Public private partnership in motorway service areas: Decision making, investment analysis and best practice tools

The theoretical framework of Public Private Partnership (PPP) for construction-financing-operating of Motorway Service Areas (MSA) is initially presented and illustrated through diagrams. Further, relevant research carried out at Bauhaus - Universitat Weimar (Germany) and Egnatia Odos SA (Greece) is described, wherein data from four European countries: England, France, Italy and Greece have been collected, compared and analyzed. Next, the MSA planning procedure on an expanding highway is described and the decision making stages for the selection of the suitable positions are analysed. This process includes a successive approach from the macro to the micro environment. Thereafter, the 'base case' cash flow model for investing in a typical MSA is presented and as well as the partial components (construction-financing-operating costs and revenues) and the estimation methodology (input/algorithm/output) are explained. The final cash flow diagram provides exemplary illustration of this case study. Hereupon, MSA risk management: identification, analysis and allocation of essential risks are qualitatively approached. This approach is integrated using a critical analysis of the macro economic components. Last but not least, precise conclusions that could be applied as 'best practice tools' regarding the planning decision, the traffic break / income estimation and risk management are presented.