Teaching Case - Buenos Aires-Colonia Bridge: The Project

Buenos Aires-Colonia Bridge: The Project


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  • Product Description

    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 two 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 the US$1 billion bridge could successfully be financed by tolls of US$60 per car.

    Learning Objective:
    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.

  • Other Details

    Publication Date: January 01, 1997
    HKS Case Number: 1400.0
    Case Author: Jose Gomez-Ibanez
    Faculty Lead: Jose Gomez-Ibanez
    Pages (incl. exhibits): 15
    Setting: South America
    Language: English
    _year: Older than 2000
    _pages: 1-15
    _geography: Latin America
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