Dinh Thi Thuy Hang

Nghe an College of Economics

Vietnam

Hangdtt.edu.vn@gmail.com

Approaching Value for Money to assess viability of Public-Private partnership projects

Abstract. The aim of this paper is to evaluate whether decision-making to pursue a Public-Private partnership model is feasible to finance a project. In order to clarify this issue, this paper carries out an analysis based on an objective method, which is quantitative Value for Money (VFM) assessment. A case study of Trung Luong-My Thuan project in Vietnam is employed to explore the validity of the method. The research result proves that there is 99 percent probability that PPP is an appropriated model to implement this project. Additionally, the stimulated VFM output is positively sensitive to construction cost overrun risk, while it is negatively sensitive to traffic demand inaccuracy.

Received: September, 2018

1st Revision: December, 2018

Accepted: February, 2019

DOI: 10.14254/2071-8330.2019/12-1/15

JEL Classification: L32, L33

Keywords: Public-Private partnership (PPP), Value for Money (VFM), Trung Luong-My Thuan, Monte Carlos Simulations (MCS), Vietnam