-2
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