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Infiastructure such as boipitals, bighways, and talithes used to be tails and fintnced by governments for the piblic good More recestly, wath many posemments runining
Infiastructure such as boipitals, bighways, and talithes used to be tails and fintnced by governments for the piblic good More recestly, wath many posemments runining bud aet deficits and being unable so. continue financing rich public projects, a new form of finencing public projects has becerne more and more popular. It it called PPP, short for poblic-private partnenhip, tefernirg to a government vervice funded and openated through a partnership of gotenment and one or more pmate sector companies. The most connon form of PPP is a compary called a special parpose vehicle (SPV) that is organized by the private sector companies. The SPV bidu for a got emunerit project and signs a ecentract with the government \& tuccesfol. The SPV mould baild and rai the project junt like a tomentional project finenced wich capital from grwate sources. After several year, as promised in the contract with the SPV, the governenent wowld buy out the private sector's stake in the project by prosiding a cne-time grant and thing ove operations. The following information relates to an ergoing Pp? Discount rate 13% Compute NPV
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