PRIVATISATION OF ROAD TRANSPORTATION INFRASTRUCTURE IN DEVELOPING COUNTRIES

This paper attempts to provide an insight to the need and the available options for privatization practices being implemented in developing countries. These include private sector financing as contractor financing, BOOT financing and subsidized BOOT financing, among others. The paper provides the basics involved in important options for privatization and then examines the effect of reduced revenues on overall profitability of the project from the entrepreneur's as well as the host government's perspective. An effort has been made to develop an empirical relationship among different variables of the phenomenon using a computer simulation technique. Finally, the most suitable method has been detailed and examined from an economical prospective.