Hybrid Dynamic Pricing Model for Transport PPP Projects during the Residual Concession Period

Zhang, Yajing, Yuan, Jingfeng, Zhao, Jianfeng, Cheng, Li and Li, Qiming (2022) Hybrid Dynamic Pricing Model for Transport PPP Projects during the Residual Concession Period. Journal of Construction Engineering and Management, 148 (2). 04021200. ISSN 0733-9364

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Official URL: https://doi.org/10.1061/(asce)co.1943-7862.0002218


Public–Private-Partnerships (PPPs) have been adopted worldwide to deliver infrastructure projects and/or provide public services. Having a reasonable concession price (operation and transfer) in place is pivotal for sustaining a win-win relationship between governments and private sectors. However, historical data have shown that the concession price of PPPs when transfer is less than satisfactory due to the changing attribute of pricing parameters, causing substantial loss of residual value (RV). Nevertheless, a rational and systematic pricing model for PPPs, especially transport PPPs, is not yet available. To this end, a hybrid dynamic pricing model for transport PPPs during the residual concession period underpinned by the case-based reasoning technique is proposed. Furthermore, using a case study of the Western Harbor Crossing tunnel in Hong Kong, the proposed model is validated to be able to account for the dynamic pricing parameters and calculate a reasonable and accurate residual concession price. The contributions of this study are twofold: (1) it highlights that a reasonable concession price beyond the operation period is significant in maintaining RV; and (2) it provides a hybrid dynamic pricing model for governments and private sectors to calibrate the current less-than-satisfactory residual concession price.

Item Type: Article
Additional Information: Funding information: Scientific Research Foundation of Nanjing Institute of Technology (YKJ201986) and National Natural Science Foundation of China (NSFC 71671042)
Uncontrolled Keywords: Case-based reasoning, Public–Private-Partnerships (PPPs), Residual concession price, Residual value, Transport infrastructure, Building and Construction, Civil and Structural Engineering, Industrial relations, Strategy and Management
Subjects: H200 Civil Engineering
H300 Mechanical Engineering
Department: Faculties > Engineering and Environment > Architecture and Built Environment
Depositing User: Rachel Branson
Date Deposited: 04 Jan 2022 11:14
Last Modified: 04 Jan 2022 11:15
URI: http://nrl.northumbria.ac.uk/id/eprint/48061

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