Measuring the value of public–private partnership

There is a value of public–private partnership (PPP) for investors. The question is how to measure this value. There is significant financing component in any PPP because the grantor provides the operator (and consequently the investors) with a significant benefit of financing the construction. When measuring the value of financing the discount rate corresponding to separate financing transaction between operator and grantor at PPP inception. The payments for construction by grantor to operator and subsequently to investors can be decomposed into three components: (i) payments to construction company; (ii) accrued interest on debt of grantor; and (iii) lump sum PPP value for operator and subsequently for investors.