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The purpose of this paper is to investigate the outcomes of Indonesian power projects as representative projects of Asian emerging economies that were procured via public-private partnerships (PPPs) and traditional public sector procurement. Power generation infrastructure delivery in emerging economies frequently seeks private participation via PPPs as one of the key mechanisms to attract private finance. Undertaking a comparative benchmark study of the outcomes of Indonesian power projects provides an opportunity to explore the historic evidence as to whether PPPs deliver better outcomes than traditional public procurement in emerging economies.

This paper reports on a study of the performance of 56 Indonesian power projects procured via either PPPs or traditional procurement. First, it focusses on project time and cost outcomes of power plant facility during construction and commissioning and then extends this comparison to consider the operating availability of power plants during their first two years of operation.

The results indicate that PPP projects had superior time and operating availability to those procured traditionally whereas no significant differences were identified in the cost performance between PPPs and traditionally procured projects. These findings highlight the importance of adopting policies that are supported by broader sources of international financiers and high quality power plant developers.

The quality performance analyses of projects (based on equivalent available factor indices) were limited to the power plants in the Java-Bali region where the majority of projects are large scale power plants.

This study provides an empirical basis for governments of emerging economies to select the most beneficial procurement strategy for power plant projects. It highlights the importance of selecting experienced providers and to adopt policies that attract high quality international project financiers and power plant developers. This includes the need to ensure the commercial viability of projects and to seriously consider the use of cleaner power technologies.

This study is the first to compare the outcomes of power projects in Asian emerging economies delivered via PPPs against those delivered by traditional public procurement that includes consideration of the quality of the delivered product.

This case deals with steps taken by NTPC in construction and project management in 500 MW power plant. The project have several innovative ways of managing challenges, in land acquisition, design, implementation, contract worker management, enforcement of safety rules, managing regulation iand in team building in leadership. A suitable case for site management, it shows in spite of being a public sector undertaking, how the project was constructed in record time of 42 months.

The purpose of this paper is to understand the risk‐return profile of merchant power plants (MPPs) as compared to power plants with off‐take agreements in the Indian context.

Information from the literature was analyzed to identify major risks associated with MPPs. Literature pertaining to risk analysis of capital investments and simulation technique to analyze risks was studied. Financial models for a power plant with off‐take agreements and that for an MPP were developed and risks have been analyzed by incorporating uncertainties. The risk analysis was performed with the application of stochastic simulations using the Monte Carlo technique.

The results indicate that risk‐return profile differs significantly for a MPP as compared to a power plant with off‐take agreements. The model indicates that equity internal rate of return (IRR) for MPP ranges between 49.33 and 0.43 per cent with mean IRR values ranging between 28.86 and 13.53 per cent for different scenarios. The mean equity IRR for a comparative power plant with off‐take agreements is 14.83 per cent.

The project financial models are developed using typical values for the Indian context. The robustness of the results can be improved by considering project‐specific variables in the financial model. Owing to limited availability of past data, power price fluctuation scenarios have been generated based on expert opinion. When additional data on power price become available, these could be incorporated in the simulation analysis.

MPP is a new concept for India. There is very little research in this area. This paper makes an attempt to understand the financial risk and return from MPPs in more detail.

General Management/Strategy.

Post-graduate/MBA.

Case A: Mr Grandhi Mallikarjuna Rao, founding chairman of GMR, was considering a proposal to bid for an upcoming international airport in Hyderabad, India. The strategic move would have marked GMR’s foray into the Indian airport infrastructure sector. GMR had been involved in the development and operation of power plants and had thrived on public–private partnerships for all its projects. Mr Rao is thinking: Should GMR make another major investment in infrastructure development by bidding to build the airport in Hyderabad, India? Further, how should the organization prepare itself for this strategic move? Case B: On April 4, 2013, the meeting of GMR’s Group Executive Council (GEC) was scheduled to take place. Srinivivas Bommidala, G.M. Rao’s son-in-law and Chairman of GMR’s airports business, was gearing up for the meeting. The meeting was called to discuss a proposal for bidding for an upcoming airport project in the Philippines. It had been more than a decade since GMR entered the airport infrastructure sector. The organization had built substantial airport operating expertise during that period. It adopted a joint venture (JV) model for expanding in the airport infrastructure business. Until now, the organization had always formed JVs for all its airport projects. JVs with existing airport operators were necessitated by the bid conditions that required a certain minimum airport operating experience for qualifying as a bidder for various projects. In some cases, a JV with a local player helped GMR with market knowledge for functioning in a foreign market. GMR also used JVs to access the capabilities it lacked for operating in this sector and gradually learnt from its partners for building capabilities in-house. The group now had the required operating expertise in the sector to qualify as a bidder. One of the key issues the GEC was contemplating was: Whether GMR should continue to form JV for bidding for the upcoming project or should it go solo? Further, if it had to form a JV then, in which areas should it seek a partner?

Case A: To understand the relationship between key concepts in strategic management, including diversification, capabilities and core competence. To help students understand the various factors managers consider when deciding on the diversification strategy of an organization. To create an understanding of the organizational processes required to facilitate diversification into a new segment. To teach students how to evaluate a potential market opportunity that may require a firm to take on a diversification strategy. Case B: To help students understand how companies use alliances as growth strategies. To understand the rationale for formation of various alliances. To explore various factors managers consider when deciding on alliance strategy of an organization. To understand the challenges associated with using alliances as a strategic option. To understand the pros and cons of internal development (i.e. going solo) vis-à-vis strategic alliances.

CSS 11: Strategy.

In the wake of the December 2015 Paris COP21 (Conference of Parties), and India's announced renewable energy commitments, Reliance Power is reviewing its renewable energy investments to arrive at a long term strategy for the role of renewable energy in its power generation portfolio and the financing of renewable projects. The case reviews the Indian government's policies to promote renewable energy; the evolution of the renewable energy sector; and Reliance Power's financing of renewable energy investments. The case requires identification of alternative long term strategies and their financing implications. This case serves as an introduction to renewable energy from the perspective of Reliance Power, a large private power generator of the country. These projects also provide a learning opportunity for Reliance Power to deal with fast evolving renewable technologies.

The purpose of this paper is to examine the Chinese media’s performance on reporting the issue of waste incineration power plants. The authors analyze the role of media in supervising relevant agencies and meeting the public need for related information.

This paper provides a content analysis of media reports toward waste incineration projects that follow the anti-incinerator event that occurred in Panyu district of Guangzhou city in 2009. The sample of this paper is based on 469 news reports that were released on the state-level search engine “ChinaSo.com” from January 2010 to June 2016.

Chinese media did not continue to focus on waste incineration issues after the anti-incinerator event in the Panyu district and there were only a few news reports about this topic. News reports of the information disclosure category accounts for the largest proportion but lack a depth of explanation. The proportion of news reports of media supervision and popular science information categories is relatively small.

This paper is a pilot study of the media’s reporting characteristics on waste incineration issues. There are some shortcomings in terms of sample selection and analysis, more in-depth assessment will be implemented and improved upon the future research. This study highlights the importance of media reports before or after relevant events in examining the media’s social function. Besides, this study provides a new analytical idea for assessing the functions of the media on social public issues through media reports and the conclusions of this study have certain practical significance for the media to improve report behaviors.

This paper selects media reports on waste incineration power plant after the anti-incinerator event in Panyu district as media industry could pay much attention to relevant topics before the beginning of conflict events and continue tracking reports even after the events subside. This paper points out that Chinese media might increase sustained attention to waste incineration issues, strengthen the depth of interpretation, increase the supervision of relevant agencies, and enhance the relevance of the news reports to the public.

The purpose of this paper is to increase understanding on stakeholder influence in large projects, using nuclear power plant projects and a governmental stakeholder that influences them as the empirical example. The authors focus on examining the means used by the stakeholder to influence the projects.

This paper adopts the descriptive single case study approach, using data from 18 semi‐structured interviews. The authors interviewed experts at a governmental stakeholder organization, but in order to gain insight from outside the governmental stakeholder, they also interviewed two other organizations: an energy company, and the highest administrative ministry in the nuclear industry.

The governmental stakeholder bases its influence on regulations and laws. This paper points out the distinct means that are used by the governmental stakeholder to influence nuclear projects: means that restrain, and also means that enable and advance projects. Both types of means are used at the same time. Enabling means include, among others, allowing projects and firms to contribute to the very same regulations that control the projects.

Much of the earlier research emphasizes government influence as negative to projects, but this paper shows an example of a stakeholder whose influence also includes aspects that are beneficial for projects. The governmental stakeholder can also be understood as a stakeholder that combines two stakes: its own legal stake, and society's moral stake. In carrying society's stake in projects, the governmental stakeholder acts as an intermediary.

Government support plays an important part in risk‐return trade‐off of participants in privately financed infrastructure projects. Depending on the level of government support, risk‐return trade‐off of the private sponsor varies from project to project. Case studies on two of China's build‐operate‐transfer (BOT) power projects that were developed at different time periods illustrate that government support has a significant effect on both risk and return of the private sponsor. It is hoped that such understanding would help the private sponsor strike a desirable risk‐return trade‐off in structuring a BOT deal.

The purpose of this paper is to examine the formation of strategic networks between second-tier actors in the context of a construction megaproject. The research question addressed is: How do second-tier strategic networks form in high uncertainty projects?

This is a qualitative single-case study, which examines strategic network formation in the context of a nuclear power plant construction project. Focused interviews with parties involved or having an interest in the megaproject were used as the primary data collection method.

The conditions for network formation in a megaproject context are specified with a focus on the determinants of uncertainty. A total of six second-tier network types with different formation conditions and potential roles in the project are characterized.

Analyzing the prerequisites of strategic network formation and examining the characteristics of various networks (that are either planned, taking shape or existing between the companies) in this specific context creates a basis for further study of network formation over network levels.

The formation of strategic networks is critical for many actors in the construction and related industries who are willing to participate in large projects. With the help of our findings, managers are able to define opportunities to orchestrate early phase network formation processes in uncertain circumstances, such as megaprojects.

The contribution of this paper lies in the close examination of strategic network formation from the second-tier actor perspective under circumstances of high uncertainty related to the early phases of megaprojects. Likewise, the illustration of different types of evolving nets in different phases of uncertain projects offers a contribution to the present discussion on strategic nets.

The purpose of this paper is to analyze the environmental impact assessment of power energy projects in Latvia. Every industrial activity and procedure influences the environment and climate change: each to a lesser or greater extent. In Latvia, the Environmental Impact Assessment (EIA) procedure has been carried out for more than ten years, and during these years numerous impact assessments have been conducted. The main purpose of the EIA is to assess the possible impacts of the implementation of an intended activity, or planning document, on the environment and to consequently develop proposals for the prevention or minimization of negative effects. In turn, the project shall avert violation of the requirements specified in the regulatory enactments. Currently, particular global attention, including in Latvia, is being paid to two aspects of the energy crisis – energy dependency and climate change. The global experience has proven that with an increase in the consumption of energy, a deficiency of energy resources occurs. In this situation, public officials have increased the import of energy resources, rather than encourage a reduction of consumption. Consequently, the state becomes more dependent on imported energy resources. At the same time, scientists are researching alternative energy resources, and the development of new technology. Latvia is a country with limited resources. The development of the national economy is unthinkable without an increase in the production sector. In turn, the development of the production sector is connected with the intensification of production capacity and the resulting consequences to the environment.

The paper takes the form of a literature review and a case study.

The power industry in Latvia has acquired a stable position in the national economy. It is necessary to elaborate the common approach of EIA power projects. During the process of impact assessment, principles of Life Cycle Assessment (LCA) should be implemented, which enhance the quality and efficiency of the EIA. The use of LCA principles in the process of the EIA will allow the assessment of the designed activities and environmental impact of proposed alternatives to have greater objectivity.

The work concludes with suggestions on how to include the principles of LCA in the EIA procedure. This is to improve the impact assessment of energy projects.