A risk-adjusted decoupled-net-present-value model to determine the optimal concession period of BOT projects

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nhat Nguyen ◽  
Khalid Almarri ◽  
Halim Boussabaine
Keyword(s):  
Net Present Value ◽  
Cost Benefit Analysis ◽  
Flow Analysis ◽  
Cost Benefit ◽  
The Body ◽  
Added Value ◽  
Present Value ◽  
Content Type ◽  
Private And Public ◽  
Concession Period

PurposeThe net-present-value (NPV) method is well-known for its drawbacks. To overcome some of these NPV weaknesses this paper aims to provide a methodology to determine an optimal concession period that treats risk and time separately. The purpose of this paper is to apply the notion of risk-adjusted decoupled net present value (risk-adjusted DNPV) to determine a conception period taken into consideration synthetic insurance premiums as compensation for risks.Design/methodology/approachThis paper conducts theoretical and empirical analysis and provides an integrated model for deriving concession periods of any PPP projects. The model is able to capture several contractual issues such risks costing and other contractual scenarios. Methodologically, the paper addressees both the issues of risk-based cost–benefit analysis and cash flow analysis bearing an emphasis of risk-adjusted DNPV to compute an optimum concession period.FindingsThe results show that using DNPV will produce a shorter concession period comparatively to NPV. The consequence of this is that the public sector will gain financially from an earlier transfer of the concession.Research limitations/implicationsThis paper contributes to the PPP literature by combing DNPV and risk to determine the PPP concession period for the mutual benefits both the private and public sectors. The decoupling of risk from traditional NPV computation will allow for risk pricing and tradability through insurance and allocation.Originality/valueThe attempt to decouple time and risk in the computation of NPV is the added value to the body of knowledge.

Cost Benefit Analysis of Industrial Noise Regulation

1995 ◽  
Vol 6 (1) ◽  
pp. 105-124 ◽  
Author(s):  
Stephen Holland ◽  
Jean Cross
Keyword(s):  
Occupational Health ◽  
Economic Analysis ◽  
Net Present Value ◽  
Cost Benefit Analysis ◽  
Health And Safety ◽  
Cost Benefit ◽  
Occupational Health And Safety ◽  
Cost Ratio ◽  
Regulatory Change ◽  
Present Value

This paper examines the application of the techniques of economic analysis to occupational health and safety regulations using occupational noise as an example. The paper explores the extent to which economic impact studies are practically feasible and useful in relation to occupational health and safety legislation. Six studies of the same regulatory change, from four countries were analysed. The results of these studies ranged from a strongly negative to a significantly positive net present value, depending on the assumptions made. The factor which had the greatest influence on these differences was the way in which benefits are costed. It is shown that in the field of Occupational Health and Safety, economic analysis does not produce a single valid net present value or benefit to cost ratio on which a decision to legislate can sensibly be based. However the analysis can, if properly directed provide useful information on factors which will enable organisations to optimise their response to the regulation and authorities to introduce regulations in a way which does not bear with unreasonable weight on specific sectors of the community.

scholarly journals Analisis Sistem Pengadaan Kendaraan Dinas Operasional Pemerintah Melalui Sistem Pembelian dan Sewa (Studi Pada Politeknik Negeri Padang)

2020 ◽  
Vol 15 (1) ◽  
pp. 91-101
Author(s):  
Elfitri Santi ◽  
Afridian Wirahadi ◽  
Arif Wahyu Saputra ◽  
Rasyidah Mustika ◽  
Ferdawati
Keyword(s):  
Net Present Value ◽  
Cost Benefit Analysis ◽  
Research Result ◽  
Cost Benefit ◽  
Benefit Analysis ◽  
Present Value ◽  
Analysis Instrument ◽  
The Cost ◽  
Value Of Money

The official goverment vehicles supply demand the goverment allocate fund in carefully and precise based on the needs. The value of money analysis between buy, rent, and leasing to supplying the official vehicles in Polytechnic State’s of Padang. intent on calculating, analyze, and comparing which alternative that make more value of money between the provisions system of buying, renting and leasing. Methods this Research is Qualitative and The analysis instrument that use in this research is Net Present Value Method also calculating the cost benefit analysis . The research examine 3 type or merk that represent the officeholder vehicles, such as Toyota Hiace Commuter, Kijang Innova V A/T, dan Avanza Veloz. The result of this research indicated that officeholder vehicles supplying system through the buying system is has more benefit that follow by the leasing system and the renting system. This research result could be a reference for Goverment in choosing supplying system of officeholder vehicles in Padang State’s Polytechnic.

scholarly journals THE FINANCIAL IMPLICATIONS OF BODABODA TRANSPORT BUSINESS AMONG YOUTHS IN ARUSHA- COST BENEFIT ANALYSIS

2020 ◽  
Vol 7 (4) ◽  
pp. 177-185
Author(s):  
Kepha Luvinga ◽  
Simon Kilasara
Keyword(s):  
Net Present Value ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Cost Ratio ◽  
Benefit Analysis ◽  
Present Value ◽  
Benefit Cost Ratio ◽  
Transport Services ◽  
Arusha Region ◽  
Benefit Cost

ABSTRACT This study reports upon the findings on the cost and profitability of bodaboda transport business among youths in Arusha. As used in this study, the term bodaboda applies for a two wheeled motorized taxi which provides ‘for hire’ type transport services to passengers and goods. The bodaboda have became an employment opportunity to many unskilled urban labour and further job opportunity to informal sector workers who wish to switch jobs in search of higher rewards. The questionnaires were used to collect data to 90 respondents from two districts of Arusha region namely Arusha and Meru district. Data analysis was done using descriptive statistics and cost benefit analysis. The finding from the study indicates that the bodaboda transport business is profitable with the benefit cost ratio (BCR) of 2.8 and the net present value (NPV) of 8,494,920Tsh for five years project duration. By having the benefit cost ratio and the net present value greater than 1, the bodaboda business is profitable and worth being undertaken. Based on the findings from the study it is recommended that the government authorities and all key stakeholders should regulate, and support the implementation of bodaboda bussiness through formalization of bodaboda associations, assurance of financial supports and capacity building to youths who engage or willing to engage in the business.

scholarly journals Analisis Kelayakan Proyek Investasi Teknologi Informasi menggunakan Metode Cost-Benefit Analysis pada Jumbo Swalayan Manado

2020 ◽  
Vol 4 (2) ◽  
pp. 84-91
Author(s):  
Ahmad Maulana Fikri ◽  
Bragatama Pertiwibowo ◽  
Dorce Berkat Tandirau ◽  
Enjellia Priscilla Br. Pangaribuan ◽  
Faisal Fachrureza
Keyword(s):  
Net Present Value ◽  
Cost Benefit Analysis ◽  
Information Economics ◽  
Cost Benefit ◽  
Payback Period ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Benefit Analysis ◽  
Present Value ◽  
Internal Rate

Setiap organisasi perlu dalam melakukan investasi teknologi informasi untuk memastikan kinerja TI yang lebih baik. Namun, kebutuhan dana untuk melakukan investasi teknologi informasi tidaklah sedikit. Oleh karena itu, diperlukan suatu analisis terkait investasi TI untuk memastikan kelayakan keputusan investasi TI. Pada penelitian ini, akan dilakukan analisis investasi teknologi informasi pada Jumbo Swalayan Manado. Data-data untuk melakukan analisis akan merujuk pada penelitian oleh Rembang, Chandra S. dkk (2012). Dalam penelitian sebelumnya, telah dilakukan analisis untuk mengtahui keefektifan sebuah investasi TI, dimana digunakan metode Information Economics (IE). Pada penelitian ini, akan dilakukan analisis untuk mengetahui kelayakan sebuah investasi TI menggunakan metode Cost-Benefit Analysis. Perhitungan yang akan dilakukan dalam penelitian ini antara lain Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index (PI) dan Payback Period. Hasil yang didapatkan dari penelitian ini dapat disimpulkan bahwa proyek investasi teknologi informasi dinilai layak dan menguntungkan bagi Jumbo Swalayan Manado. Selain itu, 3 Bulan 9 Hari merupakan jangka waktu untuk mengembalikan dana investasi berdasarkan perhitungan yang dilakukan. Kata Kunci: Analisis Kelayakan, Cost-Benefit Analysis, Investasi Proyek TI .

scholarly journals Cost Benefit Analysis (CBA) Program Pemberian Makanan Tambahan (PMT) Susu Pada Karyawan di PT. Trisula Textile Industries Tbk Cimahi Tahun 2018

2019 ◽  
Vol 2 (3) ◽  
Author(s):  
Ayu Laili Rahmiyati ◽  
Asep Dian Abdillah ◽  
Susilowati Susilowati ◽  
Dinna Anggaraini
Keyword(s):  
Net Present Value ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Payback Period ◽  
Internal Rate Of Return ◽  
Benefit Analysis ◽  
Present Value ◽  
Cost Rate ◽  
Textile Industries ◽  
Benefit Cost

Cost Benefit Analysis (CBA) digunakan untuk proses identifikasi, pengukuran dan perbandingan sosial manfaat dan biaya proyek atau program investasi dalam mengevaluasi penggunaan sumber daya ekonomi yang langka agar dapat digunakan secara efisien. Penelitian ini bertujuan untuk mengetahui perhitungan manfaat dan biaya dari program Pemberian Makanan Tambahan (PMT) susu di PT. Trisula Textile Industries Tbk Tahun 2018 dan untuk menetukan kelayakan akan keberlangsungan program atau kebijakan dari PMT susu. Penelitian ini menggunakan pendekatan kuantitatif.Pengumpulan data dilakukan melalui wawancara, observasi, dan telaah dokumen. Analisis perhitungan menggunakan Payback Period (PP), Net Present Value (NPV), Internal Rate Of Return (IRR), dan Benefit Cost Rate (BCR). Hasil perhitungan nilai NPV pada program PMT susu adalah Rp. 23.534.448,76,-. Kesimpulannya adalah program PMT susu dapat diterima karena NPV > 0. Hasil perhitungan rasio benefit-cost adalah sebesar 2,50 (hasil rasio ≥ 1), artinya program PMT susu tersebut layak untuk tetap berlangsung. PT. Trisula Textile Industries Tbk diharapkan dapat melanjutkan program PMT susu pada karyawan. Data dasar penelitian dapat dijadikan bahan kajian bagi perusahaan untuk menyusun program kesehatan atau peningkatan kesehatan bagi karyawan melalui PMT atau program lain yang lebih prioritas. 

scholarly journals Cost-Effectiveness Analysis of a PVGS on the Electrical Power Supply of a Small Island

2014 ◽  
Vol 2014 ◽  
pp. 1-9 ◽  
Author(s):  
Cheng-Ting Hsu ◽  
Roman Korimara ◽  
Tsun-Jen Cheng
Keyword(s):  
Energy Demand ◽  
Capital Investment ◽  
Net Present Value ◽  
Financial Analysis ◽  
Cost Benefit Analysis ◽  
Flow Analysis ◽  
Cost Benefit ◽  
Load Flow ◽  
Solar Irradiation ◽  
Small Island

This paper presents a feasibility study of a large simulated stadium-scale photovoltaic generation system (PVGS) on a small island. Both the PVGS contribution to the energy demand on the island and its financial analysis were analysed in this study. The maximum allowable PVGS installation capacity is obtained by executing load flow analysis without violating the voltage magnitude and voltage variation ratio limits. However, the estimated power generation of PVGS is applied to know its impact on the power system according to the hourly solar irradiation and temperature. After that, the cost-benefit analysis of payback years (PBY) and net present value (NPV) method is derived considering the cash flow from utilities annual fuel and loss saving, the operation and maintenance (O&M) cost, and the capital investment cost. The power network in Kiribati (PUB DNST) is selected for study in this paper. The simulation results are very valuable and can be applied to the other small islands for reducing the usage of fossil fuel and greenhouse gas emissions.

scholarly journals An economic analysis of afforestation as a carbon sequestration strategy in southwestern Ontario, Canada

SURG Journal ◽  
2013 ◽  
Vol 6 (2) ◽  
pp. 55-65
Author(s):  
Nigel Gale ◽  
Janelle Trant ◽  
Thomas Schiks ◽  
Jake L'Ecuyer ◽  
Christopher Jackson ◽  
...  
Keyword(s):  
Carbon Sequestration ◽  
Tree Species ◽  
Atmospheric Carbon Dioxide ◽  
Net Present Value ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Cost Effective ◽  
C Sequestration ◽  
Present Value ◽  
Optimal Price

Afforestation, the establishment of trees in areas that have not been forested for at least 50 years, is one possible approach for carbon (C) sequestration to mitigate climate change. This study compares the costs and benefits of afforestation as a carbon sequestration strategy for Eden Mills, a village within Wellington County, Ontario, Canada aiming to achieve C neutrality. We provide net present value analyses for three potential planting schemes under subsidized and unsubsidized financial scenarios that aim to sequester 2012 tonnes of atmospheric carbon dioxide (CO2) using traditional and novel calculations of C sequestration rates. We present the total project costs, the optimal price of C, and the potential for afforestation as a C sequestration tool in southern Ontario. Planting schemes employ mixtures of tree species common to the region. Unsubsidized schemes are projected to cost between $617,976-$1,499,904 (CAD) with the optimal price of CO2 between $6.15-$14.91 per tonne of C sequestered. A deciduous-dominated planting scheme requiring 24 hectares of land resulted in the lowest cost for all scenarios. Our analyses suggest that: 1) fast-growing tree species make afforestation projects more cost-effective, reducing costs by 29-59%; and 2) land management subsidies available to the region reduce costs by approximately 10%. Future cost-benefit analyses for afforestation projects should consider site-specific C sequestration rates and parameter sensitivity analysis when quantifying C absorption. Keywords: greenhouse gases; carbon sequestration; afforestation; cost-benefit analysis; net present value

scholarly journals ANALISIS KELAYAKAN INVESTASI PROYEK REHABILITASI PEMIPAAN INLET OUTLET KONDENSOR DI PT. INDONESIA POWER UJP PLTU PANGKALAN SUSU

2020 ◽  
Vol 9 (1) ◽  
pp. 13
Author(s):  
Sri Meutia ◽  
Suci Ramadhani
Keyword(s):  
Net Present Value ◽  
Cost Benefit Analysis ◽  
Average Rate ◽  
Cost Benefit ◽  
Payback Period ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Benefit Analysis ◽  
Present Value ◽  
Internal Rate

PT. Indonesia Power UJP PLTU Pangkalan Susu merupakan perusahaan yang bergerak dalam bidang pembangkitan tenaga listrik serta jasa operasi dan pemeliharaan dengan daya terpasang 2 x 200 MW. Pada umumnya perusahaan telah menerapkan metode study kelayakan investasi proyek yang ditinjau dari aspek finansial yaitu dengan cara menghitung nilai investasi dengan menggunakan perhitungan Internal Rate Of Return(IRR), Payback Period(PP), dan Cost Benefit Analysis(CBA). Selain menganalisis kelayakan investasi proyek pemipaan inlet outlet kondensor PT. Indonesia Power UJP PLTU ini juga selalu  menganalisa kelayakan investasi proyek yang lainnya dengan menggunakan metode yang sama. Penelitian ini dilakukan dengan menghitung nilai investasi dari proyek pemipaan inlet outlet kondensor retur(IRR), ngan cara menghitung nilai Present Value Kas Bersih, Average rate Of Return(ARR), Net Present Value(NPV), Internal Rate Of Return(IRR), dan Profitability Index(PI). Dari hasil perhitungan yang telah dihitung didapatkan nilai kelayakan investasi yang ditinjau dari aspek finansial secara berturut turut adalah Rp. 1.727.845.392.701, Rp 103.452.495.100, Rp 1.713.300.392.701, dan 118,79 Kali. Sehingga dapat diambil kesimpulan bahwa investasi kelayakan proyek pemipaan inlet outlet kondensor di PT. Indonesia Power UJP PLTU Pangkalan Susu yang ditinjau dari aspek finansial dapat dinyatakan bahwa proyek tersebut layak untuk dijalankan

scholarly journals COST – BENEFIT ANALYSIS FOR NIGERIAN NATURAL GAS PIPELINE INVESTMENT

2020 ◽  
Vol 7 (9) ◽  
pp. 52-65
Author(s):  
Gift Nwabueze ◽  
Joel Ogbonna ◽  
Chijioke Nwaozuzu
Keyword(s):  
Natural Gas ◽  
Net Present Value ◽  
Oil And Gas ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Gas Pipeline ◽  
Transport Cost ◽  
Benefit Analysis ◽  
Present Value ◽  
Natural Gas Pipeline

This paper performs cost-benefit analysis of a pipeline infrastructure project based on a given natural gas demand in order to estimate the net present value and payback time for natural gas pipeline investment in Nigeria. The result of the cost-benefit analysis indicates a positive net revenue and net present value (NPV) at the current regulated transport cost and availability factor for gas pipelines in Nigeria. However, with a payback period of 14 years, a natural gas pipeline project in Nigeria is likely to lose-out investment capital to other competing investments within the oil and gas sector. Scenario analysis indicates that by doubling the regulated transport cost with a 50% tax reduction, the pipeline investment results in a much higher NPV and a payback of 4 years, which is more acceptable to investors.

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