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on Project, Program and Portfolio Management |
| By: | Marco Buso (Department of Economics and Finance, Catholic University of Sacred Heart, Milan and Interuniversity Centre for Public Economics (CRIEP)); Michele Moretto (DSEA, University of Padova); Dimitrios Zormpas (Department of Mathematics, University of Bologna) |
| Abstract: | We study the optimal design of Public-Private Partnerships (PPPs) when there is unobservable action on the private party’s side. We show that if the private party does not have negotiating power over the project’s surplus, no inefficient delays are attributable to the moral hazard issue. However, if the private party has negotiating power, the first-best timing is not guaranteed. This time discrepancy is shown to be costly in terms of overall project efficiency. The explicit consideration of the private party’s negotiating power can explain empirical evidence showing that private parties in PPPs reap excess returns. |
| Keywords: | public projects, public-private partnerships, moral hazard, real options, investment timing |
| JEL: | D81 D82 D86 H54 |
| Date: | 2020–02 |
| URL: | http://d.repec.org/n?u=RePEc:pad:wpaper:0246&r=all |
| By: | N. Packham |
| Abstract: | Recently, a number of structured funds have emerged as public-private partnerships with the intent of promoting investment in renewable energy in emerging markets. These funds seek to attract institutional investors by tranching the asset pool and issuing senior notes with a high credit quality. Financing of renewable energy (RE) projects is achieved via two channels: small RE projects are financed indirectly through local banks that draw loans from the fund's assets, whereas large RE projects are directly financed from the fund. In a bottom-up Gaussian copula framework, we examine the diversification properties and RE exposure of the senior tranche. To this end, we introduce the LH++ model, which combines a homogeneous infinitely granular loan portfolio with a finite number of large loans. Using expected tranche percentage notional (which takes a similar role as the default probability of a loan), tranche prices and tranche sensitivities in RE loans, we analyse the risk profile of the senior tranche. We show how the mix of indirect and direct RE investments in the asset pool affects the sensitivity of the senior tranche to RE investments and how to balance a desired sensitivity with a target credit quality and target tranche size. |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2001.11891&r=all |
| By: | Thomas Coen; Sarah M. Hughes; Matthew Ribar; William Valletta; Kristen Velyvis |
| Abstract: | Mathematica is conducting an impact evaluation of the Millennium Challenge Corporation’s Irrigation and Water Resource Management Project, an infrastructure and land tenure intervention carried out in Senegal from 2011-2015 in the Senegal River Valley. |
| Keywords: | Agriculture, Irrigation, Pre-post, Propensity score matching, lane tenure security, resource management |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:d61e6ded74a24d40a2121bd8051f88b2&r=all |
| By: | Ira Nichols-Barrer; Nicholas Ingwersen; Camila Fernandez; Elena Moroz; Matt Sloan |
| Abstract: | This interim report describes a preliminary set of evaluation findings on the school rehabilitation activity and the training activity for teachers and school directors. |
| Keywords: | Republic of Georgia, School infrastructure rehabilitation, STEM, teacher training, school director training |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:0ba19e2b66244ade9c38ff0ab580a417&r=all |