Attractiveness of Transportation Infrastructure Projects to Private-Sector Financing: Assessing the Hierarchical Analysis, Risk Scenario Method

2000 ◽  
Vol 1732 (1) ◽  
pp. 12-21 ◽  
Author(s):  
Dimitrios Tsamboulas ◽  
Konstanzinos Panou ◽  
Constantionos Abacoumkin
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Transportation Infrastructure ◽  
Transport Infrastructure ◽  
Risk Allocation ◽  
Infrastructure Projects ◽  
The Public ◽  
Conflicting Objectives ◽  
Infrastructure Project ◽  
Private Financing

A method to identify the attractiveness for private financing of a transport infrastructure project is presented. The objective of the method is to assist the public sector in identifying the attractiveness of a transportation infrastructure project for private financing, highlighting the factors that tend to reduce such attractiveness and providing the means to examine the viability of alternative risk-allocation scenarios related to risks undertaken by the state or private sector. The method allows for the simulation of the private sector’s attitude toward risk, employing practices of risk assessment in investments. Its innovation lies in how the whole process is structured so that participants understand beforehand whether an agreement can be concluded and which factors involved are critical. A key property of the method is the ease by which priorities of different risk components are synthesized into a hierarchical form through pairwise comparisons. This method, although targeted primarily for the public sector, could assist both private and public stakeholders investing in transport infrastructure projects (termed private-public partnerships) to reach an agreement. Basically, it is an interactive process characterized by the conflicting objectives and judgments of both public and private sectors.

scholarly journals Grey Clustering Evaluation for the Cooperation Efficiency of PPP Project: Taking Beijing Metro Line 4 as an Example

2019 ◽  
Vol 2019 ◽  
pp. 1-13 ◽  
Author(s):  
Hui Sun ◽  
Yingzi Liang ◽  
Yuning Wang
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Evaluation Model ◽  
Evaluation Index System ◽  
The Public ◽  
Clustering Model ◽  
Grey Clustering ◽  
Public Products ◽  
Infrastructure Project

PPP model is an important model which provides public products or services based on the coordination between the public sector and private sector. The implementation of PPP model is helpful for relieving the stress of insufficient funding for public sector and improving the efficiency of resource allocation. Comparing with traditional infrastructure project, PPP project involves many stakeholders, and the cooperation efficiency during the different stakeholders impacts the results of the project directly. Thus, it is important to explore the cooperation efficiency of PPP project. Based on grey clustering model, this paper evaluates the cooperation efficiency of PPP project. An evaluation index system including 36 indexes is established based on the aims and objectives of three stakeholders (public sector, private sector, and passengers). A case study of Beijing Metro Line 4 PPP project is implemented to verify the validity and applicability of the evaluation model. And the results showed that the cooperation efficiency of Beijing Metro Line 4 PPP project is relatively high. The model also provided insights into the shortage of the cooperation efficiency of Beijing Metro Line 4 PPP project. As such, the results can assist all stakeholders in adjusting the cooperation efficiency.

Locating the public interest in mega infrastructure planning: The case of Sydney’s WestConnex

Urban Studies ◽  
2020 ◽  
pp. 004209802092783
Author(s):  
Glen Searle ◽  
Crystal Legacy
Keyword(s):  
Public Interest ◽  
Environmental Sustainability ◽  
Global Financial Crisis ◽  
Transport Infrastructure ◽  
Infrastructure Projects ◽  
Liberal Democracies ◽  
The Public ◽  
New Public ◽  
Infrastructure Project ◽  
The Global Financial Crisis

In Western liberal democracies the planning of mega transport infrastructure projects is guided by public interest claims typically expressed through legislation and political mandates. But with the infrastructure boom being observed in many cities since the Global Financial Crisis, and the need to address unprecedented levels of urbanisation, the level of politicisation directed at infrastructure projects draws attention to how the public interest is treated in the planning and management of complex mega transport infrastructure projects in diverse local contexts. Looking to Sydney, an advanced neoliberal city building the largest transport infrastructure project in Australian history, we examine how public interest is asserted in a way that reinforces legitimacy of the process and consensus for the project. Under these conditions, planners fail or are unwilling to raise additional or new public interest issues. The vagaries of public interest mean that in being open to interpretation the public interest can be easily captured by the interests of capital and of ruling politicians. This raises important questions for urban studies about the role governments and, in particular, public-sector planners can play in advocating for actually existing public interest issues such as environmental sustainability without it amounting to just rhetoric with no follow through.

scholarly journals Public Private Partnership in Transportation: The Case of the Washington State

2007 ◽  
Vol 32 (2) ◽  
pp. 53-60 ◽  
Author(s):  
Edward Murray
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Political Stability ◽  
Public Private Partnership ◽  
Transportation Infrastructure ◽  
Private Partnership ◽  
The Public ◽  
Design Build ◽  
The Us ◽  
The Government

While the world has changed dramatically in the last five decades or so, transportation has not been able to keep pace with the overall development. However, in order to ensure prosperity of a country or a state, it is imperative that the ability to move people and products must improve. This paper examines the status of transportation infrastructure and its funding in the State of Washington, USA and suggests some new approaches towards public-private partnership (PPP) in the area. In the process, the success and some of the challenges of PPP are also discussed. In the US, traditionally, people were not charged direct tax such as a toll for using the roads, the primary mode of financing transportation being gas tax. The new sources of revenue collection being developed include: Specific roadway pricing Mileage-based user fees Real-time variable rate roadway pricing. Traditionally, in the US, the public sector shouldered the main responsibility for managing transportation�acquire right-of-way (ROW), design, finance, operate, own, and maintain while the private sector was only allowed to build roads following all the regulation and permits introduced by the government. The reformed PPP model awards ‘design-build’ contracts on a competitive ‘best-value’ basis instead of the conventional ‘low-bid’ basis and thus turn over the design build responsibility to the private sector leaving with the government the financing and maintenance of the roads. The idea is to give road to everybody while allowing the private sector to earn some profit and the public sector to save some money. However, PPP could face a problem if: the traffic and revenue estimates are wrong traffic and revenue risks are taken by private sector but at a huge price construction costs are underestimated the people do not accept the proposition the PPP legislation is not favourable. For any infrastructure project such as transportation to succeed, what is most critical is a set of factors including feasibility, essentiality, reliable revenue forecasts, collateral, credibility, political stability, and transparency. Above all, the government has the responsibility to all its citizens while the private sector is accountable to its stockholders and business partners. What is therefore important is to see how the two parties meet their obligations while building a suitable transportation infrastructure.

scholarly journals Models of Financing and Available Financial Resources for Transport Infrastructure Projects

10.14311/290 ◽  
2001 ◽  
Vol 41 (6) ◽  
Author(s):  
O. Pokorná ◽  
D. Mocková
Keyword(s):  
Typical Feature ◽  
Public Domain ◽  
Transport Infrastructure ◽  
Financial Resources ◽  
Project Financing ◽  
Infrastructure Projects ◽  
The Public ◽  
Long Time ◽  
Infrastructure Project ◽  
Selection Of

A typical feature of transport infrastructure projects is that they are expensive and take a long time to construct. Transport infrastructure financing has traditionally lain in the public domain. A tightening of many countries' budgets in recent times has led to an exploration of alternative resources for financing transport infrastructures. A variety of models and methods can be used in transport infrastructure project financing. The selection of the appropriate model should be done taking into account not only financial resources but also the distribution of construction and operating risks and the contractual relations between the stakeholders.

Managing Transportation Facilities in Design–Build–Finance–Operate Partnerships

2013 ◽  
Vol 2345 (1) ◽  
pp. 92-99 ◽  
Author(s):  
Hui Wu ◽  
Zhanmin Zhang
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Transportation Infrastructure ◽  
Public Private Partnerships ◽  
Pricing Strategies ◽  
Infrastructure Development ◽  
The Public ◽  
Toll Pricing ◽  
Deterministic Dynamic ◽  
Design Build

In recent years, transportation planning has been challenged by an increasing need for infrastructure development, a shortfall of revenue from the public sector, and political trending toward deregulation of transportation infrastructure development. These factors have led to increased interest in privatization of transportation infrastructure and the development of public–private partnerships, such as design–build–finance–operate. Although the overall goal of a transportation infrastructure project is to provide safe, reliable transportation systems for the public, parties involved in public–private partnerships take different roles and responsibilities. The public sector leads in laying out the terms and standards to regulate the obligations between the state departments of transportation and private entities. The private sector makes capital investment to provide agreed-upon services as well as to assume various investment risks, including project operational and financial risks. Toll-pricing strategies are a key component for the public sector in regulating the operation of a public–private partnership facility and for the private sector in controlling investment risks. This study investigated the applicability of deterministic dynamic optimization models for determining toll-pricing strategies that can help improve mobility, secure the public interest, and attract investment from the private sector. A case study of a design–build–finance–operate project was completed. Results showed that the proposed model provides a useful tool to assist both the public and private sectors in making more informed decisions, including study of optimal strategies to seek investment return and determination of the predefined contract regulations.

scholarly journals Public-Private Partnership Projects in Bangladesh: The Performance of Public Sector

2021 ◽  
Vol 04 (05) ◽  
Author(s):  
Maruf Ahmad ◽  
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Satisfaction Level ◽  
Infrastructure Projects ◽  
The Public ◽  
Social Audit ◽  
The Government ◽  
The Cost ◽  
Weak Coordination ◽  
Structured Questionnaire

The government of Bangladesh recognizes public-private partnerships (PPPs) as a strong catalyst for implementing infrastructure projects. The study conducted to assess the performance of the public sector and measure the cost of service with service quality in infrastructure projects under PPP. The survey focused on 35 government and nongovernment officials from PPP implementing agencies and academicians using a structured questionnaire. The performance of the public sector was assessed with 16 selected indicators. Among them Performances of the public sector in case of land acquisition for infrastructure, exemption of taxes and import duties, linked project, addressing socioeconomic issues were good enough. The findings of the study also revealed that the public sector’s performances in coordination, environmental relationship and communications, interorganizational trust and satisfaction level of the private sector are low. Besides this cost of providing service under PPP projects are increases but customers are satisfied with the higher paid services. Considering the views that starting PPP with weak coordination, lower inter-organizational trust, lower satisfaction level of the private sector, the Government of Bangladesh should take initiative for improving trust through open dialogue with the private sector and through developing a social audit model for PPP implementation.

scholarly journals Indicators for Sustainable Demand Risk Allocation in Transport Infrastructure Projects

2020 ◽  
Vol 12 (22) ◽  
pp. 9650
Author(s):  
Athena Roumboutsos ◽  
Alenka Temeljotov-Salaj ◽  
Iosif Karousos
Keyword(s):  
Transport Infrastructure ◽  
Risk Allocation ◽  
Sustainable Transport ◽  
Infrastructure Projects ◽  
Potential Control ◽  
Multiple Factors ◽  
Factors Influencing ◽  
Infrastructure Project ◽  
Performance Results ◽  
Rules Set

Efficient risk allocation has been proven to be at the heart of effective and efficient infrastructure project operation. While most risks may be reasonably assigned in transport infrastructure projects, demand risk remains ambiguous due to the multiple factors influencing its appropriate allocation. The present research is a first attempt to introduce indicators as tools to guide contracting parties in assigning demand risk. The level of control, based on infrastructure characteristics and attributes, describes the potential control over demand an operator may have. The optimal demand risk allocation is seen as an assessment of the appropriateness of demand risk allocation effected. The indicators are constructed following accomplished rules set by supranational organizations. Furthermore, 51 project cases ranging different transport infrastructure modes from 19 European countries including projects delivered traditionally and as Public Private Partnerships were used to validate the indicators and assess their performance. Results show the potential of both indicators to guide governments, operators and also financiers in appropriately allocating demand risk in transport infrastructure projects. This optimality was shown to be related to more accurate traffic forecasts resulting in sustainable transport infrastructure as the project then delivers on its economic, environmental, and social/welfare targets.

scholarly journals Strengthening Public and Private Sector Collaboration for the Dumagat in Sta. Ines, Tanay, Rizal: Basis for A Four - Year IP Development Plan

2019 ◽  
pp. 370
Author(s):  
Ana Christina M. dela Cruz
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Community Organizing ◽  
Development Plan ◽  
Risk Allocation ◽  
Decent Work ◽  
Public And Private ◽  
The Public ◽  
Implementation Processes ◽  
Public And Private Sector

Providing a framework for exploring governance systems that range from policy or program-based inter-governmental cooperation (Makati and Tanay) to place-based collaboration with non-governmental stakeholders to public-private partnerships (PPP). Public-Private Partnership is geared towards financing, designing, implementing and operating facilities and services that are traditionally provided by the public sector. It embodies optimal risk allocation between  the parties  – minimizing cost  while  realizing project developmental objectives. Thus, the project is to be structured in such a way that the private sector gets a reasonable rate of return on its investment. This offers monetary and non-monetary advantages for the public sector. It addresses the limited funding resources for local IP development projects of the public sector, thereby allowing the allocation of public funds for other local priorities. The collaboration is geared for both sectors to gain improved efficiency and project implementation processes in delivering services to the IP community. Most importantly, it emphasizes Value for Money – focusing on reduced costs, better risk allocation, faster implementation, improved services and possible generation of additional revenue. A Four - year Indigenous People (IP) Development Plan for the Dumagat community is a concrete response to the United Nations’ 17 Sustainable Development Goals. Grounded in a vision that aims to transform our world - UN aspires to build a world free of poverty, hunger and disease, in which every woman and every girl enjoys full gender equality, where the environment is protected and where all people have access to quality education and decent work. The program is designed to create a sustainable community extension services for the IP community of Barangay Sta. Ines in Tanay, Rizal. The Dumagat community, characterized by lack of basic services, but open and willing to be organized to attain   genuine   and   holistic   development   is   the   priority   of   the   program.   In   the implementation, it will follow the different stages in community organizing to ensure the appropriateness of activities and training for community partners. Organizing the poorest of the  poor  can  lead  to  empowerment.  Also,  it  will  allow  them  to  become  pro-active  in ensuring the development

Mobility as a Service Operating Model to Enable Public Policy

2021 ◽  
pp. 036119812110266
Author(s):  
Christina Joy Ditmore ◽  
Angela K. Miller
Keyword(s):  
Public Policy ◽  
Public Sector ◽  
Environmental Impact ◽  
Private Sector ◽  
Public Good ◽  
Business Model ◽  
Operating Model ◽  
The Public ◽  
Equity And Access ◽  
Policy Goals

Mobility as a Service (MaaS) is the concept through which travelers plan, book, and pay for public or private transport on a single platform using either a service or subscription-based model. Observations of current projects identified two distinct approaches to enabling MaaS: the private-sector approach defined as a “business model,” and the public sector approach that manifests as an “operating model.” The distinction between these models is significant. MaaS provides a unique opportunity for the public sector to set and achieve public policy goals by leveraging emerging technologies in favor of the public good. Common policy goals that relate to transportation include equity and access considerations, environmental impact, congestion mitigation, and so forth. Strategies to address these policy goals include behavioral incentivization and infrastructure reallocation. This study substantiates two models for implementing MaaS and expanding on the public sector approach, to enable policy in favor of the public good.

Relationship between CSR motivations and corporate social performance: a study in the power industry in India

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Moumita Acharyya ◽  
Tanuja Agarwala
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Power Sector ◽  
Public And Private ◽  
Content Type ◽  
The Public ◽  
Self Interest ◽  
Public And Private Sector

PurposeThe paper aims to understand the different motivations / reasons for engaging in CSR initiatives by the organizations. In addition, the study also examines the relationship between CSR motivations and corporate social performance (CSP).Design/methodology/approachThe data were collected from two power sector organizations: one was a private sector firm and the other was a public sector firm. A comparative analysis of the variables with respect to private and public sector organizations was conducted. A questionnaire survey was administered among 370 employees working in the power sector, with 199 executives from public sector and 171 from private sector.Findings“Philanthropic” motivation emerged as the most dominant CSR motivation among both the public and private sector firms. The private sector firm was found to be significantly higher with respect to “philanthropic”, “enlightened self-interest” and “normative” CSR motivations when compared with the public sector firms. Findings suggest that public and private sector firms differed significantly on four CSR motivations, namely, “philanthropic”, “enlightened self-interest”, “normative” and “coercive”. The CSP score was significantly different among the two power sector firms of public and private sectors. The private sector firm had a higher CSP level than the public sector undertaking.Research limitations/implicationsFurther studies in the domain need to address differences in CSR motivations and CSP across other sectors to understand the role of industry characteristics in influencing social development targets of organizations. Research also needs to focus on demonstrating the relationship between CSP and financial performance of the firms. Further, the HR outcomes of CSR initiatives and measurement of CSP indicators, such as attracting and retaining talent, employee commitment and organizational climate factors, need to be assessed.Originality/valueThe social issues are now directly linked with the business model to ensure consistency and community development. The results reveal a need for “enlightened self-interest” which is the second dominant CSR motivation among the organizations. The study makes a novel contribution by determining that competitive and coercive motivations are not functional as part of organizational CSR strategy. CSR can never be forced as the very idea is to do social good. Eventually, the CSR approach demands a commitment from within. The organizations need to emphasize more voluntary engagement of employees and go beyond statutory requirements for realizing the true CSR benefits.

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