The study analyses the institutional arrangements for: (1) private participation in the new Sydney Harbour Tunnel, and (2) the provision of new terminals at minor airports operated by a public-sector corporation. Commercial objectives probably secure efficient management of construction, but otherwise reap few efficiency benefits. When there are tight constraints on government budgets, commercial funding mechanisms make it easier for governments to promote their favoured schemes.
Topic: 14.5 Tunnels and bridges
Firms using the Humber bridge regularly for goods transport were able to benefit in a number of ways, and in this case it is appropriate to value savings in drivers’ time by the wage rate. But this conclusion may not be applicable to the more usual case of smaller incremental road improvements.
Pay-off matrices are used with discounting of costs to evaluate possible courses of action to be taken before or after complete or partial collapse of a bridge. Discounted costs are multiplied by joint probabilities to give an index for ranking the options.