External Business Drivers of Concession Period in Transport PPPs: An Empircal Investigation

Abstract

Despite the abundance of papers on establishing the optimal concession period for Public Private Partnerships (PPP) from the public procurement perspective, the impact of external factors influencing the duration of the concession period of PPP projects is scarcely explored in the PPP literature. In this context, this research conducts a statistical analysis using multivariate regression analysis (MRA) and analysis of variance (ANOVA) to evaluate if a set of key factors may influence the duration of the concession period of a PPP transportation project. The outcomes of the model show that the area of the world wherein the project is developed and the regulatory framework of the country significantly impact the definition of the concession period. The proposed study paves the way for understanding the crucial levers influencing the duration of the concession period to increase the value associated with a PPP initiative