PPP Projects Research Articles

Pre-contractual relational governance for public–private partnerships: how can ex-ante relational governance help formal contracting in smart city outsourcing projects?

In the literature on relational governance, it is often assumed that relational governance emerges primarily after formal contracting and acts as a functional supplement to a formal contract. In this article, we show that especially facing deep uncertainties, relational governance can emerge before the start of formal partnerships, in the form of trust-building, exchanging resources, and fostering flexibility. Based on a case study of a smart city outsourcing project, this article introduces a forward-extended framework of relational governance that captures the pre-contractual dimensions of relationship cultivation and their role in facilitating formal contracting. The study finds that pre-contractual relational governance facilitates formal contracting by reducing substantive, evaluative, technological, and procedural uncertainties in the project and helps the partners to design an elaborative contract, undergo an easy negotiation, adopt short-term contracts, and use simple monitoring and evaluation methods. The article thus argues that only understanding post-contractual relational governance is insufficient for exploring the relation between formal contracting and relational governance; facing deep uncertainties, it is necessary to understand how public and private parties develop their pre-contractual relationship and reduce the uncertainties before a formal contract can be signed. Points for practitioners Practitioners should realize that there is much room for relational governance in the pre-contractual phase of PPP projects when the projects are rife with various uncertainties. Public and private parties can take measures to build trust, foster flexibility, and create interdependence before a formal contract is signed. These ex-ante relational governance measures can facilitate formal contracting by reducing the various uncertainties, making a formal contract designable, making negotiation smooth and easy, and reducing the need for contract supervision.

PENINGKATAN PERAN SUKUK NEGARA DALAM PEMBIAYAAN INFRASTRUKTUR

Sukuk Negara is one of the sharia-based financing instruments issued by the government to meet the budget deficit. This study aims to identify priority issues in the development of Sukuk Negara to enhance the role of Sukuk Negara in supporting government infrastructure financing. From the results of data management using the Analytic Network Process (ANP) method, it is known that several priority problems include the issuance of Sukuk Negara financing limited to central government projects, the lack of quality and quantity of Islamic finance human resources compared to conventional finance, and the low interest in public investment in Islamic financial instruments. The priority of the solution is the need to make regulations that allow Sukuk Negara to finance PPP project financing schemes, increase innovation and quality of sukuk products so that they are able to achieve the set targets, and foster public investment interest. Thus, the strategy in supporting the government's infrastructure development is to increase the proportion of SBSN issuance, increase socialization and communication to the public, and diversify underlying assets.

Risk Assessment of Water Environment Treatment PPP Projects Based on a Cloud Model

Risk assessment of public-private partnership projects has been recently acknowledged as a crucial issue in infrastructure projects. Objective assessment of risk status is conducive to the establishment of scientific and reasonable management measures. The particularity of evaluating water environment treatment PPP projects means that random errors in the evaluation index and the threshold fuzziness of evaluation degrees are issues that require attention. This paper uses the Pythagorean fuzzy cloud model to process the randomness and fuzziness of the indicators. This study assessed the risks of an iconic water environment treatment PPP project inn mid-China. The risk ranks were evaluated in terms of five dimensions: political, economic, construction completion, operational, and ecological. Moreover, the results of the evaluation were compared with results derived using a regular cloud model. It was found that the Pythagorean fuzzy cloud model produced results consistent with the regular method, while also having the advantage of reflecting the randomness and fuzziness of the evaluation indicators. According to the evaluation data in this case, the project risks were ranked as follows: political > construction completion > operational > ecological > economic. The overall project risk was medium. This study’s results could provide technical support for water treatment PPP project risk assessment, indicator measurement, and statistical error control.

Analysis on Performance Evaluation of PPP Project for Comprehensive Improvement of Water Environment during Operation Period

Analysis on Performance Evaluation of PPP Project for Comprehensive Improvement of Water Environment during Operation Period

. Digitali¬zation of Public-Private Partnership Activation Processes as a Tool for Attracting Investment

Currently, one of the promising areas of economic development is digitalization in general and the formation of a high-quality information infrastructure in particular. This is especially true for the processes of activating public-private partnership – mutually beneficial interaction between the state and business. Due to the pandemic, investors are working with their portfolio more carefully, and it becomes more difficult to attract private funds. The purpose of the study is to analyze the information environment for PPP projects, namely, to assess its attractiveness and transparency for investors. The objectives are to analyze the distribution of concession agreements by investment volume, identify problem areas in the implementation of public-private partnership programmes of the Russian Federation, describe measures that contribute to improving the efficiency of public-private interaction. General scientific methods of analysis and synthesis were used in the work. The authors relied on such materials as current publications of domestic and foreign scientists on the research topic, materials of All-Russian and international management conferences, electronic reports of research centers and official statistics provided by government agencies. As a result, an interactive map is described rating of cities by the level of development of project activities in the field of public-private partnership. The interactive map is a powerful tool of digital transformation, unlike the annual published electronic and paper reports, more accurately reflects the situation on the PPP projects market at the current time, that is, the information remains relevant for each of the requests of each subsequent user. The article also presents the results of a comparative analysis of popular mapping programs as a definition of the most effective and sustainable platform for creating a service. By transforming the traditional information infrastructure in this way, it is possible to increase the investment attractiveness of subjects, and therefore affect the quality of life of residents of both individual cities and the whole country.

Research on the Integration of PPP Mode into China s Rural Public Infrastructure Construction: Based on the literature review method

In recent years, all parts of China have actually launched PPP projects based on their own regions. Practice shows that this project works well and plays an important role in promoting rural construction. However, there is no systematic research on the specific role of PPP model in promoting rural revitalization and development, and the research results are limited and scattered. In view of this, the author explores the role of PPP model in promoting the construction of rural public infrastructure based on the course knowledge and literature review. In the specific research, firstly, the research achievements of the academic circles around PPP mode are sorted out; Then, combining with China s own reality, it explores the role and influence of PPP model in promoting rural construction. Finally, on the basis of the existing research, the problems of PPP model in promoting rural construction in China are summed up, and some policy suggestions on how to solve these problems are put forward. This research is of great enlightenment and reference significance to the application of PPP mode in China and its practice in rural areas.

Study on cooperative strategies of rural water environment governance PPP project between companies and farmers from the perspective of evolutionary game

Study on cooperative strategies of rural water environment governance PPP project between companies and farmers from the perspective of evolutionary game

Socially responsible investment (SRI) Sukuk as a financing alternative for post COVID-19 development project

PurposeCOVID-19 has disrupted the economic development of both advanced and emerging markets. In addition to the stimulus packages to adjust the economic shock from COVID-19, regulators around the world are searching for innovative mechanisms to rebuild the economy. The purpose of this paper is to explore the potential of SRI Sukuk to serve as an Islamic social finance solution for development projects to mitigate the adverse economic effects of COVID-19.Design/methodology/approachThis study uses a mixed-method research framework. The authors use a systematic literature review following the recommendations of Bowen (2009) to identify critical challenges financing PPP projects using SRI Sukuk. In the next phase, the authors interview participants involved in an SRI Sukuk financed PPP project to get more significant insights on the challenges identified through the literature review process.FindingsThe authors identify the need for greater transparency for SRI financed PPP projects. Also, organisational and legislative challenges are limiting the attractiveness of SRI Sukuk as a financing mechanisms for post-COVID development projects.Practical implicationsSRI Sukuk is an emerging financing concept, and the use of such an Islamic financial instrument in financing development projects can serve as a viable alternative for policymakers in a post-COVID economic environment.Social implicationsThe successful completion of the development projects integrating the concept of Social Maslahah through SRI Sukuk in Malaysia could encourage other emerging economies to use such innovative Islamic financial instrument for economic development in post-COVID environment.Originality/valueThis paper is unique, as it provides evidence on the potential of SRI Sukuk to finance large scale public-private partnership projects.

Developing an AHP Risk Assessment Model for PPP Projects in Jordan

For the Jordanian government, meeting the growing demand for goods and services on its own is very difficult, leading to the increased dependence on other sectors of society. This research is aimed at understanding the critical success factors of local public-private partnership projects, identifying the most vital risk factors affecting projects, and establishing a quantitative model for risk assessment. The model can assist public-private partnership contributors by transforming the basic risk assessment principles into a more facilitated and systematic arithmetical based approach. The results showed that the risk factors with the highest ranks (respectively) are transfer phase, organizational risks, financing phase, project management risks, and feasibility study phase. The research is ultimately aimed at developing a framework for the risk evaluation of public-private partnerships within the construction industry in Jordan.

DEVELOPMENT OF STATE-PRIVATE PARTNERSHIP IN THE UDMURT REPUBLIC

The article discloses the essence of the public-private partnership mechanism, various approaches to its definition, both at the level of legislative acts of the Russian Federation and international organizations (UN). Different forms of PPP projects, their peculiarities and distinctive features are described in accordance with federal laws on public-private partnership and concession agreements. Instruments are being considered to support investors implementing investment projects of social infrastructure on the basis of PPPs, from federal and regional development institutions, as well as state authorities. An analysis of the level of PPP development in the Udmurt Republic is carried out, concrete examples of successful cooperation between private and public parties on the organization of financing and implementation of the project on the basis of public-private or municipal-private partnership are given. The use of this mechanism allows to obtain a significant economic effect due to the fact that there is a personal interest of a private person in obtaining income from a built or modernized facility. In addition, the social component plays an important role, PPP allows you to direct funds to those industries that are initially considered not promising enough to conduct business, but are often of key importance for the development of the region and ensuring a comfortable urban environment for the population.

Discussion on the Financing Management of PPP Project Funds

Discussion on the Financing Management of PPP Project Funds

RETRACTED ARTICLE: Game and coordination of diverse benefits in smart city PPP projects based on evolutionary game

RETRACTED ARTICLE: Game and coordination of diverse benefits in smart city PPP projects based on evolutionary game

Public-private partnership as a factor in the formation of the tourist potential of Russian territories

Public-private partnership is one of the most significant factors in the development of tourist attractiveness of Russian territories, a mechanism for improving the quality and differentiation of tourist services. The authors aim to determine the possibilities and limitations of using the mechanism of public-private partnership in the process of forming the tourist potential of Russian territories. The study used a set of general theoretical research methods: classification, systematization, etc. The key research methods are the analysis of documents on the research problem, as well as a focus group study, where the heads of Russian municipalities acted like experts. Barriers to the development of public-private partnership practices in tourism are the following: gaps in the legal framework, the complexity of project approval procedures, the lack of effective support for these practices in the media, problems of the investment climate, the orientation of PPP projects to large businesses with an insufficient number of successful commercial players in the tourism market. The results of the study show that the favorable investment climate of the municipality is the dominant factor in the development of public-private partnerships in the field of tourism. A comprehensive approach to the development of public-private partnership projects include the following measures: the formation of institutional conditions, information and consulting support for entrepreneurs, the removal of organizational barriers, the introduction of various types of benefits and preferences for business representatives.

A Critical Analysis of the Effectiveness of Public Private Partnership in Enhancing Good Performance of an Entity

Purpose: The purpose of the study was to investigate factors that cause ZINARA to adopt PPPs, challenges faced in implementing PPP at ZINARA, and the extent to which the resources support through PPP affect ZINARA’s performance in road services delivery. Design/Methodology/Approach: The study made use of qualitative and quantitative data. Questionnaires and interviews were used to collect data. Findings: The factors that influenced ZINARA to adopt PPPs were, the need for financial resources, infrastructure development, improving efficiency, reducing poverty, and fueling economic growth. ZINARA was faced with challenges in implementing PPPs with Group Five, and these were: contract renegotiation, performance enforcement, political acceptability, lack of sound regulatory framework, lack of fulfillment of crucial formation requirements, lack of shared vision and win-win relationship, multiple interests of key participants and conflict between public and private sector officials in PPPs. Practical Implications: PPPs have improved ZINARA’s performance in road services delivery through safe travel to road users, improved quality of roads, more facilities in the roads, improved efficiency in road services, clean and attractive roads, improved revenue collection, and improved cost management strategies. Originality/Value: It considers the fact that the effective production of PPP projects was significantly enhanced when the private sector was engaged at ZINARA.

Operation Performance Evaluation of Urban Rail Transit PPP Projects: Based on Best Worst Method and Large-Scale Group Evaluation Technology

Urban rail transit project is a kind of typical operating public project. Adopting the PPP model can alleviate local financial pressure and improve capital use efficiency. However, many existing urban rail transit PPP projects have fallen into the dilemma of cost overrun, schedule delay, and poor product quality. The lack of reasonable project performance evaluation is considered as an important cause. This research first clarifies the meaning and characteristics of project performance evaluation by comparing and analyzing several basic concepts and relationships. Secondly, an operation performance evaluation system based on urban rail transit PPP project of a three party is constructed from a multistakeholder perspective. Finally, the best worst method and large-scale group evaluation technology are used based on the comparison of multistakeholder evaluation application scenarios and evaluation methods. A quantitative model is constructed to evaluate the operating performance of urban rail transit PPP projects and is tested and explained by a specific case study. Most current studies generally focus on the earlier stage of project performance, and this article mainly discusses and researches the operation performance of PPP projects. There, suggestions are provided for the operation performance evaluation theory and urban rail transit PPP project practices. This article focuses on the operation performance evaluation of PPP projects.

Bankrupt PPPs: Is it really so bad? Case study of R-3 and R-5 toll motorways in Spain

PPP projects that go bankrupt come to early termination and are usually considered a complete failure. While it is true that this outcome is catastrophic for the project shareholders and creditors, it may not be the case for other relevant stakeholders, such as the granting authority, users and society as a whole. Assessing the global outcome of the project requires several detailed ex-post analyses, such as financial analysis, cost-benefit analysis and value for money analysis. Unfortunately, these analyses are seldom performed. To illustrate this point a case study was analysed: the PPP contract for two toll motorways (R-3 and R-5) and a segment of a ring road (M-50) in the vicinity of Madrid, Spain. The results show that the cost of the project to the Government, although higher than estimated on the pre-feasibility study, will be significantly lower than the first and hasty estimates. The project, despite a lower demand than initially expected, is still highly beneficial to society. Finally, using a PPP for this project has allowed the Granting Authority to avoid risks that have materialized with an important cost.

Risk sharing for PPP project in construction waste recycling industry in China.

With the deepening urbanization, urban renewal, and reconstruction movement in China, a large amount of construction waste has been generated. In order to ease the financial pressure on the government to deal with construction waste, introducing the PPP model in the construction waste recycling industry has become popular. Based on the theory of system dynamics, this paper studies the risks of using the PPP model in construction waste recycling industry. First, a causal loop diagram was depicted according to the interaction of the main risk factors. Then, using the system dynamics software Vensim, a dynamic model of the risks of the PPP project was constructed. The results show the following: (1) the PPP project in the construction waste recycling industry is profitable; (2) For the PPP project in the construction waste recycling industry, the tendering risk will break out in 6~7 years, the greatest impact on tendering risk is the cooperation environment risk, where cooperation environment risk entropy is increased by 50% and tendering risk entropy is increased by 53.66%; (3) Construction risks will break out in 7~8 years. The construction cost, construction delay, and design defects have the greatest impact on construction risks, where entropy is increased by 50% and construction risk entropy is increased by 19.30%, 19.25%, and 19.08%, respectively; (4) The operational risk has not broken out in 10 years and is expected to break out in 10 to 20 years. Raw material power supply, production technology level, and operations management efficiency have the greatest impact on operational risk, where entropy is increased by 50% and operational risk entropy is increased by 21.52%, 20.84%, and 20.76%, respectively. These results can provide suggestions and references for the risk management of PPP projects in China's construction waste recycling industry.

Improving the public administration of investment projects under 
 the public-private partnership (on the example of airport infrastructure development of the Russian Federation)

In the modern economy, very often there is the problem of lack of state funding in major infrastructure projects. In this regard, partnership between the public and private sectors of the economy is becoming a more effective way of solving problems related to the modernization of transport infrastructure, construction and provision of services, the development of urban areas. Especially of public-private partnership mechanism true for regional economies, where thanks to it there is a more dynamic development of local capital markets, goods and services. The study analyzed the conceptual apparatus, essence and forms of public-private partnership, identified the features and risks in the implementation of PPP projects, assessed the results of global and domestic experience in the use of public-private partnerships, developed recommendations for improving the procedures for implementing public-private partnerships in the field of development of the infrastructure of the Russian airport enterprises.

Study on the Readiness of the Regional Government of South Sulawesi for the Mamminasata Urban Railway Project with Non-State Budget/Regional Budget Financing

Non-Budget Financing The government raises alternative sources of financing to be used to contribute the financing strategic national infrastructure projects that have commercial value and have an impact on improving the Indonesian economy. One example of this scheme is PPP (Government and Business Entity Cooperation). The purpose of this study was to see the readiness of the South Sulawesi regional government in the Mamminasata Urban Railway Project with Non-State Budget / Regional Budget Financing. It is believed that the Public-Private Partnership Scheme with Business Entities (PPP) was believed to be alternative financing that can improve infrastructure development and the efficiency of development implementation which creates the quality of a product and service in the distribution of capital and risk as well as the competence of human resource expertise together. It was hoped that the PPP Project in the construction of the Mamminasata Urban Railway Infrastructure could become a way out in Non-State Budget / Regional Budget financing and become a solution by the National Mid-Term Development Plan (NMTDP) and Regional Mid-Term Development Plan (RMTDP) to achieve the construction of a 3258 Km railway line. The suggestion put forward into this study is the government needs to establish a transportation management body that integrates all modes of transportation and manages commercial areas following the authority of the PJPK in increasing revenue for an investment return on Availability Payment (AP).

RETRACTED ARTICLE: Evaluation of air pollutants based on embedded system and PPP project performance factors

In this paper, an air pollutant assessment and monitoring system based on arm series-embedded system S3C44BOX module is proposed. On this basis, this paper analyzes the annual data of PM2.5, PM10, CO, NO2, SO2, O3, and other air pollutants of 17 monitoring stations in C City in the past year. The results show that the air pollutants have air permeability. At the same time, meteorological factors, temporal and spatial changes, and air pollution factors are discussed. At the same time, this paper uses literature and expert interviews to determine the performance factors of PPP projects. PPP mode realizes the participation of social capital in infrastructure construction. We identified 34 factors and used a structural equation model to analyze the path of 333 PPP project performance factors. One of the main performance factors is to apply the results of air pollution assessment based on an embedded system to the research of performance factors of PPP project, so that this paper could successfully promote the effective implementation of PPP project. Through the continuous research of embedded system and its application in air pollution evaluation and PPP project performance, it can effectively improve the air pollution evaluation and PPP project performance.