Wednesday, May 30, 2012

HILLION Pierre, WEE Jean
Public-Private Partnerships: The Project Financing of the Indiana Toll Road
©2012 INSEAD Case Study
Also available: Teaching Note

A consortium made up of Macquarie Infrastructure Group (MIG) and Cintra Concessiones de Infraestructuras de Transporte wins the concession for the Indiana Toll Road at a bid price of US$3.8 billion in January 2006. Market observers think the amount is too high, but MIG is confident the asset is worth the price.

Pedagogical Objectives: Valuation of infrastructure asset, determining the right discount rate, pros and cons of public-private partnerships, winner's curse.