Nayyer, M I; Aravindan, M R and Annamalai, T R (2024) Impact of transparency law on the post-award development phase of toll and annuity PPPs. Built Environment Project and Asset Management, 14(1), pp. 22-37. ISSN 2044-124X
Abstract
Purpose: Involvement of lenders for PPP highway projects in India starts after the bid award. The post-award development phase of Toll and Annuity PPPs differ significantly in terms of potential risk assumed by lenders. This study aims to assess the impact of the transparency law on the post-award development phase of Toll and Annuity PPPs. Design/methodology/approach: A unique dataset of 469 PPP highway projects implemented in India was used to conduct this empirical study. An OLS regression model was developed to assess the impact of the transparency law on the post-award development phase. Findings: Enacting the transparency law increased the duration of the post-award development phase of Toll projects; however, its impact on Annuity projects was not significant. Moreover, Toll and Annuity projects with a longer post-award development phase had a shorter construction phase. The post-award development phase of the Toll projects was relatively more sensitive to technical, economic and location-specific variables than Annuity projects. Length of road stretch, duration of the concession period and individual income of end-users significantly impacted the duration of this phase of Toll projects. Practical implications: Transparency law can improve risk mitigation of Toll projects during the post-award development phase. Originality/value: The impact of transparency law on PPP projects has never been assessed. This study assesses its impact on the two forms of PPPs. It also highlights the determinants of this phase and how they differ for the two forms of PPPs.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | annuity; BOT; PPP; rti act; toll; transparency |
| Index terms: | transparency, India, construction phase, dataset, duration, risk mitigation, determinant, income, methodology, highway construction, annuity, empirical study, toll, concession period, regression model |
| Subjects: | economic analysis, project delivery, risk assessment, statistical analysis, transportation engineering, data management, project controls, financial risk, professional development, Geography, civil engineering, economics, research methods, contract structure |
| Topics: | Time Control, Digital Applications, Procurement, Risk Management, Engineering Principles, Information Management, Geographical Context, Project Management, Research Practice, Cost Management, Business Strategy |
| Descriptive scope: | 4 PCTA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here