Suitability and Performance Indicators of Toll Road Delivery Methods

Abstract

Even though no toll road project delivery alternative is perfect in handling the variability of project characteristics, a specific delivery approach is better suited than another based on the specific requirements of a particular project. In this regard, the National Highways Authority of India (NHAI) is implementing a range of toll road delivery approaches that deal with the different project characteristics and levels of private sector involvement. These toll road delivery methods (TRDMs) inculde (1) the public–private partnership (PPP) model of build-operate-transfer (BOT) toll, the annuity method, or the hybrid method; (2) the public method; and (3) the composite method. The application of a suitable method is the key parameter that influences the life-cycle performance parameters of toll road projects. However, the suitability of TRDMs relative to the characteristics of projects and their performances has not been studied yet. Toll road project delivery is a complex endeavor due to the involvement of designing, financing, constructing, and operating activities in different phases of toll road delivery. This needs a framework that presents the suitability and performance of TRDMs in a comparative way. This study offers a framework that supports toll road delivery selection–related decisions. The framework was created following a review of the literature as well as experts’ related findings concerning the suitability and performance indicators of TRDMs. Finally, 15 suitability and 21 performance indicators of TRDMs were identified under seven suitability and six performance packages, respectively. These indicators were used to explore the perceptions of National Highways Authority of India experts regarding the suitability and performance of levels of TRDMs. The study analyzed the questionnaire data through descriptive analysis and one-way ANOVA. Subsequently, the authors established TRDMs suitability and a performance framework. This framework presents the suitability and performance indicators of five TRDMs in a comparative way and provides supporting information for decision makers to select the best project delivery mechanism in terms of suitability and performance.