A value-for-money test: build it ourselves or use a PPP?
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The prompt
A regional government needs a new road. Option 1: build it itself for USD 100 million now and pay USD 3 million a year to maintain it for 20 years. Option 2: a PPP partner builds and maintains it, and the government pays USD 10 million a year for 20 years, reduced if lanes are closed. At a 5 percent discount rate, the present value of USD 1 a year for 20 years is about 12.46. Which option costs less in present value?
Practice with a partner
1. Send the interviewer link to a friend. They read the case aloud and hold the answers.
2. You open the candidate view: you see only the prompt, a timer and a notes box.
3. Speak the case out loud. Your partner shares data when you ask, then scores you with the rubric.
Interviewer view
For the person running the case
Candidate view
For the person answering the case
Clarifying questions, with the interviewer's answers
My notes on this case
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