Correlation Model between Estimated Project Cost and Net Present Value (NPV) on Transportation Infrastructure Projects Using Public Private Partnership (PPP) Scheme

Abstract

Public Private Partnership (PPP) scheme has been used throughout the world as an effective tool to fill the gap between the surge in infrastructure development needs and the shrinking of public fiscal budget. The Ministry of Public Works and Housing 2030's vision is focused on the construction of infrastructure. The state budget related to road infrastructure development around Rp 1.796 trillion but not all the needs fit to the budget. The aim of this research are identify field facts related to infrastructure financing with PPP, create correlation model and evaluate the suitability of the model. The success factor implementation of Public Private Partnership (PPP) scheme is the positive value of Net Present Value (NPV) that indicates the project is feasible. The correlation model between estimated project cost and Net Present Value (NPV) performed using statistical analysis is also used to make financial scheme from user-pay and government-pay on the PPP. The correlation model is Yt = 102.227.962 + 0,1098892t which the variable t can be changed into the number of estimation concession period. The result from this research are expected as a reference in determining project cost and negotiating the equity financial between user-pay and government-pay on PPP's project.