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 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.

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 Will Public-Private Partnerships Solve Nigeria’s Infrastructure Problems?

2021 ◽  
Vol 9 (1) ◽  
pp. 41
Author(s):  
George Nwangwu
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Public Private Partnerships ◽  
Public Infrastructure ◽  
The Public ◽  
Advantages And Disadvantages ◽  
The World ◽  
The Government ◽  
As If

Nigeria, like most countries around the world, has turned to Public-Private Partnerships (PPPs) to finance its infrastructure deficit. However, it appears that the government of Nigeria looks towards PPPs as the major solution to the country’s infrastructure crisis. In a sense PPPs are being sold to the public as if they were free, that the private sector would come in with its funds, provide the desired services and that the problem with the country’s infrastructure would automatically cease. This paper argues that this supposition is a myth and that the role of PPPs in the provision of public infrastructure is more nuanced than is being bandied around. PPPs are not the panacea to all of the country’s infrastructure problems and also are far from being completely free. It is however the case that if appropriately deployed, in most cases PPPs provide some advantages over conventional public sector procurements. This paper explores the different advantages and disadvantages of PPPs and suggests ways in which PPPs may be effectively used to improve the country’s infrastructure with reduced fiscal exposure to government.

scholarly journals Public Private Partnerships and possibilities of their using in the field of Ministry of Agriculture 

2012 ◽  
Vol 52 (No. 9) ◽  
pp. 397-400
Author(s):  
R. Jurčík
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Water Supply ◽  
Public Procurement ◽  
Legal Framework ◽  
Public Private Partnerships ◽  
Public And Private ◽  
The Public ◽  
Public And Private Sector ◽  
Private Venture

Public-Private Partnerships (PPPs) are based on co-operation between the public and private sector. The reason for using it is a lack of public financial sources. For this reason, in most PPPs the management and financing of the project is entrusted to the private sector. In the Czech Republic, the widest development area for PPPs in the scope of the Ministry of Agriculture is probably water supply. The further areas for using of PPPs in the scope of this Ministry are the following: forestry, flood protection, adjustment of water flow, security of water sources, builging of the strategic foodstuff store. Important attempts have been made within the last year to increase the implementation of PPPs in water supply. These attempts are based on operation models similar to the BOT (Build Operate Transfer) and the DBFO (Design Build Finance Operate). In addition, the Czech Parliament adopted a law No. 139/2006 Coll., on concessions procedure and concession treaty which entered into force in July, 1<sup>st</sup>, 2006 and which brings the legal framework for realisation of the PPPs. There are some legal barriers which limited wide using of the PPPs. It is in the case of public-private venture companies (the limitation is&nbsp; in public procurement law). Public-private venture companies &ndash; which refer to the situation where both the private and the public sector holds equity, and, consequently, the company is controlled by the private as well as the public sector &ndash; should be the ideal form of PPPs in the areas which are in the scope of the Ministry of Agriculture.&nbsp;

Digital Government

2011 ◽  
pp. 200-217
Author(s):  
Carole Richardson
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Service Provision ◽  
Public Private Partnerships ◽  
Digital Government ◽  
Contracting Out ◽  
The Public ◽  
Business Principles

The modern focus on the application of business principles to the running of government is unique due to an escalated emphasis on divesting the public sector of as many service provision responsibilities as possible. This divestiture is being accomplished through an array of arrangements alternatively described as privatization, contracting out, outsourcing and public/private partnerships. There are three fundamental challenges to this process: (1) defining those responsibilities which cannot and should not be turned over to the private sector, (2) ensuring that such arrangements balance both the risks and rewards between the parties involved, and (3) getting the best deal for the public. This chapter focuses on the second point: achieving a reasonable balance that should, if implemented successfully, result in that elusive “best deal.”

scholarly journals Relationship between pharmaceutical pricing strategies with price, availability, and affordability of cardiovascular disease medicines: surveys in Qatar and Lebanon

2019 ◽  
Vol 19 (1) ◽  
Author(s):  
N. Abdel Rida ◽  
M. I. Mohamed Ibrahim ◽  
Z. U. D. Babar
Keyword(s):  
Cardiovascular Disease ◽  
Public Sector ◽  
Private Sector ◽  
Purchasing Power Parity ◽  
Access To Medicines ◽  
Pricing Strategies ◽  
Power Parity ◽  
Public And Private ◽  
The Public ◽  
Medicine Prices

Abstract Background Cardiovascular diseases are the leading cause of death in Lebanon and Qatar. When lifestyle modifications prove insufficient, medication becomes a cornerstone in controlling such diseases and saving lives. Price, availability, and affordability hinder the equitable access to medicines. The study aimed to assess prices, availability, and affordability of essential cardiovascular disease medicines in relation to pricing strategies in Qatar and Lebanon. Methods A cross-sectional survey using a variant of the World Health Organization and Health Action International (WHO/HAI) methodology as outlined in “Measuring medicine prices, availability, affordability and price components” (2008), second edition, was adopted. Prices and availability of 27 cardiovascular medicines were collected from public and private dispensing outlets. For international comparison, prices were adjusted to purchasing power parity. Data was analyzed across multiple sectors, within and across countries. Results A total of 15 public and private outlets were surveyed in each country. Prices were more uniform in Qatar than in Lebanon. In the public sector, medicines were free-of-charge in Lebanon and priced lower than the international reference prices in Qatar. The ratio of medicine unit price to international reference price in the private sectors surveyed are significantly higher than the acceptable threshold of 4. This ratio of originator brands and lowest priced generics in Qatar were up to two and five times those in Lebanon, respectively, even after adjusting for purchasing power parity. However, prices of lowest priced generics in the private sector were at least 35% cheaper in Qatar and 65% cheaper in Lebanon than their comparative originator brands. Medicines were more available in the private sector in Lebanon than in Qatar, but only the originator brand availability in the public sector in Qatar exceeded the WHO target of more than 80%. While affordable in the public sector in Qatar, four out of thirteen medicines exceeded the threshold in all private sectors covered. Hence, only the public sector in Qatar had a satisfying level of availability and affordability. Conclusions Except for the Qatari public sector, medicine prices, availability, and affordability are falling short from targets. Key policy decisions should be implemented to improve access to medicines.

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.

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.

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