Assessment of profitability and financing of the new section of the PPP D4 highway

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27350%2F23%3A10253585" target="_blank" >RIV/61989100:27350/23:10253585 - isvavai.cz</a>

Výsledek na webu

<a href="https://managerconf.com/EMB-Conference-2023.pdf" target="_blank" >https://managerconf.com/EMB-Conference-2023.pdf</a>

DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

Assessment of profitability and financing of the new section of the PPP D4 highway

Popis výsledku v původním jazyce

Research background: The intention of the EC is the economic sustainability of the projects. The Czech Republic does not track the total amount of road transport losses, therefore we do not even know its proportional part for each project, so we cannot evaluate the economic sustainability of projects in a relevant way.Purpose of the article: Assessment of the profitability of the PPPD4 project. Addition of unpublished data (IRR, FV, annual installment amount). Calculation of total road transport losses in the Czech Republic.Methods: Determination of CF value by iterating between baseline CF and NPV. Determining the discount also by iteration. Calculating ROI. Model calculation of PPPD4 revenue with high traffic density of the D4 motorway and toll prices in Spain.Findings &amp; Value added: Price conversion from NPV to FV, calculation of the annual installment that The Czech Republic will pay for PPPD4. The calculations performed revealed an IRR value of 5.35%. The ROI has become negative, which leads to the conclusion that the PPP project is not profitable as an investment. If PPPD4 were an unsubsidized commercial project, the toll prices would have to be 2.5 times more expensive than the toll prices in Spain for the revenues to equal the costs. The originality of this article lies in the inclusion of a proportional part of the target costs associated with transport in the calculation of the profitability of the PPPD4 project and thereby making the calculation of the efficiency of the investment more precise.

Název v anglickém jazyce

Assessment of profitability and financing of the new section of the PPP D4 highway

Popis výsledku anglicky

Research background: The intention of the EC is the economic sustainability of the projects. The Czech Republic does not track the total amount of road transport losses, therefore we do not even know its proportional part for each project, so we cannot evaluate the economic sustainability of projects in a relevant way.Purpose of the article: Assessment of the profitability of the PPPD4 project. Addition of unpublished data (IRR, FV, annual installment amount). Calculation of total road transport losses in the Czech Republic.Methods: Determination of CF value by iterating between baseline CF and NPV. Determining the discount also by iteration. Calculating ROI. Model calculation of PPPD4 revenue with high traffic density of the D4 motorway and toll prices in Spain.Findings &amp; Value added: Price conversion from NPV to FV, calculation of the annual installment that The Czech Republic will pay for PPPD4. The calculations performed revealed an IRR value of 5.35%. The ROI has become negative, which leads to the conclusion that the PPP project is not profitable as an investment. If PPPD4 were an unsubsidized commercial project, the toll prices would have to be 2.5 times more expensive than the toll prices in Spain for the revenues to equal the costs. The originality of this article lies in the inclusion of a proportional part of the target costs associated with transport in the calculation of the profitability of the PPPD4 project and thereby making the calculation of the efficiency of the investment more precise.

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

50200 - Economics and Business

Projekt

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Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2023

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

Economics, Management &amp; Business 2023 : Contemporary Issues, Insights and New Challenges : VIII. international scientific conference : Spa Nový Smokovec – Congress Centre, High Tatras, the Slovak Republic, 28 – 29 September 2023

ISBN

978-80-555-3215-8

ISSN

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e-ISSN

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Počet stran výsledku

10

Strana od-do

82-91

Název nakladatele

Presov University Press

Místo vydání

Prešov

Místo konání akce

Vysoké Tatry

Datum konání akce

28. 9. 2023

Typ akce podle státní příslušnosti

EUR - Evropská akce

Kód UT WoS článku

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