<p>This study proposes a standard financial model for road construction public-private partnership. The results summary lists period assumptions, results of key analyses, results of investment cost and financing, and results of revenue and cost. To help users better understand the model, a kind of users' manual is provided along with explanation of the limitations of the standard financial model, special notes to consider when using the model, and information on key<br />
project feasibility indicators. Major assumptions raised in the financial model of the already signed concession agreement are also addressed and their effects explained.</p>
<p>They are as follows:</p>
<ul>
<li>assumption of end-of-period and beginning-of-period prices</li>
<li>controversy over whether interest income should be reflected</li>
<li>nature of incidental financing cost</li>
<li>accounting for acquisition and replacement of operating equipment</li>
<li>calculation of quarterly interest expenses</li>
<li>deduction of interest rate in excess of appropriate level of interest rate</li>
<li>zero-rate VAT on contributed-acceptance assets</li>
</ul>
<p> </p>