State-of-the-art of Literature Reviews on Project FinancingModels for Toll Road Investments

Lukas B. Sihombing1,a, Yusuf Latief2,b, Ayomi D. Rarasati3,c,and

Andreas Wibowo4,d

1Civil Engineering, University of Indonesia, Indonesia2Civil Engineering, University of Indonesia, Indonesia3Civil Engineering, University of Indonesia, Indonesia

4Agency for Research and Development, Ministry of Public Works and Housing, Indonesia

alukas_sihombing@yahoo.com, blatief73@eng.ui.ac.id, cayomi@eng.ui.ac.id, dandreaswibowo@pu.go.id

Keywords: state of the art, literature, financing model, toll road, investment

Abstract. The financial sustainability has been a major issue ingreenfield toll-road projects. Most of Indonesia’s 24 toll roadconcessions already signed by Toll Road Authority, for instance,cannot be put in operation because of financing problems.Uncertainties of long-term project revenues, limitation of budgetprovided by governments, inadequate government supports for landacquisitions, lack of toll road financing itself and low trafficestimates have been widely cited as potential sources of thisunsustainability. Using desk study and meta analysis, this researchaims to investigate the state-of-the-art of innovative financingmodels recently introduced to address financial problems. Thesemodels include earmarked tax revenue system, deep discount bonds,take out financing, tax increment financing, land leases, deferreddebt, and private donation.

1. IntroductionProject finance takes place when a project is a legally and

economically independent project company or independent assets inwhich economic unit or special purpose vehicle (SPV) services thedebt from the project cash flow alone; this type of financing is alsoknown as non-recourse as the lender cannot recourse to the parentcompany of the borrowing SPV when the project goes wrong [1, 2].According to Finnerty [3], in project financing careful financialengineering must ensure that risks and rewards are properly traded-

off and the SPV is economically strong to meet its obligations toboth creditors and shareholders. The application of project financing scheme especially for public

infrastructure project is actually not a new concept; it has beenused in English road systems in the 18th and early 19th centuries [4].In Indonesia, the first application was in 1978 whenever theGovernment built the 60 km Jakarta-Bogor-Ciawi (Jagorawi) toll road[5]. This project costed about IDR 350 million per kilometers at thattime’s currency value and financed by a combination of foreign loanand government budget [6]. At present, most of project finance-basedIndonesian toll roads are implemented under build-operate-transfer(BOT) contract [7]. However, despite a great demand over the years, the construction

and operation of new toll roads developed very slowly. The list ofreasons to explain this slow progress is long but some factors seemto stand out more than the others and one of these factors isfinancial sustainability. For instance, most of Indonesia’s 24 tollroad concessions already signed by Toll Road Authority cannot be putin operation because they faced financing problems. The potential sources of financial unsustainability include

uncertainties of long-term project revenues, limitation of budgetprovided by governments for toll roads [8], inadequate governmentsupports for land acquisitions [9, 10], lack of toll road financingitself [11, 12] and low traffic estimates [13]. According to Halpinand Senior [14], it needs alternative gap financing to fill the gap.The objective of this paper is to present state of the art literaturerelated to project financing models in toll roads. 2. Sources of Fund Project finance often involves many stakeholder organizations and

constitutes complex contractual arrangements among them. A simplifedproject finance structure is illustrated in Fig. 1. It is alsotypically characterized by high leverage, averaging 70 % or evenmore. The debt generally comes from four sources: bank financing(domestic and overseas), insurance companies, conduit-loansecuritization, and single-asset securitization [15]. Given the non-recourse nature in project finance, banking

institutions will put serious consideration on cash flow estimatesand risk analysis. To analyze the default risks, banks employqualitative or quantitative approaches or both of them [16]. Forlarge projects, banks also usually assign financial advisers and lead

managers to help underwrite debt and place them in capital markets,such as in US, Europe, Middle East, and Africa especially for powerindustries, oil and gas, and transportation industries [16].

Figure 1. Simplified Project Finance Structure [4]

Equity is the second source of capital to finance large projects.Project’s equity shareholders (i.e. the project sponsor) are entitiesthat are usually linked with the core business or have someconnection, such as construction companies, equipment suppliers,maintenance agencies, construction contract [17]. Private equityinvestors‘ decision to invest in an infrastructure project isinfluenced by country risk, project structure, year of investment andproject cost [17]. Whether or not equity investors receive cashdistribution will depend on the expected residual value of theproject and the profitability of the project.

3. Literature ReviewFink [18] defined literature review as “a systematic, explicit, and

reproducible method for identifying, evaluating, and synthesizing the

existing body of completed and recorded work produced by researchers,scholars, and practitioners”. Fitt [19] concluded that the purpose ofliterature review prepares to remain a gap in the understanding ofthe process of how future scholars for their future roles. Thesedefinitions have given emphasis to the review process as well as thedesired results. Brewerton and Millward [20] further stated that to find the

structural and content criteria, literature review can be used asqualitative and quantitative techniques to analyze the content.Harland et al. [21] argued that the conceptual content of the domainand may even contribute to theory development can be identified by aliterature review. In the literature review trends several un-noticedof critical analysis of the research papers. However, the challengeis the development of the domain is analyzed by using the wholeliterature. Therefore, to provide comprehensive reviews within thedefined boundary, it needs some delimiting criteria to make itpossible. A systematic review involves a number of discrete steps: question

formulation; finding studies; appraisal and selection of studies;summary and synthesis of relevant studies; and determining theapplicability of results” [22]. There are eight steps in conducting asystematic review: formulate review question, define inclusion andexclusion on criteria, locate studies, select studies, assess studyquality, extract data, analyze and present results, and interpretresults [27]. Iterating the objective of this paper here that it presents the

research trend of project financing models, the paper’s methodologyfollowed the procedure suggested by Mayring [23]. In order to enhancethe level of understanding, the research question introduced to guidethe review process is “what is the current status of literatureaddressing the major investment project issues causing financing gapin toll road investment scheme financing models?” a. Literature collection and boundary Identification

Literature focusing on project financing in toll road investmentswas initially surveyed from various sources of publications,including technical papers from peer-reviewed journals, conferenceproceedings, white papers, presentation materials from industry, andmaster or doctoral theses. The preliminary criteria adopted toinclude an article are that it was published over period of 1999-2013

and addressed toll road investment scheme financing models andissues.

b. Content analysis

The content analysis of the collected literature was presented atthis section. Mayring [23] suggested the four-step process andfollowed by Seuring and Mueller [24] and cited by Shukla andJharkharia [25] to perform this analysis:

Step 1. Material collection: research papers from all sourcesrelating to infrastructure financing, especially toll roadproject financing were collected and then subjected to delimitingcriteria. Selected papers were those that satisfied according tothe delimiting criteria.

Step 2. Descriptive analysis: to provide the base for theoreticalanalysis. The selected papers were then analyzed (e.g. the numberof publications per year).

Step 3. Category selection: to categorize the collected material;structural attributes and corresponding analytic categories wereselected. The major topics of analysis are formed to constitutethe analytical category as structural attributes. The structuralattributes namely geographies, problems context, methodology, andproduct.

Step 4. Material evaluation: to find relevant issues and trends inthe literature, the structural attributes as a base to analyzethe collected papers. Within the structural attributes performthe detailed analysis of the papers.

Figure 2. Step wise representation of a structured content analysis

Figure 2 shows the analysis process of detailed representation (step3 and 4), and analysis purpose can be seen at feedback loop.

To define structural attributes and the corresponding analyticalcategories, an inductive or a deductive approach can be used. In thefomer, theoretical background and research question derive andformulate a criterion of definition whereas in the latter, examplesand coding rules will give explicit definitions, which determineexactly under what circumstances a text passage as a coding agenda[26]. However, according to Shukla and Jharkharia [25], it is betterto use both the approaches iteratively.The validity of this research was based on the guideline provided

by Kassarjian [27], to enhance or diminish the likelihood of validinference depends on the choice of categories, content units,examination of the units of measurement, categories, samplingprocedures, and results. To form the constructs referred to reviewsof other topics. 4. The segmentation of Research and overviewThe delimitation criteria were analyzed to qualify research papers

for the research outlets. The effort of researchers and practitionersfrom various disciplines were evaluated to perform exercise on thecurrent status of toll road financing models (TRFMs) literature. Atotal of 24 articles met the criteria and were used for furtheranalysis. The list of the journals addressing the financing modelissues for toll road infrastructure is presented in Table 1. It isevident that most of the journals (i.e. 22) are either frominfrastructure project financing or economic and regulationmanagement.a. Infrastructure Project Financing Journals

These journals specifically address infrastructure projectfinancing issues although problems may be related to infrastructureproject financing (IPF). Of 24 papers reviewed, 14 papers werepublished in these journals addressing the IPF issues from a TRFMsperspective. This shows that many researchers have attempted to solveproject financing problems in toll road sector. Here the producecharacteristics may or may not be of much concern as the mainobjective is project finance excellence. In such a scenario, thechances of theory development, specifically for toll road projectfinancing models are very less. It more likely that already existingtheories may be applied to solve the problems at hand. Thus, theexclusiveness for toll road project financing models may not beaddressed in most of the papers. The percentage of papers publishedin the journal addressing toll road project financing models as

compared to the total publications in these journals is negligible.In a period of 15 years there are only 14 papers published and all ofthem of which 14 are published in 14 journals. This shows that,though there is an interest in addressing the toll road projectfinancing models but the total research is very less.

Table 1. List of Journals Reviewed and Number of Papers for the Period1999-2013

Name of Journal Number of paperspublished

Infrastructure Project FinancingThe Journal of Structured Finance 1Finance and Investment in Japan 1Journal of Financial Management of Property and Construction 2Public Finance and Management 1Transportation 1Australasian Transport Research Forum (ATRF06) 1Brookings-Wharton papers on Urban Affairs 1The IUP Journal of Infrastructure 2Journal of Construction Engineering and Management 1Engineering, Construction and Architectural Management 1Built Environment Project and Asset Management 2Economics & Regulation ManagementNetwork Spatial Economics 1Journal of Economic Cooperation and Development 1Regulation 2St. John’s Law review 1International Journal of Management Research and Review 1Management Research and Practice 1Public Administration Research 1OthersThesis Master MIT 1Kementerian Keuangan Paper 1

b. Economics & Regulation Management

These journals specifically address the financing models in tollroads, which may also cover infrastructure project financing issues.All of 8 papers published in these journals only address theinfrastructure project financing (IPF). This finding indicates that

there has been little interest of economical and regulationmanagement researchers in addressing project financing problems intoll roads. Dividing the number of papers by the number of coverageyears results in, on average, less than one paper published a year inthis specific area. Moreover, one-forth (2 out of 8) papers appearedin a specific journal (Regulation) shows that there is an overall gapin the Infrastructure Project Financing Journals to address theproblem.c. Other Journals

Although not focused on TRFMs or IPF issues, these journals havepublished papers covering toll road projects due to the financingmodels issues. The fact that only two papers out of 24 are publishedin these journals shows that there are few papers on IPF in economics& regulation management journals. On the other hand, none of thejournals have published more than one paper over 14 years, showingthat the issue of IPF in TRFMs is not included in the objective ofthe these journals. The publication of papers in these journals maybe attributed to the broad boundaries of some of the journals or tothe lack of a dedicated journal for TRFMs. Figure 3 shows the trend of TRFMs literature over the last 14

years. It presents the annual publication frequency of the totalpapers combining all the issues addressed. It is evident from Figure3, that lately there is an increasing interest in addressing theissues in toll road project financing models. As the graph is notlinearly increasing over the years so this growth may not be fullycredited to the increase in number of total publications every year.Moreover, the sudden increase in the number of papers from the year2006 can be attributed to the global factors that attracted theattention of researchers and practitioners to this field whichincludes the project financing crises. Since the year 2006, the tollroad project financing models has shown a drastic decrease to bezero. The increase of toll road project financing models had a fourtimes impact from the year 2008 to 2009. Therefore, the increase inthe number of research papers seems to be a reflection of thesecritical factors. These factors did not seem significant in theperiod 1999-2004 as the maximum number of papers published in anygiven year is two which is quite less. It is interesting to note thatthough toll road project financing models was always a major concernbut only recently gained the attention of researchers. With the

increasing population there is a high possibility that this issuewill get more attention in future.

1999

2001

2003

2005

2007

2009

2011

2013

0

2

4

Year

Numb

er o

f Pu

blic

atio

ns

Figure 3. Trend of toll road project financing models literature across theyears

The volume and continuity of research papers as shown in Figure 3will surely attract the attention of publishers and editors towardsthe lack of a journal addressing the toll road project financingmodels issues. The effect of lack of a specific journal shall reflectin future special issues addressing project financing models. It isalso found that a lot of papers have addressed a country specificissue. In these country-specific publications, the USA and India amajority of the attention, with a limited thrust on China, Japan, andIndonesia. One of the reasons for this may be the infrastructuresector in the that countries which can fund the research ininfrastructure project financing as compared to the toll roadinfrastructure sectors in other countries. Table 2 presents thedetails of the country-specific studies. The studies which are notvery specific to any particular country or region are categorized asgeneric. This is not at all surprising as it is quite similar to thecountry rating according to SCImago (www.scimagojr.com). The littledeviation is explicit due to the economical orientation of the fewcountries towards toll road infrastructure. Besides, the toll roadproject financing models has resulted in most of the studies as“generic”, i.e. addressing no specific country.

5. Classification based on problem contextWe now consider the papers addressing the toll road project

financing models to classify and review the research based on

infrastructure project financing issues causing financing gap.According to the categorization by the practitioners andacademicians, the major issues are classified into three categoriesof:

(1) Financing;(2) Delivery system; and(3) Revenue.

Table 2. Number of studies across countriesCountry Number of Studies

USA 7UK 1China 2Korea 1Japan 2Hong Kong 1Canada 1Australia 1India 5Turkey 1Indonesia 2

In addition to these three major categories of infrastructureproject financing there are certain other issues which areoperational in nature but do not fit into any of these threecategories. For example, such as feasibility of toll road. This issuehas been put together in a fifth category called “others”. A reviewof literature on these issues is presented in the following subsections.a. Financing

Financing problem is one of the most researched topics ininfrastructure project investment. In developing countries,infrastructure financing is the most problem especially inmetropolitan areas [28]. It becomes even more important in case oftoll road project financing due to investment horizon. This sectionclassifies and reviews the literature on financing problem for tollroad project financing. Key findings from the financing literatureare presented later in this section.

Based on literature review, found that there were financingproblems in traditional toll road such as: in concession, where aninvestment combination was loaded in front-loaded investment [29],how to get a Congress support as attractive alternative politicallyas toll road financing problem [30], inefficiency of infrastructureprojects [31], financial risks for toll road project financing havenot been identified, quantified, and evaluated [7], the improvementof toll road development was not similar with rapid transportationdemand and economic growth [32], lack of security stipulationunderstanding from lenders like a bank [33], lack of equity amountestimation and rate of return on equity [34], lack of equityfinancing and corporate bond market option, and often overlapregulation [35], urban infrastructure investment financingproblem[36], long-term investment funds at infrastructure sectorsincluding toll road [37], relationship between risk factors andequity participations into structure of BOT contract equity [38],financing instruments that could be used to toll road financing [39],State’s finance limitation to finance toll road infrastructureproject [40], no internationally recommended best practice in tollroad financing public-private partnership [41].b. Delivery system

Researchers have presented several models for financing problemanalysis. Several reviews present the status of research fromdifferent perspectives is delivery system. For example, they focusedon delivery system in private finance initiative (PFI) [42],comparison of cost efficiency based on project delivery such asdesign-bid-build (DBB), Construction Management at-fee (CM-at-fee),design-build (DB), design-build-operate (DBO), and design-build-(finance)-operate (DBFO) for toll road management [43], relationshipbetween the public private partnership and leverage lenders [44],toll road project delivery process was slow and decrease of newrevenue [45].c. Revenue

Over the past several decades, various models dealing with therevenue of toll road has been studied by the researchers. Theseresearchers tried to model the deteriorating characteristic of thetoll road financing for revenue management. Some of them are: acomprehensive literature survey of revenue models [46]; and low tollroad revenue and congestion [47]. It was found that the revenue oftoll road is also considered by some of the authors.

d. Others

This section discusses the issues which come in the problem contextdomain but could not be included in any of the three categories asdescribed above. For example, the issues such as case studies, tollroad feasibility [48] and toll road investment [49].6. Classification based on methodology The literature on TRFMs may also be classified on the basis of

methodology used in: mathematical modeling, simulation, empiricalstudies, case research, action research and general. This helps us tounderstand TRFMs from a different perspective of methodologicalpoint-of-view. This section maps the methodology used vis-a`-vis theproblem context of the TRFMs. Table 3 presents the mapping of thepapers addressing any problem using the corresponding technique. Itis to be noted that any methodology used to solve a problem dependson the problem itself, the availability of data and computationalresources, and the comfort levels of the researcher in using thatparticular methodology. Thus, the mapping is done to find therelation of the methodology to the problem.Table 3. The number of papers addressing any issues using the corresponding

technique

  Revenue DeliverySystem Financing Others Total

Modeling 3 3Simulation 2 2Empirical Studies 1 1Case Study 1 1 5 2 9Action Research General 2 7 9

Total 1 4 17 2 24

According to Dyn [50] modeling is “an activity, a cognitiveactivity in which we think about make models to describe how deviceor objects of interest behave.” Singh [51] said that there are threecategories of models as follows, physical models, mathematicalmodels, and computer models. Meanwhile mathematical models can becalled simulation, but physical models cannot be called simulation.So, a modeling is “the general name whereas simulation is specificname given to the computer modeling.” This shows that there are 3papers focus on financing and modeling methodology [38, 46, 49].

Meanwhile, there are 2 papers focus on financing and simulationmethodology [7, 34]. According to Kosorok [52], empirical process methods are “powerful

techniques for evaluating the large sample properties of estimatorsbased on semi-parametric models, including consistency,distributional convergence, and validity of the bootstrap.” However,from 24 papers which researched by the researcher, only one paperused empirical method [43]. In the TRFMs research, case studies have found special plane,

because case study research “involves the study of an issue exploredthrough one or more cases within a bounded system” [53]. There are 9papers at every focus used case studies methodology, such as [31, 33,36, 39, 44, 45, 47, 48, 51]. According to Marshal, Willson, and de Salas [54] action research is

the collaboration between researchers and practitioners to improve aproblem situation of concern. There are 9 papers at action researchgeneral methodology, as follows: [29, 30, 32, 35, 37, 40-42, 55].7. Classification Based on ProductThe literature of TRFMs can also be classified based on the produce

studied. As the produce is geography dependent, so availability ofgovernment or private funding of the produce’s origin affects theTRFMs. Table 4 represents the number of papers addressing an issuefor a particular product. It is evident from Table 4 that, mostlyfinancing models are considered as a single product and the problemsare addressed on an aggregate level, taking either all products as asingle product. This is mainly because the effect of a factor on theoverall toll road financing models was addressed by the overall tollroad financing models. There are few cases where individual factorsuch as private finance initiative has been considered. This may beattributed to the factor of specific factor such as user modeselection and endogenously route by focus of revenue study.Introduction to TRFMs, delivery system and financing focus have

gained most of the attention, with less attention towards revenue andothers focus. The co-ordination and integration related issues arediscussed generally in case studies, addressing produce at theindividual and aggregate level. Financing focus of TRFMs also havebeen studied on an aggregate, and in some cases on a disaggregatelevel. Papers discussing delivery system generally tried to find thecontractual of delivery system. But, papers also considered privatefinancing initiative, risk project financing, uncertainty of dynamic

transportation demand, securitization, earmarked tax revenue system,social policy and public law value, limited equity, real option,capital market, and SPV financial strength as a single product inmost of the cases. Other issues such as inventory management andtransportation have also been discussed, but only on an aggregatelevel.The TRFMs for all kinds of produce cannot follow the same strategy,

as the toll road financing has a high level of heterogeneity. Therate of deterioration and other physical conditions also vary to ahigh degree across produce, so delivery system and revenue conditionsshould also be different for all the produce. Table 5 shows theproducts studied vis-a`-vis geographical location. It is to be notedthat most of the research has taken place in developed countries andtoll road financing model oriented countries such as USA.8. Discussion and ConclusionThis paper presents a state-of-the-art literature review of TRFMs,

discussing major infrastructure project financing issues accountablefor toll road financing. The aim is to highlight the trends andopportunities in research addressing the TRFMs. To meet thisobjective, literature is collected from various databases over aperiod of 14 years (1999-2013). The literature is systematicallyreviewed and classified to provide a better understanding of theresearch in the last two decades. In order to maintain the rigor ofthe overall process, a structured and fit-for-purpose systematicresearch process is followed in both the collection and contentanalysis of the literature. The review process is inspired and guidedby the principles of [23, 25, 26], considering the advantages andignoring the disadvantages of the respective processes.A two-step process is followed for literature segmentation and

synthesis. First the literature is segmented according to thejournals, publications per year, and countries to get an overview.The journals are categorized into infrastructure project financingjournals, economics & regulation management journals, and otherjournals. It was found that out of 24 papers, 14 were published ininfrastructure project financing journals and 8 were published ineconomics & regulation management journals.

Table 4. The numbers of articles addressing an issue for a particularproduct

# Paper Product Revenue Delivery System Financing O thersGovernment build and operate toll road 1Toll Road Operation Corporate was listed in Exchange 1Toll Road Corporation was listed in Exchange 1Joint Operation with Foreign Corporation 1Regulator can determine maximum toll rate 1The least toll revenue present value during concession 1Fuel Tax 1Electronic Toll Payment 1

4 Private financing initiative 15 Risk project financing 16 Uncertainty of dynamic transportation demand 17 Securitization 1

Cost of finance 1Bankability 1Viability 1Affordability 1

9 Earmarked tax revenue system 1User mode selection 1Endogenously route 1Cost escalation 1Social time preference 1Early commissioning profit 1SPV was supported by sponsor 1Insurer to SPV 1Contractual fondation 1Counterparty exposure 1

14 Social policy and public law value 115 Limited equity 1

Interest rate cap 1Take out financing 1

17 Real option 1Budget from government and local 1Local income tax 1Land transfer fee 1Self-raised funds 1Foreign capital investment 1

19 Capital market 120 SPV financial strength 1

Viability gap financing 1Private equity funding 1Deep discount bonds 1Take out financing 1Sinking fund depreciation 1Advance Construction (AC) 1Partial Coversion of Advance Construction 1M atching Credit for Private Funds, M aterials 1Services Donated to FA Projects 1Bond and debt instrument 1ISTEA Section 1012 Loans 1ISTEA Section 1044 Toll Investement Credits 1Special benefit assessments 1State Infrastructure Bank (SIB) 1Tax increment financing 1Transit impact requirements 1Negotiated land leases 1Development rights 1Leasing/selling of existing facilities 1Turnkey 1Private donation 1Land Revolving Fund 1Land Capping 1Land Acquisitiin Fund 1The Infrastructure Fund 1The Guarantee Fund 1

24 Value for M oney 1

13

23

22

21

16

18

1

2

3

8

10

11

12

Table 5. The products studied vis-a` -vis geographical location

Country Number of ProductUSA 24UK 4China 9Korea 1Japan 2Hong Kong 1Canada 2Australia 1India 14Turkey 1Indonesia 6

The literature is also segmented according to the countries and itis found that most of the research is in the USA, India, China,Japan, and Indonesia with only a limited attention paid to thedeveloping countries. This is also evident from the fact that 60percent of the papers are addressing issues of developed countrieswhile only 40 percent are focused on developing countries. This isquite similar to the research trend in other disciplines with fewexceptions. But, it is believed that in the coming years, there willbe huge change in this trend, with a majority of researchpublications from Asian countries with growing economies such asIndia and China. These countries are one of the longest toll road. Itis found that the second longest of toll road in the world is China,45,000 km.In the second step, the literature is classified according to the

problem context, methodology, and product and geographical region foran in-depth analysis of the same. The research in TRFMs is in thenascent stage and is disintegrated into problem contexts. The studieshave addressed the problems in isolation with little attention to theinterdependence of the problems. This phenomenon can be attributed tothe fragmented nature of the TRFMs itself. Most of the problems are generally well studied and explored for

infrastructure project financing but have recently gained attentionfor toll road financing models. It is also implicit that the researchin specific problem contexts will continue to increase in the shortterm. Nevertheless, with the increase in efforts, the requirement for

integrative contributions will emerge to understand the overallphenomena of TRFMs. It is seen that the level of interest variesacross the problem contexts. There are a lot of context specificpapers, especially in delivery system and financing focus. Otherproblems such as revenue focus have been explored to some extent butvery few studies considered the toll road financing. Therefore, ahuge potential exists for exploring these problems in TRFMs.The literature was classified according to the applied

methodologies to find out the theoretical orientation of the field asa whole. From this analysis, it is revealed that most of the problemswere solved case study and action research general. Methods such asmodeling and simulation are confined to areas such as problemidentification and forecasting. Taking into account the relativeinfancy of the field, it is expected that in the future there will bean increase in use of other methodologies. Even cross methodologicalapproaches are expected considering the fragmented nature of theproblems. Best practices from the practitioners have not emerged inthe papers. This shows the lack of universally accepted practices andthe complex nature of the problem. With the increase in literature itis also assumed that best practices and advanced techniques willemerge as in the infrastructure literature.The classification according to the produce shows that, in a

majority of the cases all the toll road financing produce is assumedas a single factor, with only limited attention to the individualproduct characteristics. It is very important to study the produce atthe individual level given its factor. The consumption habits andclimate of any geographical location plays an important role indeciding the relative importance of the toll road financing to thatparticular region. The study of literature across the geographiesreveals that there is an increase in TRFMs research but it is mainlylimited to a few countries. It is interesting to note that thesecountries have almost the same ranking for research in all otherdisciplines (www.scimagojr.com). There are a few exceptions such asIndonesia due to its commitment towards infrastructure. There is aneed for research to be replicated and studied in the developingnations which are among the biggest financing models of toll roadinfrastructure. Table 6 shows the result of state-of-the-art of literature reviews

on project financing models in Indonesia, all of them come from themapping of problem context to methodology and to product shows aclear picture of the link of product-problem-methodology.

Table 6. The Result of State-of-the-art of Literature Review on Toll RoadFinancing Models in Indonesia

Author's Name Variable of Financing ModelsNambu [32] Earmarked tax revenue system

Srivastava, Lakhmaniand Sikroria [35, 39] Take out financing

Lakhmani and Sikroria[39] Deep discount bonds

Xueming [45] Tax increment financingXueming [45] Land leasesXueming [45] Deferred DebtXueming [45] Private donation

Financing model of earmarked tax revenue is funds which obtainedfrom vehicle tax and fuel tax. The revenue utilized for landacquisition, financial costs, or legal cost in the phases of pre-construction and construction. Successful countries has ever appliedthis model was Japan and USA [32,36, 56-60].Deep discount bonds financing model is funds which obtained from

financial markets debt with zero coupon bonds. Successful countrieshad ever applied this model was USA, they borrowed 1.5 billion USdollars for infrastructure development [39, 61- 63].Take out financing (TOF) model is funds which obtained by

financial institutions which takes over bank lender because ofconstruction duration over 10-15 years, while the bank lenders areonly able to provide a loan of up to 5 years. Successful countrieshas ever applied this model was India, where financial institutionssuch as the India Infrastructure Finance Company Limited (IIFCL) tookover the loan from the bank [35, 64].Tax increment financing (TIF) model is funds which is obtained base

on land and building tax (PBB) and tax object sales value (NJOP)difference around toll road building between before and after tollroad construction [45, 65- 67]. Financing model of land leases is funds which obtained from leases

of the property and land property of toll road during the operation[45, 68-70].Deferred debt financing model is funds which obtained by suspension

of debt payments, and it is paid at operational phase when thefinancial statement is positive [45, 71].

Finally, the state-of-the-art of TRFMs from a holistic perspectivecould be understood with the classification of this paper. Thismapping may be used as a framework to facilitate the work of managersand researchers addressing the TRFMs. It may serve as a frame ofreference to decide a suitable methodology for a given problemcontext. The mapping of products to geographies gives the insightsabout the real-life problems. The problem-methodology mapping helpsin understanding the way in which these problems are addressed inother parts of the world. This can help the practitioners analyze thesimilarities and differences from other contexts and guide them tobuild, modify, and practice new solutions.

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