Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.
Case
-
Reference no. HKS1400.0
Published by: Harvard Kennedy School
Published in: 1997
Length: 15 pages

Abstract

This case recounts the work of a special Argentina-Uruguay bi-national commission convened to examine the economics of a proposed bridge that would link the tow countries. The bridge being considered by commission officials in the spring of 1996 was to extend 41 kilometers across the River Plata estuary, from Buenos Aires to the Uruguay city of Colonias. It would be by far the longest in the world. The case recreates the problem as faced by the commission, which had to consider whether it would make financial sense for a private concessionaire to build and operate the bridge. Specifically, bridge commission staff had to critique the work and recommendations of a private consulting firm whose market projects led it to conclude that tha US$1 billion bridge could successfully be financed by tolls of US$60 per car. The case calls for an understanding of such economics concepts as pricing and net present value, as well as the construction of alternative income and demand scenarios.

About

Abstract

This case recounts the work of a special Argentina-Uruguay bi-national commission convened to examine the economics of a proposed bridge that would link the tow countries. The bridge being considered by commission officials in the spring of 1996 was to extend 41 kilometers across the River Plata estuary, from Buenos Aires to the Uruguay city of Colonias. It would be by far the longest in the world. The case recreates the problem as faced by the commission, which had to consider whether it would make financial sense for a private concessionaire to build and operate the bridge. Specifically, bridge commission staff had to critique the work and recommendations of a private consulting firm whose market projects led it to conclude that tha US$1 billion bridge could successfully be financed by tolls of US$60 per car. The case calls for an understanding of such economics concepts as pricing and net present value, as well as the construction of alternative income and demand scenarios.

Related