PPPs in road renovation and maintenance: a case study of the East Coast Road project

Thillai Rajan A. (Department of Management Studies, Indian Institute of Technology, Chennai, India)
R. Siddharth (Bloomberg LP, New York, USA)
S.P. Mukund (Bloomberg LP, New York, USA)

Journal of Financial Management of Property and Construction

ISSN: 1366-4387

Publication date: 20 April 2010

Abstract

Purpose

Public‐private partnerships (PPPs) are being frequently used today to private sector investment in road projects. Most of the road PPP projects are either for new roads or for those that involve significant expansion of existing capacity. There are limited instances of PPPs for renovating and maintenance of existing roads. The purpose of this paper is to highlight the applicability of using PPPs for road renovation and maintenance projects.

Design/methodology/approach

This paper uses a case‐study approach since it is an appropriate strategy to investigate a phenomenon within its real life context. The East Coast Road project was chosen for the study because it was the first project in India to use PPP for road renovation and maintenance, and being the first project of its kind, the case was of general public interest.

Findings

The paper indicates that risk levels in Rehabilitate, Improve, Maintain, Operate and Transfer (RIMOT) projects are lower than Greenfield BOT projects. Even in areas like renovation and maintenance, PPP structures can bring many advantages over traditional procurement.

Research limitations/implications

This paper has the limitations attributable to single case studies. There is a need to extend this paper to include more such case studies to evaluate their relevance for infrastructure development, particularly in emerging countries.

Practical implications

PPP structures can be useful for renovating and maintaining the existing roads. Modalities such as the RIMOT framework can have greater potential than the conventional BOT structures. Private investments in infrastructure can also be through a corporate finance structure.

Originality/value

This paper describes and analyzes the experience of India's first PPP for renovation and maintenance. The findings of this paper would have value for policy makers who are interested in attracting private sector finance and expertise in infrastructure and more specifically in roads.

Keywords

Citation

Rajan A., T., Siddharth, R. and Mukund, S. (2010), "PPPs in road renovation and maintenance: a case study of the East Coast Road project", Journal of Financial Management of Property and Construction, Vol. 15 No. 1, pp. 21-40. https://doi.org/10.1108/13664381011027962

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Publisher

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Emerald Group Publishing Limited

Copyright © 2010, Emerald Group Publishing Limited

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