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Selected Case

published: 25 May 2012

  • Topic: Economics & Finance
  • Industry: Infrastructure
  • Region: North America

Abstract:
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.

Keywords:
Toll Road, Infrastructure, Public-Private Partnership (ppp), Project Finance, Privatization, Step-Up Swap, Corporate Governance, Auditing, Risk Control and Performance

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