Public Infrastructure Projects Research Articles

When politicians and the experts collide: Organization and the creation of information spheres

AbstractThis paper explores collaborative information behavior in the context of highly politicized decision making. It draws upon a qualitative case study of project management of a contentious public sector infrastructure project. We noted the creation of spaces for the development and exchange of information by experts and conceptualize these as information spheres. We postulate that these were formed to bypass power‐induced information behavior that excludes expert power, such as information avoidance. This approach contrasts with the expected project management and information norms, rules and behavior, however, provides a language that can be used to explain the phenomena of bounded information spaces which complement and may be used as a development of adjunct to small world's theory.

Take the Q train: Value capture of public infrastructure projects

Transit infrastructure is a critical asset for economic activity yet costly to build in dense urban environments. We measure the benefit of the Second Avenue Subway extension in New York City, the most expensive urban transit infrastructure project in recent memory, by analyzing local real estate prices which capitalize the benefits of transit spillovers. We find 8% price increases, creating $5.5 billion in new property value. Using cell phone ping data, we document substantial reductions in commuting time especially among subway users, offering a plausible mechanism for the price gains. The increase in prices reflects both higher rents and lower risk. Infrastructure improvements lower the riskiness of real estate investments. Only 30% of the private value created by the subway is captured through higher property tax revenue, and is insufficient to cover the cost of the subway. Targeted property tax increases may help governments capture more of the value created, and serve as a useful funding tool.

Impact Assessment for Sustainable Project Management And Pension Funds Projects Performance In Kenya

Sustainability is an evolving area of research and is grabbing the attention of corporations, research communities, and regulatory bodies worldwide which had enhanced its implementation. The prevailing trend towards economic growth in developing countries has resulted in a huge demand for delivering construction projects which in turn has overshadowed sustainability concerns. Consequently, project managers in developing countries are lagging in embracing the concept of sustainability in managing projects. Specific focus has been given to construction projects in the pension industry in Kenya. To address this challenge, the paper explored sustainable project management based on a comprehensive literature review through a desk review of numerous academic journal articles to evaluate pension funds projects performance. Three theories were used to provide a foundation for the sustainable project management practices: stakeholder theory, the Triple Bottom Line (3BL) concept which captures the essence of sustainability and theory of risk management. The study established that current project management practices of Kenyan Pension Funds do not always ensure project success that secure desired market returns on these investments. As the pension schemes are also expected to continue to invest in alternative assets given the broadening of the allowable investment categories and to take advantage of the public infrastructural projects under the big four agenda (RBA, 2021), it becomes paramount to identify and implement sustainable project management practices for performance of the pension funds projects. The outcome of this research showed that sustainability goals and environmental and social impact assessment contribute towards pension funds projects performance. The moderating effect of the regulatory framework was determined to be supportive towards sustainable pension funds projects performance.

Factors Influencing Governance Practices in Rural Public Infrastructure Projects: A Case Study of Rural Road Project in Malaysia

Rural public infrastructure projects are essential as a catalyst for balanced development between urban and rural as well as tools for enhancing the living standard of rural poor. This study focuses on the identification of factors that influence the governance practices in a rural road project in Malaysia. A single case study was conducted from the perspective of a stewardship theoretical lens on a rural road project in East Malaysia, and multiple sources of evidence were used for data collection. The study discovered four main factors, namely intrinsic motivation, altruistic empathy, effective leadership, and shared vision that influence project governance practices in this project. Thus, this article contributes to the understanding of interdependencies of these factors, which drives public officials in different project actors for effective delivery in this project context. The study findings are limited concerning the utilization of a single case study related to the rural road project and its contexts.

Mechanisms for protecting returns on private investments in public infrastructure projects

Despite the widespread attention for the private financing of infrastructure projects, actual empirical work on financing public-private partnerships remains limited. Especially the topics of return on equity and lenders’ cash flow control in relation to uncertainty are under-researched. The aim of this paper is to investigate and discuss the mechanisms applied by private financiers of infrastructure projects to protect their returns on investment. Using semi-structured interviews, the qualitative viewpoints of infrastructure financiers and their consultants on infrastructure investment are examined. The findings identify nine control mechanisms that financiers apply, including a range of asset and risk diversification portfolio strategies for their infrastructure investments, and reveal that they depend on governance mechanisms relating to the project environment, relations, knowledge and expertise. Hence, this study provides a better understanding of the actions and mechanisms applied to protect a return on infrastructure investments that leverage partnering strategies between public authorities and private investors in public infrastructure projects. This contributes to the debate on project financing under uncertainty and its implications for project governance in public private partnerships.

The Influence of Relational Capital and Social Capital on the Infrastructure Project Performance in UAE

Most managers believe that their current structures are effective or highly effective in achieving business goals by relying on the traditional capital. Yet, many infrastructure project organizations in the UAE revolve around traditional and functional structures which are lack both the flexibility required to adapt to the changing business landscape and the capability to achieve end results effectively. Thus, this study strives to fill this gap by testing the role of relational and social capital on infrastructure project performance. This study has applied the quantitative approach to collect the data through a questionnaire instrument from 335 respondents. This study has found that there are positive and significant relationships between relational capital and social capital with the performance of public infrastructure projects in the UAE

The Role of Innovation Capital on the Public Infrastructure Project Performance in UAE

UAE is one of the leading countries in the Middle East that has achieved a rapid growth in its economy over the last decades. In a few years, the UAE has built several infrastructure projects, which reflects the state trends towards improving the provided services to the public. The aim of this paper is to investigate the impact of innovation capital on the infrastructure project performance in the United Arab Emirates. This study used a quantitative method design. The population of this study comprised all unlisted infrastructure company providers within the UAE, while the sample was 293 employees from these companies. This study relies on the primary data measurements; the questionnaire instrument was used. The current study has found that there is a positive and significant relationship between innovation capital and infrastructure project performance improvement.

Public–private partnerships for sustainable infrastructure development in Ghana: a systematic review and recommendations

PurposeThe contribution of the public–private partnership (PPP) model towards the achievement of the United Nation (UN)'s Sustainable Development Goals (SDGs) has been widely acknowledged. However, limited studies have shed light on the connection between PPPs and the achievement of these coveted goals in Ghana. In this study, the authors aimed at analysing and synthesising the existing literature on the use of PPP to achieve sustainability in infrastructure projects in the country.Design/methodology/approachA three-step approach was used to retrieve and review 60 selected articles aided by content analysis.FindingsThe analysis showed that all existing relevant publications on the application of the PPP model to attain UN’s SDGs in the country are organised around dominant themes, such as poverty alleviation, urban development, waste management and risk management. However, the review revealed little studies exist on pertinent issues relating to PPPs and sustainable development goals, such as climate action, critical resilience, sustainable finance and clean energy.Research limitations/implicationsAlthough the study is limited to 60 articles in Ghana, the results reveal pertinent gaps for further research studies to achieve sustainable infrastructural development in Ghana and other countries.Practical implicationsHolistically, the outcome of this study will serve as a guide to project managers to understand essential issues on attaining sustainability on public projects.Originality/valueThis article contributes to the literature and practice on the significance of PPP in mainstreaming UN's SDGs in public infrastructure projects.

Learning from external stakeholders: Evidence from two railway projects in Germany

By analysing public infrastructure projects in Germany, especially those concerning stakeholder engagement, we observed ‘learning from external stakeholders’ took place. Projects and stakeholders appeared to benefit from this learning (e.g. by identifying project-relevant information, stakeholder expectations, wishes). The findings of this study reveal that project leadership plays a crucial role in this approach. The purpose of this study is to better understand ‘how to learn from external stakeholders’ by combining stakeholder management and knowledge management. We use critical success factors of knowledge management as indicators of learning. Our contribution is threefold: first, we create a better understanding of learning by identifying critical success factors and applying them to two railway project cases. Second, we show what we have learnt in the cases. Third, we present propositions that contribute to increasing the value of public infrastructure projects by learning from external stakeholders. Lastly, we demonstrate the influence of project leadership.

Investigating the Factors Affecting Delays in Infrastructure Projects

Time and expense overruns are regular occurrences in the construction industry all around the world but these are a major concern in developing countries such as India, and their consequences can be extremely harmful when public infrastructure projects are concerned. In India as per the MoS & PI report, as of October 2019, there were 552 delayed construction projects, and the mean time overrun in these 552 delayed projects is29.07 months. Many studies in the literature review previously, have concentrated on a variety of infrastructure risk management issues but there have only been a few studies that have looked into the overall dynamics of infrastructure and how a project's timeline can be affected by changing risk interactions. This article aids in the investigation of the variables and causes of construction delays in infrastructure projects.

Reengineered Governance Process for Assessing Core Public Infrastructure Projects

Although the global financial crisis has adversely affected finances, governments continue to prepare substantial budgets annually to promote major economic development projects. However, the projects that are actually implemented by the current system often encounter delays, low public usage after completion, or failure to achieve the original objectives or expected benefits. This issue demands that the government immediately establish the countermeasures needed for effective improvement. The objective of this study is to provide a mechanism for promptly terminating ineffective projects and for minimizing the risks of ineffective project execution and unused budgets. To achieve the goal of the efficient use of financial resources, this study applied a qualitative research method and the process of reengineering concepts to provide government agencies with standard operating procedures and to review checklists for project assessment. The analysis results can be applied to public infrastructure projects before or during execution and provide an exemplary urban policy evaluation model for a three-tier administration system. The contributions of this study aim to reduce the misuse and waste of national resources and to maximize the efficiency of resource use by developing a standard review procedure, effective assessment procedures, a checklist, and a review checklist that can serve as a reference for government agencies.

Governance structures for public infrastructure projects: Public–private management regimes, contractual forms and innovation

The choice of appropriate governance structures for public infrastructure projects is a major challenge for governments. The extant literature provides ample theoretical support to analyse various public–private management regimes for public infrastructure service delivery, but there is little discussion on the innovation incentives of specific contractual forms and their welfare implications under different management regimes. Our research aims at providing answers to the following research questions: who should manage different tasks in public infrastructure delivery – public, private or public–private partnership (PPP)?; how should these tasks be managed to foster innovation and enhance welfare?. We explore these using a multi-period analytical model that analyses innovation incentives induced by six contractual forms under five management regimes. We derive conditions under which specific governance structures maximise welfare. Our analysis reveals that PPPs induce optimal innovation and maximise welfare if governed through revenue-sharing concessions for user-payment type services and fixed-price annuity type contracts for no-user-payment type services. The risk share of the private partner and the shadow cost of public funds strengthen the case for PPPs while transaction costs weaken it. These results generate novel insights for policymakers to design effective governance structures and set new research directions in public infrastructure governance.

Market-Segmentation Study of Future and Potential Users of the New Réseau Express Métropolitain Light Rail in Montreal, Canada

Goals for public transit agencies and new public transport infrastructure projects include attracting new riders and retaining existing system users. An understanding of the public transport market and its preferences, habits, and attitudes can help public transit agencies reach these goals by shedding light on how to increase customer satisfaction. To understand potential users of one of Montreal’s most recent major transport projects, the Réseau express métropolitain (REM), we conducted a survey in Fall 2019 while the light-rail system was under construction. Drawing on vetted transport market-segmentation frameworks, this study employs an exploratory factor analysis to reveal factors that affect respondents’ propensity to use the REM. A k-means cluster test is applied to the factors to articulate market segments. The analysis returned four clusters that form a clear spectrum of least likely to most likely REM users: car-friendly non-users, urban core potential users, transit-friendly users, and leisure and airport users. Positive opinion, proximity, and desire to use the REM for leisure or non-work trips are three key characteristics of likely users. There is a visible relationship between clusters who are likely to use the REM and clusters who agree that the REM will benefit their neighborhood. Improving people’s perception of the potential benefit of the REM to their neighborhood, better accommodating leisure use, emphasizing and communicating appealing destinations, and highlighting transit connections are four core ways that planners could work to potentially increase the number of people who are likely to use the REM.

Quality and safety issues and countermeasures of major water conservancy projects in Zhejiang Province

Water conservancy project is an important public infrastructure project related to the national economy and people’s livelihood. The quality and safety issues of major water conservancy projects are the core work for the government to strengthen the management of water conservancy project construction. Based on the inspection and re-inspection work of major water conservancy projects in Zhejiang Province between 2015 and 2019, this paper analyzes the main problems existing in major water conservancy projects, points out the engineering quality and safety problems account for a large proportion, analyzes the changing trend of engineering quality and safety problems, points out the main causes of quality and safety problems as well as the causes of non-correction, and puts forward the corresponding solutions. On this basis, the main responsible parties and problems are analyzed, which provides reference and suggestions for the relevant participating units to strengthen the quality and safety management of major water conservancy projects in the future.

Online information adoption about public infrastructure projects in China

Public infrastructure projects are usually controversial and have huge impacts on the environment and society, thus attracting the attention from the broad public. Public understanding of engineering issues is important to the decision-making process of public infrastructure projects, but relevant empirical studies are still lacking in the literature. With a theoretical root of Elaboration Likelihood Model, this study empirically investigates the mechanism of online information adoption about public infrastructure projects based on 1877 answer data collected from Zhihu.com (an popular social Q&A site in China). Regression results show that: (1) information richness has an significantly positive effect on information adoption of an answer, (2) content features including professionalism, personal experience, entertainment, and anti-stigmatization have significantly positive effects on information adoption, (3) source credibility and source attractiveness have significantly positive effects on information adoption, and (4) source attractiveness negatively moderates the effect of information richness on information adoption. This research provides a better understanding of the mechanism of online information adoption and the formation of public opinion on controversial infrastructure projects.

RISK MANAGEMENT IN PUBLIC-PRIVATE PARTNERSHIP AND OTHER MAJOR INFRASTRUCTURE PROJECTS

ABSTRACT Any public infrastructure project, and especially a public–private partnership (PPP) project, is a complex project with many different obligations. It weaves together the interests of a wide range of participants: public and private partners, governmental authorities, and public organizations, the private partner’s shareholders, banks, and other financing entities, contractors, suppliers, operators, and insurers, as well as the interests of third parties such as consumers, and public organizations affected by the project in one way or another.These circumstances predetermine the large number of risks the private and public partners face in implementing a project, including construction and operating risks, tax, financial, market, political, legal, information, and other risks.Many of these risks are manageable and can be prevented or identified at the stage when they can be kept from materializing and resulting in specific adverse consequences such as breach of obligations and, in the worst-case scenario, default on the project. Both the private and the public partner should consider and control these risks. Proper risk management is also an important factor in reaping financial and operating benefits.The article’s objective is to promote modern approaches to risk analysis and risk-oriented decision-making when implementing PPP projects.

Resource-Financed Infrastructure: Thoughts on Four Chinese-Financed Projects in Uganda

Increasingly common methods for financing public infrastructure in developing economies are Resources-for-Infrastructure (R4I) and Resource-Financed Infrastructure (RFI), usually involving Chinese financial institutions and Chinese construction companies. Although there are advantages to the borrowing country from these project financing arrangements, there are also various issues and governance challenges. In Uganda, expectations around future revenue from oil extraction have led to many infrastructure projects being commissioned, mostly funded by RFI arrangements. To consider the appropriateness of these arrangements and to reflect on whether they are likely to contribute to positive development outcomes or be examples of the resource curse, we examined four public infrastructure projects: Kampala–Entebbe Expressway; Karuma Hydroelectric Dam; Isimba Hydroelectric Dam; and the Malaba to Kampala section of the East Africa Standard Gauge Railway. Although R4I/RFI arrangements are viewed positively by some commentators, others (especially local companies) consider they lack transparency, create unsustainable debt, promote China’s interests over the borrowing country, increase unemployment, unfairly compete with local business, deal in corruption, have poor working conditions, and result in substandard construction. Nevertheless, we conclude that Uganda and other developing countries have generally benefited from Chinese-funded infrastructure, and there is more myth trap than debt trap. However, to ensure positive development outcomes, governments and construction companies should ensure compliance with international standards, especially relating to: environmental and social impact assessment; human rights; benefit-sharing arrangements; livelihood restoration; and project-induced displacement and resettlement.

EXPLORING THE ROLE OF PROJECT GOVERNANCE AND STAKEHOLDER MANAGEMENT IN PUBLIC SECTOR INFRASTRUCTURE PROJECTS

In developing countries, governance of public sector projects is becoming increasingly more complex due to the varying nature of stakeholders and their expectations from the government to address their interest. As a result, policymakers and sponsoring agencies are more focusing on stakeholder management to ensure smooth execution, high performance and achieving desired outcomes. This study has conducted a systematic appraisal of the relevant literature to explore the thematic discussions on the role of project governance and stakeholder management in public sector infrastructure projects of Pakistan. The analysis reveals that project governance and stakeholder management is not widely been discussed in the Pakistan specific studies. Therefore, this research proposes project governance and stakeholder management as key concerns of government decision-making strategies.

What causes cost overrun in highway strategic project in Indonesia?

In 2016, Indonesia is concerning about the acceleration of public infrastructure projects through the existence of government strategy projects that spread across several project sectors, including in highway projects. Totally, there is a 44 highway strategic project in Indonesia and several of them are currently in Central Java. Unfortunately, as a national strategic project, even though all of these projects are prioritized in their construction process, the implementation of the national strategic projects are faced up problems especially related to high pressure from the government that has an impact to project cost even causing cost overrun including in highway strategic project. The research aim is to analyze factors causing cost overrun in highway strategic project from owner and contractor perspectives. This study is limited to a case study in Pemalang-Batang Highway Strategic Project. The analysis of the study is using Risk Breakdown Structure to identify risk factors causing cost overrun. From a total of 14 risks identify, both parties agreed to design change as the most risk factor in causing cost overrun in highway strategic project in Indonesia.

Recovering Infrastructure Public-Private Partnership Projects as Effective «Epinomic» Policy in Fighting the COVID-19 Pandemic

The emergency conditions caused by the coronavirus pandemic in 2020 made the national governments the last resort, which was forced to bear all the financial costs associated with the lockdown in the national economy, with social support of the population and fiscal and monetary help to private firms which business was blocked. Lockdowns, publicly declared in countries around the world to stop the exponential growth of coronavirus-infected patients, have brought unprecedented losses in both human lives and national welfare. As a result, the coronavirus pandemic left two fundamental priorities for the state: (1) to stabilize the epidemiological situation in the country and (2) to reopen the economy in time after the lockdown. On this basis, the term "epinomics" was introduced, which assumes the primary public task to ensure the life and health of citizens, and only under this condition allows the possibility of economic recovery. In this case, the expansion of the practice of implementing public infrastructure projects on the basis of public-private partnership realizes the essence of the state’s epinomic strategy. Moreover, in the post-COVID-19 future, infrastructure projects can become an effective form of implementation of the UN “human-first” model, since they allow solving the immediate problems of ordinary citizens mostly affected in 2020. It is about the growth of employment, the provision of workforce wages, development of socially significant infrastructure, which contribution to the economic revival of countries can hardly be overestimated. At the same time, the government through public-private partnership gets the opportunity to directly broadcast to society the results of the effectiveness of its epinomic strategy in stabilizing the epidemiological situation and reopening the economy after the lockdown.