Adaptive efficiency

, 187

African Development Bank (AfDB)

, 20

Airport PPP concession contract in developing economy

, 13–14

Albania

economic dimension in

, 65

legal dimension in

, 66–67

legal system and laws

, 90–91

organization dimension in

, 68–69

political dimension in

, 64

strengths and limitations

limitations

, 91

obstacles to PPP contract implementation

, 91

Albania case

, 215–218

Albanian infrastructure finance policy

, 215–216

inadequate legal system for enforcing laws

, 217

monitoring

, 218

organization capacity and capability

, 217–218

organization dimension

, 217

political dimension

, 216

Albania PPP Laws

, 97

Albania value dimension

, 106–107

Albanian capital

budget

, 218–219

improvements planning process

, 218–219

management and budgeting process

, 111–112

and project financing

, 218

projects monitoring

, 219

Albanian infrastructure finance policy

, 215–216

Albanian Laws Governing PPPs

, 73–75

Albanian Procurement and Contract Law

, 75

guiding principles

, 75

scope of Albanian PPP Law No. 125/2013

, 74–75

Albanian legal system

, 86–87

Albanian Ministry of Finance

, 137

Appellate Divisions of Supreme Court

, 87–88

Asian Development Bank (ADB)

, 20

Bond rating agencies in infrastructure debt financing

, 29–31

fitch rating agency

, 29

Moody’s investors rating agency

, 29–30

Standard and Poor’s Bond Rating Agency

, 30–31

Bounded rationality in PPP contracts

, 54–55

Bridge PPP design-build contract in mature economy

, 13

Budget constraints

, 144–151

Build-Operate-Transfer (BOT)

, 12, 76, 110, 196, 222

Build-Operate-Transfer Projects Bill (BOTPB)

, 76, 196

Build-Own-Operate (BOO)

, 12, 201

Build-Own-Operate-Transfer (BOOT)

, 12

Build-Transfer-Operate (BTO)

, 12

Capital budget

implementation

, 161–163

monitoring

, 174

proposal

, 162

revenue sources

, 136

Capital improvement plan (CIP)

, 4, 135, 155–161, 173–174, 199, 206

Capital improvements planning

capital management, and budgeting and PPPs

, 172–176

within capital management and budgeting processes

, 108–114

Capital infrastructure

, 6, 7

Capital management

and budget framework

, 152–172

and budget stages

, 151–152

and budgeting system

, 206–207

Capital market infrastructure debt financing

, 27–28

Capital project

closeout

, 176

monitoring, legal requirements, and closeout process

, 174

ongoing monitoring of financing

, 142–144

status and activities reporting

, 175–176

Capital Projects Fund

, 163

Capital Reserve Fund

, 163

City Courts

, 88

Civil law systems

, 214

Commercial banks

, 26

Commercial market private sector financing sources

, 24–26

commercial banks

, 26

development finance institutions

, 24–25

private equity financing

, 25–26

Commercial risk

, 33, 35

infrastructure demand shortfalls risk

, 35

Commercial unforeseen structural deficiency risk

, 35–36

Communication

public participation and disclosure

, 189–192

in transparency during PPP procurement process

, 189–192

Concession

, 13, 73

Concession Contract Refinancing

, 14

Concession PPPs

, 8

Concession Treatment Unit

, 217

Contingent liabilities

, 148–151

Contract negotiation, flexibility during capital project design in

, 185

Contractual arrangement

infrastructure delivery forms of

, 10–13

PPP forms of

, 13–15

PPP infrastructure financing and delivery forms

, 10–13

traditional infrastructure funding and delivery form of

, 10

Cooperative institutional frameworks

, 46

Cost–benefit analysis (CBA)

, 60–61, 137

Country institutional risk

, 33

County Court

, 88

Court of Appeals

, 87–89

Credit default swaps (CDS)

, 149–150

Cuomo Bridge Design-Build PPP form

, 45

Cure pipe Point Wind Farm

, 201

Cure Pipe Wind Farm contract

, 50–51

Cyber risk

, 33–34

Debt financing

, 28

Debt management policy

, 16–17

Decision Support documentation

, 198

Demand risk in strategies in PPP contract negotiation

, 167–168

Department of Environmental Conservation (DEC)

, 79

Design-Bid-Build (DBB)

, 3, 10

Design-Build (DB)

, 3–4, 10, 13, 45

project delivery method

, 80

Design-Build-Finance-Operate (DBFO)

, 11

Design-Build-Finance-Operate-Maintain (DBFOM)

, 11

Design-Build-Finance-Operate-Maintain-Transfer (DBFOM-Transfer)

, 11–12

Design-Build-Maintain (DBM)

, 11

Design-Build-Operate (DBO)

, 11

Design-Build-Operate-Maintain (DBOM)

, 11

Development finance institutions

, 24–25

Direct Lending

, 21

Direct subsidy bonds

, 18

District courts

, 88

Economic dimension

, 65–66

in Albania

, 65

in Mauritius

, 66

in New York State

, 65

in State of Indiana

, 65

Economic value dimension

, 106

Emerging Market Economies (EMEs)

, 135

Environmental risk in contract negotiation

, 168–169

European Bank for Reconstruction and Development (EBRD)

, 14, 24–25, 90

European Investment Bank (EIB)

, 25

European Monetary Union (EMU)

, 146

European Public Sector Accounting Standards (EPSAS)

, 146

European Union (EU)

, 144–145

Ex-ante financial performance measurement

, 184

Ex-post evaluation

, 184

Exchange-rate policy

, 16

Expressed risk allocation in PPP contracts

, 169

External balanced budget rules

, 146

Financial Intermediary Loans

, 21

Financial planning

, 173–174

Financial risk

, 33, 35

in PPP contract negotiation

, 165–167

Financial Risk Reduction Best Practice

, 201

Fitch rating agency

, 29

Fund balance

, 17

General obligation debt financing

, 18

Government Accountability Office (GAO)

, 198

Government capital infrastructure

, 4

Government debt

, 18–19

affordability

, 115–118

general obligation debt financing

, 18

lease or lease-purchase debt financing

, 18–19

revenue bond debt financing

, 18

special obligation debt financing

, 19

Government Finance Officers Association (GFOA)

, 174

Government role in minimizing capital project costs

, 187

Gross domestic product (GDP)

, 65

Hard operating budget constraints

, 144–146

Incomplete information in PPP contracts

, 53–54

Independent capital project financial analysis

, 181–182

Indiana

economic dimension in

, 65

legal dimension in

, 67–68

organization dimension in

, 69

political dimension in

, 64

value dimension

, 107–108

Indiana capital management and budgeting process

, 113–114

Indiana Department of Transportation (INDOT)

, 213

Indiana Finance Authority (IFA)

, 69, 82–83, 213

Indiana Laws governing PPPs

, 82–85

guiding principles

, 84

Indiana definition of PPP

, 84

Indiana PPP Law

, 83, 98

Indiana PPP procurement and contracting procedures

, 85

scope of Indiana BOT Law

, 83–84

Indiana Legal System

, 89

Indiana strengths and limitations of laws

, 94–95

selection of Private PartyChallenges to Indiana PPP statutes

, 95

selection of Private PartyIndiana legal system and laws

, 94–95

Indiana Toll Road

, 67, 69, 95

Indirect support funding policies

, 21–22

land policy

, 21–22

tax expenditure policy

, 21

Indirect support funding sources

, 22

land

, 22

tax expenditures

, 22

Infrastructure delivery forms of contractual arrangement

, 10–13

Infrastructure finance analytical tool

for evaluating options

, 138–144

infrastructure project selection process

, 141–142

ongoing monitoring of capital projects financing

, 142–144

VFM

, 138–141

Infrastructure finance at national and subnational levels

, 136–138

Infrastructure finance direct support funding sources

, 17–19

government debt

, 18–19

tax revenue and fund balance

, 17

Infrastructure finance direct support policies

, 16–17

debt management policy

, 16–17

exchange-rate policy

, 16

tax revenue policy

, 16

Infrastructure finance indirect support funding sources

, 21–22

indirect support funding policies

, 21–22

indirect support funding sources

, 22

Infrastructure finance policy

, 15–21, 205

budget constraints

, 144–151

economic dimension

, 65–66

and funding sources

, 15

as guide to capital management and budgeting

, 31–33

and implementation best practices

, 195–197

implementation issues and constraints

, 144–151

in infrastructure delivery

, 7–8

legal dimension

, 66–68

multilateral development banks

, 20

organization dimension

, 68–70

political dimension

, 63–64

quasi-governmental Export Credit Agency

, 21

sovereign wealth

, 20

Infrastructure finance policy design and implementation

, 26–28, 41, 51–53, 179, 215–218

as basis for efficient and effective use

, 41–42

capital management and budget stages

, 151–152

through capital management and budgeting stages and framework

, 151–152

capital market infrastructure debt financing

, 27–28

case of Mauritius

, 192–193

communication in transparency

, 189–192

debt financing and long-term debt capacity

, 28

and evaluation

, 118–121

financing affecting partnership incentives

, 42–43

flexibility during capital project design in contract negotiation

, 185

government role in minimizing capital project costs

, 187

independent capital project financial analysis

, 181–182

infrastructure finance and delivery balance shift

, 55–59

infrastructure finance risk allocation in financing and delivery

, 185–186

institutional constraints to efficient and effective use

, 43–47

institutional dimensions

, 63

potential bond rating impact on use

, 188–189

PPP performance measurement and monitoring and feedback

, 183–185

by private institutions in efficient and effective delivery

, 42

public sector efficiency issues

, 59–61

relationship between PPP, transaction cost, and organizational characteristics

, 47–53

revenue forecasting in

, 180–181

risk-minimizing financing strategies

, 186–187

transaction cost theory in evaluating PPP as policy choice

, 187–188

Infrastructure finance policy shaping public value

, 103

balance of potential risk between public and private partners

, 127–128

balancing multiple macro and micro level potential risks

, 123–127

benefits and contributions of PPPs

, 121–122

capital improvements planning within capital management and budgeting processes

, 108–114

infrastructure finance policy design, implementation, and evaluation

, 118–121

macro level political, economic, stakeholder, and force majeure risks of PPPs

, 122–123

micro level risk assessment and management

, 123

practices in achieving infrastructure finance policy objectives

, 114–118

public value and private value

, 104

use of PPPs to leverage infrastructure financing

, 128–131

value dimensions

, 105–108

Infrastructure finance practices

in achieving infrastructure finance policy objectives

, 114–118

long-term debt in infrastructure finance planning

, 115–118

Infrastructure finance risk allocation

in financing and delivery

, 185–186

minimizing infrastructure finance risk

, 185–186

Infrastructure Funding Option Analysis

, 52

Infrastructure Investment Act

, 79

Infrastructure project selection process

, 141–142

Institutional constraints to efficient and effective infrastructure delivery

, 44–46

rules of game as constraints

, 44–46

Institutional dimensions in infrastructure finance policy design and implementation

, 63

Institutional framework for PPP

, 209–211

Interamerican Bank Development Group (IBD)

, 24–25

Interest rate equalization assessment

, 21

Internal Rate of Return (IRR)

, 140

International Accounting Standards

, 144–145

International Financial Reporting Standards (IFRS)

, 144–145

International Public Sector Accounting Standards

, 146–148

International Public Sector Accounting Standards Board (IPSASB)

, 146

Land

, 22

policy

, 21–22

Laws governing PPPs

, 73–85

Albanian Laws Governing PPPs

, 73–75

Indiana Laws Governing PPPs

, 82–85

Mauritius Laws Governing PPPs

, 75–79

United States Laws Governing PPPs

, 79–82

Lease or lease-purchase debt financing

, 18–19

Lease-Develop-and-Operate (LDO)

, 12

Legal and fiduciary requirements

, 174–176

Legal dimension

, 66–68

in Albania

, 66–67

in Mauritius

, 68

in New York State

, 67

in State of Indiana

, 67–68

Legal framework governing PPPs

laws governing PPPs

, 73–85

strengths and limitations of legal system and laws of national and subnational government

, 90–96

strengths and limitations of PPP laws

, 85–90

Legal risk in PPP contract negotiation

, 168–169

Legal systems to supporting PPP laws

, 85–86

Legal value dimension

, 105

Liberation Movement

, 64, 220

Limited liability corporation (LLC)

, 35

Limited obligation debt

, 19

Long-term debt capacity

, 28

Long-term debt in infrastructure finance planning

, 115–118

government debt affordability

, 115–118

Mario Cuomo Bridge

, 67–69

Mauritian Social Democrat Party (PMSD)

, 64, 220

Mauritius

economic dimension in

, 66

infrastructure Finance Policy

, 192, 220

legal dimension in

, 68

Legal System

, 89–90

organization dimension in

, 69–70

political dimension in

, 64

PPP Laws

, 97, 196–197

value dimension

, 106

Mauritius capital budget

, 193

Mauritius capital improvements planning process example

, 192

Mauritius capital management and budgeting process

, 109–110, 221–223

capital improvements planning

, 221

capital management and budgeting

, 221–223

Mauritius capital project

financing

, 193

monitoring

, 193

Mauritius case

, 212–214, 220–223

example of infrastructure finance policy best practice

, 212–213

examples of laws supporting PPPs

, 213–214

legal dimension

, 220–221

Mauritius capital management and budgeting process

, 221–223

political dimension

, 220

Mauritius Laws Governing PPPs

, 75–79

guiding principle

, 78–79

Mauritius definition of PPP

, 76

Mauritius PPP Policy Guidance

, 78

PPP institutional framework

, 79

procurement and contracting procedures/choice

, 78

scope of Mauritius Build-operate-transfer Act

, 76–77

Mauritius strengths and limitations

Mauritius Legal System and Laws

, 91–92

selection of private party limitations

, 92

Mauritius Utility Scale Wind Farm Build-own-operate PPP Best Practice

, 201

Micro level risk assessment and management

, 123

Militant Socialist Movement (MSM)

, 64, 220

Ministry of Finance (MoF)

, 109, 137, 218

Moody’s investors rating agency

, 29–30

Moral obligation debt

, 19

Multi-Criteria Decision Analysis (MCDA)

, 165–166, 201

Multilateral Development Banks (MDBs)

, 20, 135

National Development Plan

, 136

Net present value (NPV)

, 30–31, 61, 140

New York State

capital budgeting and management process

, 112–113

economic dimension in

, 65

Finance Law 137

, 82

Laws Governing PPP

, 79–80

legal dimension in

, 67

Legal System

, 87–89

organization dimension in

, 69

political dimension in

, 64

PPP Laws

, 97–98

Procurement Act

, 79–80

selection of Private PartyLegal framework

, 93–94

selection of Private PartyLimitations of law

, 94

selection of Private PartyPPP legal challenges

, 94

strengths and limitations of legal system and laws

, 93–94

value dimension

, 107

Nonproperty tax debt

, 19

Operating budget revenue sources

, 136

Organization dimension

, 68–70

in Albania

, 68–69

in Indiana

, 69

in Mauritius

, 69–70

in New York State

, 69

Organization for Economic Cooperation and Development (OECD)

, 6

Organizational value dimension

, 105–106

Pay-as-you-go financing

, 17

Performance-based specification

, 183

Political dimension

, 63–64

in Albania

, 64

in Indiana

, 64

in Mauritius

, 64

in New York State

, 64

Political stability

, 196

Political value dimension

, 105

Postcommitment stage

, 151, 161–163

Postcompletion stage

, 152, 163–165

Precommitment stage

, 151, 152–161

Present value (PV)

, 19, 61

Principal–principal relationship

efficiency issues in PPPs

, 59–61

evaluating economic efficiency of infrastructure finance policy options

, 60–61

Private contractors

, 5, 6

Private equity financing

, 25–26

Private infrastructure financing sources

, 23–24

Private value

, 104

Public managers

, 108

Public Procurement Agency (PPA)

, 75

Public Sector Comparator model (PSC model)

, 138–139

Public sector efficiency issues

in infrastructure finance and delivery

, 59–61

principal–principal relationship efficiency issues in PPPs

, 59–61

Public value

, 51–53, 104, 206

Public–private partnership financial risk

, 165–172

contract dispute resolution methods

, 171–172

contract performance standards to reducing risk

, 170–171

strategies to reducing financial risk

, 165–172

Public–private partnerships (PPPs)

, 3, 41, 73, 135, 179

benefits

, 211–212

benefits and contributions of

, 121–122

bond rating agencies in infrastructure debt financing

, 29–31

bounded rationality in PPP contracts

, 54–55

commercial market private sector financing sources

, 24–26

contract cost risk

, 126–127

contract uncertainty and risk

, 50–51

contracting stages

, 48–50

contractual arrangement

, 4

financing

, 32–33

forms of contractual arrangements

, 13–15

incomplete information in PPP contracts

, 53–54

infrastructure delivery forms of contractual arrangement

, 10–13

infrastructure finance and delivery balance shift in

, 55–59

infrastructure finance indirect support funding sources

, 21–22

infrastructure finance policy

, 15–21

infrastructure finance policy and funding sources

, 15

infrastructure finance policy as guide to capital management and budgeting

, 31–33

infrastructure finance policy design and implementation

, 26–28

infrastructure finance policy in infrastructure delivery

, 7–8

as infrastructure finance policy option

, 4–7, 205–206, 207–209

infrastructure financing and delivery risk classifications

, 33–36

institutional framework for

, 209–211

to leverage infrastructure financing

, 128–131

macro level political, economic, stakeholder, and force majeure risks of

, 122–123

performance measurement and monitoring and feedback

, 183–185

policy framework

, 92–93

potential bond rating impact

, 188–189

potential political risks

, 125–126

private infrastructure financing sources

, 23–24

relationships and public policy

, 8–9

selection of private partyobstacles to PPP contract implementation

, 92–93

selection of Private PartyPPP legal challenges

, 93

selection of Private PartySettlement of disputes and applicable laws

, 93

specific laws and legal system

, 96

transaction cost and economic efficiency

, 47–48

Quasi-governmental Export Credit Agency

, 21

Refinancing

, 14

Request for Proposal (RFP)

, 78

Request for Qualifications (RFQs)

, 81

Return on investment (ROI)

, 23–24, 140

Revenue bond debt financing

, 18

Revenue forecasting in infrastructure finance policy implementation

, 180–181

Risk

allocation in PPP contracts

, 169–170

risk-minimizing financing strategies under different financing conditions

, 186–187

transfer in PPP contracts

, 56–59

Rule of Law

, 66

Service Concession Agreements (SCAs)

, 147–148

Sovereign wealth

, 20

Special assessment debt

, 19

Special obligation debt financing

, 19

Stakeholder

involvement as best practice

, 201–202

key issues involving use of

, 202–203

Standard and Poor Bond Rating Agency (S&P Bond Rating Agency)

, 29, 30–31

Supreme Court

, 88

System for the Management and Allocation of Resources for Transportation SCALE (SMART SCALE)

, 158–159

Tappan Zee Bridge (see Mario Cuomo Bridge)

Tax credit bonds

, 18

Tax expenditures

, 22

policy

, 21

Tax revenue

, 17

policy

, 16

Taxable debt financing

, 32–33

Tirana International Airport PPP

, 69

Toll Road PPP Concession Contract-mature Economy

, 14

Traditional government capital infrastructure delivery

, 3

Transaction Cost Theory (TCT)

, 9, 46–47

in evaluating PPP as policy choice

, 187–188

Transaction costs

, 187

as constraint to economic efficiency

, 46–47

Trial courts

, 87–89

UKCDC Group

, 25

United States Laws governing PPPs

, 79–82

definition of PPP

, 80

guiding principle

, 80–81

New York State Finance Law 137

, 82

New York State Laws Governing PPP

, 79–80

PPP Institutional Framework

, 82

PPP procurement and contracting procedures

, 81–82

Value dimensions

, 105–106

case examples

, 106–108

economic value dimension

, 106

legal value dimension

, 105

organizational value dimension

, 105–106

political value dimension

, 105

Value for Money (VFM)

, 137–141

Value-added taxes (VAT)

, 16

Wind Farm

, 68

Wind Farm Energy PPP Build-own-operate Contract-transitioning Economy

, 15

World Bank

, 20