SLIDE 59 Net Cost Gross Cost Modified Gross Cost
Private sector collects fare revenue and
- ther revenues and public sector
receives benefit according to contract. Public sector collects fare revenue and
- ther revenues by themselves and
hires private sector to operate according to determined standardization. Similar to Gross Cost approach which public sector collects fare revenue and
- ther revenues by themselves and hires
private sector to operate which private sector will receive additional income according to number of ridership.
Operation Pros
- Public sector receives share revenue in
fixed amount according to contract between public sector and private sector that is responsible for Operation and Maintenance and commercial development.
- Public sector transfers all operational risk
including revenue risk and expense risk to private sector
- Public sector losses opportunity in
receiving additional revenue if ridership increased more than predicted
- Public sector cannot determine fare
rate and approach and other regulation in operation
- Public sector can receive more fare
revenue if ridership increases.
- Public sector does not have expense
risk during operational period1
- Public sector can determine and
control fare rate
- Public sector does not have expense
risk in operation period1
- Public sector can determine and control
fare rate
- Public sector receives revenue risk
because public sector collects fare revenue and other revenues
- Public sector receives revenue risk
because public sector collects fare revenue and other revenues
1 2 3
Private Sector Participation Approaches
Significance
Remark : All data in this document is an primary data. MRTA is now in the process of validating and adjusting according to comments from relevant agencies.
