Infrastructure PPP Projects

Infrastructure PPP Projects


Prosperity and well-being crucially depend on infrastructure projects like ports, highways, water systems, pipelines, hospitals and the like. They facilitate transport, improve communication, provide energy and water, boost the health and education of the workforce and enable the whole economy to flourish. The costs of building infrastructure are vast, but the costs of failing to make such investments are incalculable.

The need for infrastructure investment around the globe is climbing and such investment is urgently required. In the developed world significant reinvestment in ageing infrastructures is becoming necessary. In emerging markets, population growth, increasing urbanisation, and rising per capita incomes are driving the demand for new infrastructural spending. This trend, coupled with the new financial reality, which has severely constrained public budgets in many countries, has led to a staggering gap of approximately 2 trillion USD annually between demand and investment in infrastructure for the period of the next 20 years.

Solution to this ever-increasing gap can be addressed by Public-Private Partnerships, whereby private partners build, control and operate infrastructure projects subject to strict government rules and oversight.

Public-Private Partnerships appear in many variations known as BOT (build-operate-transfer), BOOT (build-own-operate-transfer), BTO (build-transfer-operate), DBFO (design-build-fund-operate) and others, depending on agreement between public and private partners. All of them have in common that they refer to long-term partnerships as private partners need long time to return their investments, operative costs and planned profits.

In some cases (e.g. the European Union) Public-Private Partnerships are clearly seen as an important vehicle for addressing the region’s needs to boost its growth in the medium to long term, an impossible goal if limited to public investment alone.


At Real Options Consulting Ltd, we are merging real options and PPP.


Real Options Consulting Ltd is a company specialized in the valuation of risks and real options in infrastructure Public-Private Partnership projects.

We bring to our clients the best of theory and practice of Real Options and Public-Private Partnership with the purpose of creating the most suitable solutions for them.

Contact Us

Real Options Consulting Ltd 20-22 Wenlock Road, London, N1 7GU
United Kingdom
Email: [email protected]
Phone: +44 70 2403 4340