Show simple item record

dc.contributor.advisorRichard de Neufville.en_US
dc.contributor.authorDuarte Pardo, Juan Pablo.en_US
dc.contributor.otherMassachusetts Institute of Technology. Institute for Data, Systems, and Society.en_US
dc.contributor.otherTechnology and Policy Program.en_US
dc.date.accessioned2019-09-16T18:17:09Z
dc.date.available2019-09-16T18:17:09Z
dc.date.copyright2019en_US
dc.date.issued2019en_US
dc.identifier.urihttps://hdl.handle.net/1721.1/122093
dc.descriptionThis electronic version was submitted by the student author. The certified thesis is available in the Institute Archives and Special Collections.en_US
dc.descriptionThesis: S.M. in Technology and Policy, Massachusetts Institute of Technology, School of Engineering, Institute for Data, Systems, and Society, 2019en_US
dc.descriptionCataloged from student-submitted PDF version of thesis.en_US
dc.descriptionIncludes bibliographical references (pages 105-112).en_US
dc.description.abstractAn approach to de-risking infrastructure projects and increasing their bankability is proposed, where flexible design is used to complement traditional Public-Private Partnerships (PPPs) under Project Finance schemes. By definition, forecasts of future project performance will 'always' be wrong in that actual future demand 10 years after the planning phase almost always differs from the forecasts. The potential divergence between predicted and actual demand becomes crucially important if the project's costs are to be recovered from the revenue stream it is supposed to generate. Whereas traditional financing schemes rely exclusively on contractual terms to reduce risks to lenders, an engineering-based framework to mitigate demand and credit risks is proposed as a complement to current approaches. This thesis presents in detail how the use of flexibility in engineering design could be implemented to de-risk PPPs and increase their bankability.en_US
dc.description.abstractA strategic planning process that recognizes the uncertainty surrounding future conditions and prepares to accommodate them at the lowest cost is the key to de-risk a project technically. This will provide an effective tool to manage demand risk and fully realize the potential of PPPs while scaling down the need for credit enhancements. Projects with lower value at risk and larger upside potential can maximize finance for development and consolidate much needed pipelines of infrastructure projects that close existing infrastructure gaps. To illustrate the proposed process, the de-risking effect of airline involvement in airport planning and design in the United States is analyzed in detail. Airport projects offer considerable scope for flexible design, as passenger buildings and many other airport facilities can easily be designed and implemented in modules.en_US
dc.description.abstractBy completely transferring demand and credit risks to airlines, the financing of airport developments in the United States has overall managed to avoid significant financial project risks. Important lessons can be learned from this interesting model to mitigate demand and credit risks in infrastructure investments.en_US
dc.description.statementofresponsibilityby Juan Pablo Duarte Pardo.en_US
dc.format.extent125 pagesen_US
dc.language.isoengen_US
dc.publisherMassachusetts Institute of Technologyen_US
dc.rightsMIT theses are protected by copyright. They may be viewed, downloaded, or printed from this source but further reproduction or distribution in any format is prohibited without written permission.en_US
dc.rights.urihttp://dspace.mit.edu/handle/1721.1/7582en_US
dc.subjectInstitute for Data, Systems, and Society.en_US
dc.subjectTechnology and Policy Program.en_US
dc.titleDe-risking project finance for infrastructure development through flexibility in engineering designen_US
dc.typeThesisen_US
dc.description.degreeS.M. in Technology and Policyen_US
dc.contributor.departmentMassachusetts Institute of Technology. Institute for Data, Systems, and Societyen_US
dc.contributor.departmentTechnology and Policy Programen_US
dc.identifier.oclc1117709825en_US
dc.description.collectionS.M.inTechnologyandPolicy Massachusetts Institute of Technology, School of Engineering, Institute for Data, Systems, and Societyen_US
dspace.imported2019-09-16T18:17:06Zen_US
mit.thesis.degreeMasteren_US
mit.thesis.departmentESDen_US
mit.thesis.departmentIDSSen_US


Files in this item

Thumbnail

This item appears in the following Collection(s)

Show simple item record