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Book part
Publication date: 23 May 2019

Yan Vaslavskiy and Irina Vaslavskaya

The chapter is devoted to the factors aimed at optimizing the partnership of public and private sectors in the sphere of public infrastructure development. In modern conditions of…

Abstract

The chapter is devoted to the factors aimed at optimizing the partnership of public and private sectors in the sphere of public infrastructure development. In modern conditions of economic slowdown and budget consolidation in Russia, the infrastructure has become the most important driver of economic growth and public–private partnership (PPP) – the most perspective form of cooperation of public and private investors of infrastructure projects. PPP interpretation as a structural relationship of economic system allows the authors to model optimal combination of formal and informal institutions in order to stimulate long-term economic growth. It becomes promising to model replacement of budget funds by private investment to ensure positive impact on the Russian development despite the budget consolidation. It could only be achieved in the case of formal institutionalization of appropriate conditions for private investors as to low transactional costs and attractive financial parameters. There have been determined some PPP standards connected with public infrastructure projects in order to reduce capital expenditures of the budget funds and increase the inflow of private investment. The authors have managed to obtain model estimates and graphic interpretation of government expenditures’ efficiency increase that could help to structure the fiscal conditions to induce positive multiplier effect as a result of PPP forms improvement in the public infrastructure development.

Article
Publication date: 11 October 2021

Bo Tian, Zizhao Wang, Chunhao Li and Jiaxin Fu

According to relational contract theory, relational governance has potential to improve public-private partnership (PPP) infrastructure project sustainability. The main purpose of…

1067

Abstract

Purpose

According to relational contract theory, relational governance has potential to improve public-private partnership (PPP) infrastructure project sustainability. The main purpose of this research is to investigate the association between relational governance and the sustainability of PPP infrastructure projects. Further, this study examines the mediating effect of managerial innovation and the moderating role of public involvement.

Design/methodology/approach

Research data were collected from 158 valid questionnaires completed by Chinese PPP professionals. Structural equation modeling (SEM) was then employed to test five hypotheses.

Findings

Results indicate a positive correlation between relational governance and PPP infrastructure project sustainability. This linkage is regulated by public involvement. In addition, managerial innovation plays a mediating role between relational governance and the sustainability of PPP infrastructure projects.

Originality/value

This study verifies the relationship between relational governance and PPP infrastructure project sustainability, as well as intermediary and regulatory factors, providing a new approach to achieving sustainability in PPP infrastructure projects.

Details

Engineering, Construction and Architectural Management, vol. 30 no. 1
Type: Research Article
ISSN: 0969-9988

Keywords

Case study
Publication date: 20 January 2017

David Besanko and João Tenreiro Gonçalves

Rede Alta Velocidade, SA (RAVE), the state-owned company responsible for planning and developing a major high-speed rail project in Portugal, must persuade both public officials…

Abstract

Rede Alta Velocidade, SA (RAVE), the state-owned company responsible for planning and developing a major high-speed rail project in Portugal, must persuade both public officials and lenders that the project is worth undertaking. It must also make a recommendation on the appropriate organizational form for the enterprise. Specifically, it must determine the role of the Portuguese government in financing and operating the high-speed rail network, with options ranging from full development and management of the project by the public sector to completely private development and management. Lying in between these two polar cases were a variety of hybrid models, often referred to as public-private partnerships (PPPs). Using data in the case, students have the opportunity to perform a benefit-cost analysis of the project. They also must think carefully about the optimal role of the government in a major new infrastructure project.

After analyzing and discussing the case, students will be able to:

  • Understand the nature of a global public good

  • Perform a back-of-the-envelope benefit-cost analysis of polio eradication

  • Discuss the appropriate strategy for eradicating an infectious disease

  • Apply game theory to analyzing which countries would be likely to contribute funds toward global polio eradication

  • Discuss the role of private organizations in the provision of global public goods

Understand the nature of a global public good

Perform a back-of-the-envelope benefit-cost analysis of polio eradication

Discuss the appropriate strategy for eradicating an infectious disease

Apply game theory to analyzing which countries would be likely to contribute funds toward global polio eradication

Discuss the role of private organizations in the provision of global public goods

Details

Kellogg School of Management Cases, vol. no.
Type: Case Study
ISSN: 2474-6568
Published by: Kellogg School of Management

Keywords

Article
Publication date: 1 March 2012

Sander Lenferink, Jos Arts, Taede Tillema, Marcelle van Valkenburg and Roel Nijsten

Traditionally, in the Netherlands, the procurement procedure for infrastructure does not start until the public decision-making procedure is fully completed. In the new…

Abstract

Traditionally, in the Netherlands, the procurement procedure for infrastructure does not start until the public decision-making procedure is fully completed. In the new procurement strategy, early contractor involvement is applied by carrying out the procurement procedure and the public planning procedure simultaneously. This article explores the first experiences and lessons learned with early contractor involvement in four Dutch infrastructure projects. It can be concluded that the new strategy adds value in terms of time gains, improved project control and more innovative solutions. However, to optimize early contractor involvement, the differences between the competitive procurement procedures and the open, cooperative public planning procedures need to be bridged.

Details

Journal of Public Procurement, vol. 12 no. 1
Type: Research Article
ISSN: 1535-0118

Article
Publication date: 1 June 2015

Steven De Schepper, Elvira Haezendonck and Michaël Dooms

The purpose of this paper is to offer a systematic assessment of the magnitude of transaction costs of public infrastructure delivery, based on the three attributes of transaction…

1296

Abstract

Purpose

The purpose of this paper is to offer a systematic assessment of the magnitude of transaction costs of public infrastructure delivery, based on the three attributes of transaction costs, being the asset specificity, uncertainty and frequency of a transaction.

Design/methodology/approach

Non-parametric tests were used to test the transaction cost differences between different procurement types.

Findings

The authors find empirical support, based on a sample of 172 public infrastructure projects in Belgium, that construction firms make higher relation specific investments to their transaction partners under a public-private partnership (PPP) than a under a traditional public procurement (TPP). In addition, the authors found that PPP transactions are burdened by a greater uncertainty and a less mature market than TPP transactions.

Research limitations/implications

Given the complexity of this research, the scope is limited to: a strict distinction between two procurement types, one geographical area, a limited time scope and a focus on the private sector. Hence, the authors suggest that further research broadens the scope of either one of these aspects in order to get a better understanding of the total transaction cost burden of the public infrastructure market.

Practical implications

This study offers policy makers form a better understanding of the transaction cost implications when evaluating different procurement types.

Originality/value

This paper serves as one of the first systematic comparative analyses of the magnitude and determinants of transaction costs for the delivery of public infrastructure.

Details

International Journal of Managing Projects in Business, vol. 8 no. 3
Type: Research Article
ISSN: 1753-8378

Keywords

Article
Publication date: 25 November 2021

Han Xiao and Shengyue Hao

In the past few decades, traditional project management theories mainly focused on quality, cost and schedule. However, with larger scale and wider influence of infrastructure

Abstract

Purpose

In the past few decades, traditional project management theories mainly focused on quality, cost and schedule. However, with larger scale and wider influence of infrastructure projects, especially in megaprojects, social problems have gradually become pressing issues in the field of project governance. As the public is the main body of society, public participation has attracted the attention from both the academic field and industry field. Despite people are gradually realizing the significance of public participation, a deeper and more systematic understanding is still needed to be developed in this field. Therefore, this paper aims to conduct a systematic literature review on public participation in infrastructure projects. Based on existing literatures, this paper draws a knowledge map and develops a research framework in this field. Also, this paper tries to provide some theoretical and practical directions for the future.

Design/methodology/approach

In total, 142 papers from Web of Science Core collection were selected to be used in this systematic review. Quantitative analysis of this paper is concentrated on the knowledge map with bibliometric tools. Qualitative analysis is concentrated on identifying the research framework.

Findings

This paper reviewed existing literatures and the results are as below. Firstly, the results show a knowledge map containing knowledge domains, knowledge frontiers and knowledge evolution of research fields in public participation. Secondly, the results indicate a research framework in this field, including situational dimension, implementation dimension, individual dimension and influence dimension. Moreover, each dimension has several research topics, respectively. Finally, according to the results, the paper proposes practical suggestions for stakeholders and research directions for further study.

Originality/value

It is the first paper to draw a holistic knowledge map and build up a multilevel framework for public participation in the field of infrastructure projects. This paper bridges the gap in both quantitative and qualitative identification of existing literatures in this field. Besides, this paper proposes some practical suggestions and research directions for further study and development of public participation.

Details

Engineering, Construction and Architectural Management, vol. 30 no. 2
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 19 September 2019

Khotso Dithebe, Clinton Ohis Aigbavboa, Wellington Didibhuku Thwala and Ayodeji Emmanuel Oke

The role of public–private partnerships (PPP) as a strategic initiative to improve and accelerate service delivery in the form of newly built and revitalised water infrastructure

Abstract

Purpose

The role of public–private partnerships (PPP) as a strategic initiative to improve and accelerate service delivery in the form of newly built and revitalised water infrastructure assets in developing countries cannot be over-emphasised. Hence, the purpose of this study is to assess and highlight the importance of critical success factors for water infrastructure projects delivered under public–private partnerships.

Design/methodology/approach

A survey design was used and a questionnaire was administered to stakeholders who have participated in delivering water infrastructure assets in South Africa. Out of 150 administered questionnaires, only 91 were returned and usable for analyses, representing a 61 per cent response rate. The data gathered were then analysed using descriptive and factor analysis.

Findings

The study revealed that thorough planning for project viability, high levels of transparency and accountability and a legal framework stipulating policy continuity are the CSFs for delivering water infrastructure projects under the PPP initiative. The findings emerging from factor analysis owing to a close variance revealed the importance of the following grouped factors, namely, public cooperation, project viability and policy and legislation enhancement.

Practical implications

From the results, it is clear that the public sector, as the facilitator of infrastructure development, should create an environment that is conducive for private capital through political will and commitment and the enhancement of policy and legislation where there is no or minimal private participation.

Originality/value

Adequate infrastructure investment from private capital promises to flourish economically and improve the living conditions of the public in the cities and the country at large. To further guarantee the reality of PPPs at a local level, the host government must adequately engage and enlighten the public.

Details

Journal of Financial Management of Property and Construction , vol. 24 no. 3
Type: Research Article
ISSN: 1366-4387

Keywords

Article
Publication date: 4 June 2024

Caiyun Cui, Tingyu Xie, Yong Liu, Meng Liu, Huan Cao and Huilian Li

This paper aims to explore the influencing factors of public perceived efficacy of emergency infrastructure projects based on the triadic interactive determinism, and analyze the…

Abstract

Purpose

This paper aims to explore the influencing factors of public perceived efficacy of emergency infrastructure projects based on the triadic interactive determinism, and analyze the relationship among these factors.

Design/methodology/approach

Based on the triadic interactive determinism, we explored the factors influencing public perceived efficacy of emergency infrastructure project and empirically verified the relationship among these factors and perceived efficacy by using data drawn from a questionnaire survey of 491 residents near Leishenshan Hospital, Jiangxia District, Wuhan, China.

Findings

Prior experience, emotional response, personal expectation, public trust, context message and interactivity level, namely behavior, individual and environment, affect the perceived efficacy of public emergency infrastructure projects.

Practical implications

The results offer an insight into public perceived efficacy of emergency infrastructure project from the perspective of antecedents in a triadic reciprocal determinism, which provides a reference basis for the sustainable development of the emergency infrastructure projects. This study also suggests valuable practical implications to government departments to improve the quality of administrative decision-making effectively.

Originality/value

Although existing studies have found some influencing factors of public perceived efficacy in general infrastructure, there is still a lack of systematic carding and quantitative description of influencing factors of public perceived efficacy of emergency infrastructure projects. This study bridges this gap by exploring the determinants and their influencing relationship of public perceived efficacy especially for emergency infrastructure projects.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 1 March 2015

Michael Regan, Peter E.D. Love and Jim Jim

Adversarial contracting methods are used for most public infrastructure procurement and timely delivery on budget remains a problem. In the past 20 years, OECD countries have…

Abstract

Adversarial contracting methods are used for most public infrastructure procurement and timely delivery on budget remains a problem. In the past 20 years, OECD countries have adopted a number of alternative procurement methods that are based on collaborative principles including public private partnerships, long-term outsourcing arrangements and relationship/alliance contracts. We review the theoretical principles that operate for both adversarial and collaborative contracting methods. We identify the characteristics of non-adversarial contracting methods such as the output specification, qualitative selection criteria, the alignment of incentives, discrete allocation of residual control rights, life cycle costing, and risk-weighted value for money measurement that are delivering better procurement outcomes for government.

Details

Journal of Public Procurement, vol. 15 no. 4
Type: Research Article
ISSN: 1535-0118

Article
Publication date: 19 February 2024

Ozan Okudan, Gökhan Demirdöğen and Zeynep Işık

The purpose of this study is to develop a decision-support framework that can be used by decision-makers to suspend public infrastructure projects. Additionally, the study also…

Abstract

Purpose

The purpose of this study is to develop a decision-support framework that can be used by decision-makers to suspend public infrastructure projects. Additionally, the study also investigates how to select the most convenient infrastructure project for suspension.

Design/methodology/approach

The proposed framework includes an extensive set of factors and a novel comparison mechanism that can reveal the most convenient infrastructure project to be suspended. A comprehensible literature review and focus group discussion (FGD) sessions were conducted to identify factors that should be considered for suspension. Then, the neutrosophic analytic hierarchy process (N-AHP) method was used to determine the relative importance of the factors. Finally, the proposed comparison mechanism was demonstrated through a hypothetical case study and Technique for order of preference by similarity to ideal solution (TOPSIS) analysis.

Findings

Results showed that suspension decisions cannot be made merely based on “financial” factors. Instead, the other aspects, namely “Technical and managerial” and “Social and Environmental”, should also be taken into consideration. Second, factors related to the initial investment, cost of refinancing, cash flow, permits and approvals, insufficiency of bidders, degradation of the components, reputation, impact on stakeholders and criticality of the infrastructure were particularly elaborated as the most significant, needing the utmost attention of the decision-makers. Lastly, the results demonstrated that the proposed comparison mechanism has considerable potential to identify the most convenient infrastructure project for suspension.

Originality/value

Public infrastructure projects are often under pressure due to the inflationary state and economic stagnation of countries after major crises. The suspension decision for infrastructure projects necessitates comprehensible assessments to consider all consequences. Studies have widely investigated the contractual and legal aspects of project suspension in light of existing literature. However, little effort has been devoted to identifying the factors that decision-makers should consider before suspending a particular infrastructure project. Furthermore, existing literature does not investigate how to select the most convenient infrastructure project for suspension either. Thus, by developing a specific suspension framework for infrastructure projects by considering various factors, this study is the earliest attempt to examine the contract suspension mechanism of public infrastructure projects. In this respect, the study significantly contributes to the theory of contract management domain and has important managerial implications.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

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