Selection of quantitative and qualitative methods for comprehensive evaluation of PPP projects focusing on the Czech Republic

Abstract

The article deals with the theoretical back-ground and concepts providing the basis for the use of forms of financing and acquisition of public goods and services through partnerships between the public and the private sectors (public-private partnership – PPP). The aim of this article is to introduce a new original methodology using a selection of qualitative and quantitative methods for evaluating investments and to form a complex output that will clearly and distinctly testify about the appropriateness of using the PPP method. For this purpose, processes which are normally used for business valuation – generators of values, property valuation, yield valuation, valuation based on market analysis, are combined and incorporated/recast in the current assessment methodology, which is based on the Public Sector Comparator and determinants of value for money (VFM), are being used. Although this new methodology was developed in response to the problematic situation regarding PPP projects’ evaluation particularly in the Czech Republic, it can also be applied in other countries.