Research On Investment Decision Method For Transportation System Based On PPP Model

In Afghanistan,methods of traditional procurement have repeatedly failed to deliver projects on time and there are serious concerns about cost,quality and sustainability.Therefore,Public Private Partnership(PPP)has been considered as an alternative and a vital tool for attracting investment and enabling the government to finance government projects.This research sets out to review key issues of PPP in transportation,especially in road transport of Afghanistan and the application of a decision model for investment in road project based on PPP.It has been discussed how PPP can play an important role in Afghanistan's highway sector and help Afghanistan's highways transition to revenue generating and self sustainable assets.The longest highway of Afghanistan,Kabul-Herat has been considered for this study to assess the feasibility of PPP in mentioned network.For application of new model,survey-rehabilitate-operate-transfer(SROT),the case of a Chinese expressway(Shen-Da)was studied for applying experience of China in PPP.Required phases like feasibility study,tendering process,construction phase,operation phase,transfer phase and risk allocation and management,studied carefully for Shen-Da and possible Kabul-Herat expressway.Although,both the old and new Shen-Da expressway were completed successfully,problems like automatic selection of contractor for construction of old and new expressway,construction cost overruns,public debt in the case of project financing,load on end users because of increasing toll price and number of tolls and implications of new techniques causing an increase in total cost,have emerged in the implementation of this project.This paper recommends that further research can focus on deepening the analysis of Traffic and Revenue(T&R)and also the impact of PPP road projects on economic growth in Afghanistan.