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In this course, we focus on capital budgeting decisions by comporations and the methods for evaluating proposed projects, The same methods can be used to

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In this course, we focus on capital budgeting decisions by comporations and the methods for evaluating proposed projects, The same methods can be used to evaluate infrastructure projects fi.e. the construction and operation of essential services. facilities, and systems that are needed by a country, multiple countries, or regions of a country to property functionl. When an infrastructure project costs more than $1 billion and requires many stakeholders and other financial market participants to fund them. it is referred to as a megaproject. The financing of an infrastructure project can be done through either a government entity, an international agency, a consortium of private companies, or a combination of a government entity and private companies via a public-private partnership. Critical analysis in assessing the economic viability of an infrastructure project is the estimation of the projects cost, which is the focus of this discussion question. Project cost estimation is forecasting the costs of all resources related to a project. In general, costs can be categorized as the costs associated with constructing a project and the costs associated with operating a project once it is constructed. How good have sponsors of infrastructure projects been in estimating costs? The literature on estimating costs for megaprojects has shown that the track record with respect to coming close to a project's budgeted cost is dismal, Do an internet search to identify a megaproject and explain whether the project's construction cost came too close to the budgeted amount. If the budgeted amount was exceeded, explain why. To help with your megaproject search, infrastructure construction projects fall into the following general categories (1) aviation infrastructure, (2) bridge infrastructure, (3) communications infrastructure. (4) power and energy infrastructure. (5) railfoad infrastructure, (6) road infrastructure, (7) water distribution infrastructure. (8) waste management infrastructure, (9) hazardous waste management, (10) sports facilities, and (11) regional medical facilities

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