Developing Public-Private Partnership Model with Blockchain-Based Crowdfunding Concept for Port City Project

Port-city development is believed as a strategy to increase regional economic growth by improving the welfare of coastal communities, particularly in the archipelagic countries. However, this development needs huge investment to construct both its physical and social infrastructure components. Therefore, the participation of the private sector in the financing aspect is encouraged to improve the project viability and enhance the performance of the capital budget. This research aims to develop an alternative public-private partnership (PPP) model that can attract the interest of both institutional and individual private investors, by proposing financing model that incorporate the crowdfunding method. To achieve its objective, this research adopts both qualitative and quantitative methods conducted in three stages, by firstly carrying out desk study and benchmarking to develop the crowdfunding-based PPP financing scheme, and followed by life-cycle cost (LCC) analysis in the next stage, to examine the financial feasibility of the proposed scheme by taking into account the initial cost, operation & maintenance, and revenue. Lastly, along with an institutional scheme considering the sharing of investment and responsibilities between private companies and individual crowdfunders, this research also formulates the workflow of the transactions conducted in the crowdfunding framework built in the Blockchain platform. The results of this study show that the crowdfunding-based PPP model is feasible to be developed in the investment of landed housing projects of the port-city development, with 15.54% of the internal rate of return obtained from the implementation of the proposed financing mechanism.