Journal of Civil Engineering and Planning (JCEP)
Vol. 6 No. 1 (2025)

Pekanbaru Town Square Development With Concept Mix Use Building (Shopping Mall, Hotel, Condotel, Convention, Sport Centre)

Kurnain, Ahmad (Unknown)
Bambang Supeno (Unknown)
Muhammad Yazid (Unknown)
Rahmat Tisnawan (Unknown)
Rizki Ramadhan Husaini (Unknown)



Article Info

Publish Date
03 Jun 2025

Abstract

This study assesses the financial feasibility of a privately financed infrastructure project under a Build-Operate-Transfer (BOT) scheme with a total investment of USD 76 million. The investment is distributed over a three-year construction phase, followed by a 30- to 60-year operation period generating annual net profits of USD 8.64 million. Key financial metrics including Net Present Value (NPV) and Internal Rate of Return (IRR) are utilized to evaluate the project. The results indicate a negative NPV of approximately USD -14.85 million for a 30-year operation, suggesting the project is not viable under a conservative time horizon. However, extending the operation to 60 years yields a positive NPV of USD +23.8 million and an estimated IRR of 11.7%, surpassing the assumed discount rate of 10%. These findings highlight the importance of operational duration in BOT projects and suggest that long-term operation is essential to achieve financial sustainability. Recommendations include extending the concession period and optimizing cost structures to enhance investment attractiveness.

Copyrights © 2025






Journal Info

Abbrev

jce

Publisher

Subject

Civil Engineering, Building, Construction & Architecture Control & Systems Engineering Engineering Transportation

Description

JCEP is an article about research activities with the theme of study of Civil Engineering. Published articles are findings or reflections from research activities that are disseminated for practice by relevant stakeholders. Dissemination in articles published by JCEP is not limited to ideas, methods ...