Privately Financed Infrastructure (PFI) projects are characterized by huge and irreversible investments and are faced with various risks. Project performance risks, such as project completion time and costs, affect the project value significantly, particularly in project development phase. This is because a major part of the project investments are made during this phase. Due to high uncertainties in managing the project performance risks


1 Introduction
1.1 Motivation
1.2 Project Performance Risks and Optimal Capital Structure for PFI Projects
1.3 Objectives of Research
1.4 Original Contributions
1.5 Organization of the Dissertation
2 PFI Projects: An Overview
2.1 Participants in PFI Projects
2.2 Project Financing: Debt, Equity and Capital Structure
2.3 Uncertainties and Risk Allocation Strategies for PFI Projects
2.4 Project Management of PFI Projects
2.5 The Need for an Integrated Model
2.6 Major Assumptions in the Research
3 Literature Review
3.1 Privately Financed Infrastructure Processes
3.2 Project and Infrastructure Financing
3.3 Risk Management Strategies and Government Support
3.4 Project Valuation Methods, Real Options and Capital Structure Theory
4 Modeling Dynamics of PFI Project Performance Risks
4.1 PFI Project Risks and Risk Management
4.1.1 Project performance risk management
4.1.2 The need for a project performance risk based capital structure model
4.2 Model Dynamics of Project Performance Risks
4.2.1 Notation
4.2.2 Time-at-completion ˜ T(t) and cost-at-completion ˜ C(t)
4.2.3 Process for project duration evolution
4.2.4 Process for project cost evolution
4.2.5 Comparison with CPM and PERT models
4.2.6 Interdependency of the uncertainties
4.2.7 Merits of the proposed project performance model
5 A Generic Model for Optimal Capital Structure
5.1 Performance-Based Dynamic Capital Structure
5.1.1 Model assumptions and discussions
5.1.2 Notations
5.2 Modeling Optimal Capital Structure
5.3 Numerical Results
5.4 Conclusion
6 Optimal Capital Structure Model with Active Project Performance Management
6.1 Project Time-Cost Trade off Decisions
6.2 Dynamic Activity Crashing
6.3 Capital Structure using Dynamic Project Crashing
6.4 Solution Procedure for Solving (P2)
6.5 Numerical Example
6.6 Limitations of Dynamic Crashing
6.7 Conclusion
7 Optimal Capital Structure with Government Support Option
7.1 Introduction to Government Support
7.2 Forms of the Government Support
7.2.1 Loans and guarantees
7.2.2 Equity participation
7.2.3 Subsidies
7.2.4 Tax and customs benefits
7.2.5 Protection from competition
7.2.6 Other supports
7.3 Effects of Government Support
7.4 Dynamic Government Support
7.4.1 Optimal capital structure with dynamic government support
7.4.2 Basic assumptions
7.4.3 Notation
7.4.4 Modeling optimal capital structure
7.4.5 Case 1: Government support as an explicit rescue mechanismatbankruptcy
7.4.6 Case2:Government support is an option
7.5 Numerical Tests
7.6 Conclusion
8 Summary and Future Directions

Author: Sundararajan, Satheesh Kumar

Source: University of Maryland

Download URL 2: Visit Now

Leave a Comment