Enhancing sustainability of Indian PPP procurement process using system dynamics model

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nilesh Agarchand Patil ◽  
Nicola Thounaojam ◽  
Boeing Laishram
Keyword(s):  
Sustainable Development ◽  
System Dynamics ◽  
Infrastructure Development ◽  
Cost Overrun ◽  
Infrastructure Projects ◽  
Sustainable Infrastructure ◽  
Content Type ◽  
Procurement Process ◽  
Body Of Knowledge ◽  
Sd Model

Purpose Increasingly adopted by various governments for infrastructure development, public-private partnerships (PPPs) have become a popular procurement delivery system, outperforming other systems. However, PPPs have been especially criticised due to the lack of sustainability aspect during the development and implementation of the projects. In India, similar critiques have been raised, as these qualities have inhibited the development of society and increased the time and cost overrun in the development of PPP projects. This paper, therefore, aims to address the sustainability issues in PPPs and systematically analyses from the perspective of the principles of sustainable development. Design/methodology/approach Based on literature review and focussed interviews with stakeholders in India, a qualitative system dynamics (SD) model using causal loop diagramming is developed to propose the inclusion of various strategies in the PPP procurement process, which can enhance the sustainability of the PPP process. Finally, the integration of these strategies in the current PPP procurement process has been highlighted in the form of the introduction of new mechanisms and policies and modification of the existing mechanism and procurement policies. Findings The paper first highlights key sustainability issues in the PPP procurement process and suggests 34 strategies to address the issues. The modelling approaches and the proposed strategies, along with their interrelationships, could help the PPP decision makers in implementing responsive policies in bringing sustainable development in the PPP procurement process. Research limitations/implications The SD model developed is based on limited data, primarily focussed on PPP procurement practices in the context of infrastructure development in India. Developing the model with the analysis of a wider range of data and constructing a customised model can take broader perspectives into account. Social implications Adoption of the identified strategies can facilitate the inclusion of sustainability practices in the development of infrastructure projects, which are even procured using private finance. Originality/value Studies on how to promote sustainable infrastructure development when procured through the PPP route are in the nascent stage. This study, therefore, extends the current body of knowledge on infrastructure projects implementation through PPPs from financial engineering and risk management to a sustainability perspective.

Sustainable infrastructure development challenges through PPP procurement process

2017 ◽  
Vol 10 (3) ◽  
pp. 642-662 ◽  
Author(s):  
Nilesh Agarchand ◽  
Boeing Laishram
Keyword(s):  
Sustainable Development ◽  
Impact Assessment ◽  
Social Impact ◽  
Sustainability Assessment ◽  
Governance Structure ◽  
Theory Approach ◽  
Infrastructure Development ◽  
Sustainable Infrastructure ◽  
Content Type ◽  
Procurement Process

Purpose Infrastructure development through public-private partnership (PPP) route in India has exhibited concerns about not promoting progress toward sustainable development goals, particularly social and environmental perspectives. The purpose of this paper is, therefore, to identify the shortcomings in the Indian PPP procurement process using the key principles of sustainability. Design/methodology/approach Qualitative research inquiry through grounded theory approach by using the literature and interview source was used to identify the challenges encountered in sustainable infrastructure development of PPP projects. These challenges were, first, reviewed from the perspectives of key sustainability principles and then discussed with the key stakeholders through focused interviews. Furthermore, micro-interlocutor analysis was carried to get an insight on the extent of consensus amongst the experts regarding these identified shortfalls. Findings The key shortfalls identified from the study that adversely affect progress toward sustainable development include incomprehensive environmental impact assessment and social impact assessment studies; lack of stakeholder and local participation; high bidding and transaction cost; high user charges; improper risk allocation; lack of transparency and accountability; goal conflicts between public and private sector; and lack of skill and knowledge about sustainability. Practical implications The study findings will help in devising appropriate strategies for enhancing the mechanisms, policies, and governance structure of PPP process in order to overcome these shortfalls and help in accomplishing the goals of sustainability while developing infrastructure even through PPP route. Originality/value The paper presents different insights into PPP from sustainability perspective which has not been the focus of the current studies on PPPs. Sustainability assessment of PPP procurement is an area of research which is in a nascent stage.

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

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Isaac Akomea-Frimpong ◽  
Xiaohua Jin ◽  
Robert Osei-Kyei ◽  
Augustine Senanu Kukah
Keyword(s):  
Sustainable Development ◽  
Sustainable Development Goals ◽  
Clean Energy ◽  
Project Managers ◽  
Infrastructure Development ◽  
Infrastructure Projects ◽  
Content Type ◽  
Public Projects ◽  
Climate Action ◽  
Development Goals

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.

scholarly journals Sustainable Public Procurement and Human Rights: Barriers to Deliver on Socially Sustainable Road Infrastructure Projects in Mexico

2021 ◽  
Vol 13 (17) ◽  
pp. 9605
Author(s):  
Laura Treviño-Lozano
Keyword(s):  
Sustainable Development ◽  
Human Rights ◽  
Public Procurement ◽  
Sustainable Consumption ◽  
Infrastructure Projects ◽  
Sustainable Infrastructure ◽  
Road Infrastructure ◽  
Procurement Process ◽  
Positive Effects ◽  
Business And Human Rights

Public procurement involves a process through which the public sector buys goods, services and works from private suppliers to accomplish its functions, including road infrastructure projects. Sustainability, both within the procurement process and the infrastructure outcome, comprises economic, environmental and social dimensions. Sustainable Public Procurement (SPP) is acknowledged as a core dimension of sustainable development goal 12 (SDG12) on sustainable consumption by States and production by businesses, and as a State-business nexus within Pilar I of the UN Guiding Principles on Business and Human Rights (UNGPs). Clearly, SPP delivering sustainable infrastructure involves broad positive effects and benefits for involved stakeholders and leveraging power over business suppliers to include social sustainable criteria within the procurement process is in the State’s hands. However, SPP has been little implemented in developing States such as Mexico resulting in unsustainable infrastructure outcomes. This article explores, through two case studies, the barriers of socially sustainable public procurement of road infrastructure developed by businesses contracted by the State in Mexico. By identifying such barriers, the Mexican State could be able to implement measures to tackle them and deliver on social sustainable infrastructure aligned with its commitments on sustainable development goals and its international obligations on human rights.

scholarly journals Technical Infrastructure as an Element of Sustainable Development of Rural Regions in Małopolskie Voivodeship in Poland and Trnava Region in Slovakia

Agriculture ◽  
2021 ◽  
Vol 11 (2) ◽  
pp. 141
Author(s):  
Marcin Surówka ◽  
Łukasz Popławski ◽  
Helena Fidlerová
Keyword(s):  
Sustainable Development ◽  
Rural Areas ◽  
Infrastructure Development ◽  
The European Union ◽  
Regional Competitiveness ◽  
Rural Regions ◽  
Sustainable Infrastructure ◽  
The Sustainable Development ◽  
Economic Progress ◽  
West Part

The work discusses issues of the infrastructure, its instruments, and specifics of infrastructure in Polish and Slovak rural areas. The aim of this article is to analyze the level of technical infrastructure development in rural regions of the Małopolskie Voivodeship in Poland and the west part of Slovakia—Trnava self-governing region (Trnava region) as two regions with a similar position regarding regional competitiveness index. Following the topic, after identification of strengths and weaknesses of mentioned regions, the opportunities, and threats of sustainable development of infrastructure in rural areas have been analyzed using the SWOT method. The development of sustainable, reliable, and functional infrastructure does not only refer to the chosen regions of Poland and Slovakia but also other regions in the European Union. Sustainable infrastructure is a factor stimulating social and economic progress as one of the most important determinants of sustainable development and regional competitiveness. The authors notice a particular lack in the sustainable development of infrastructure in the field of water and sewerage management together with the supply of water. Therefore, this article tries to complete the gap in research focusing on the concept of a more systematic approach to technical infrastructure improvement in the context of sustainable development, and strategy of cooperation.

Schedule and cost overrun analysis for R&D projects using ANP and system dynamics

2017 ◽  
Vol 34 (9) ◽  
pp. 1551-1567 ◽  
Author(s):  
Sandeep Kumar ◽  
J.J. Thakkar
Keyword(s):  
System Dynamics ◽  
Risk Mitigation ◽  
Analytic Network Process ◽  
Raw Material ◽  
Design Stage ◽  
Economic Factors ◽  
Cost Overrun ◽  
Individual Factor ◽  
Content Type ◽  
Network Process

Purpose Schedule and cost overrun analysis for a typical research & development (R&D) project is necessary to identify and mitigate the non-feasible alternatives at the design stage. Typically, this should include an analysis of technological and economic factors of R&D project. This paper aims to discuss these issues. Design/methodology/approach This research proposes an integrated analytic network process (ANP) and reusable system dynamics (SD) model for a quick and strategically consistent decision making. The technological and economic factors of R&D project were first identified and compiled through a systematic literature review. An ANP model was first developed for calculating Risk Priority Index (RPI) for set of technological and economic factors. The computed RPI are considered as an input to SD models. Two SD models (technological and economic) are developed to undertake a detailed investigation on effect of individual factor on schedule and cost overrun. The approach is exemplified for a case of government R&D project in India. Findings ANP identifies “Testing & qualification facility” and “Raw material availability” as the highest RPI factors. A detailed sensitivity analysis of SD models suggests that technological factors such as “Design Changes,” “Hidden Activities,” and “Lack of Expertise” and economic factors such as “Project delays,” “Unexpected incidents” and “Conflicts” have the highest influence on schedule and cost overrun. Practical implications The outcomes of this research can help managers to estimate the severity of various technological and economic factors on cost and schedule overrun and develop an adequate risk mitigation contingency plan. Originality/value In case of R&D projects where systems are being developed for the first time, changes are inevitable, and hence schedule and cost management plays a very important role in its success. This paper proposes an integrated reusable approach of ANP and SD for analyzing the influence of technological and economic factors on schedule and cost overrun of R&D project.

scholarly journals Cost overruns and delays in infrastructure projects: the case of Stuttgart 21

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bertram I. Steininger ◽  
Martin Groth ◽  
Brigitte L. Weber
Keyword(s):  
Early Stage ◽  
Hyperbolic Discounting ◽  
Theoretical Explanation ◽  
Hyperbolic Function ◽  
Exploratory Research ◽  
Cost Overrun ◽  
Infrastructure Projects ◽  
Content Type ◽  
Geological Conditions ◽  
The Cost

PurposeWe investigate causes for the cost overrun and delay of the railway project Stuttgart 21. Besides, we try to forecast the actual costs and completion date at an early stage.Design/methodology/approachThe results of exploratory research show the causes for the cost overrun and delay of Stuttgart 21; we compare our findings with other railway projects. To estimate the costs at an early stage, the reference class forecasting (RCF) model is applied; to estimate the time, we apply an OLS regression.FindingsWe find that the following causes are relevant for the cost overrun and delay of Stuttgart 21: scope changes, geological conditions, high risk-taking propensity, extended implementation, price overshoot, conflict of interests and lack of citizens' participation. The current estimated costs are within our 95% confidence interval based on RCF; our time forecast underestimates or substantially overestimates the duration actually required.Research limitations/implicationsA limitation of our approach is the low number of comparable projects which are available.Practical implicationsThe use of hyperbolic function or stepwise exponential discount function can help to give a clearer picture of the costs and benefits. The straightforward use of the RFC for costs and OLS for time should motivate more decision-makers to estimate the actual costs and time which are necessary in the light of the rising demand for democratic participation amongst citizens.Social implicationsMore realistic estimates can help to reduce the significant distortion at the beginning of infrastructure projects.Originality/valueWe are among the first who use the RCF to estimate the costs in Germany. Furthermore, the hyperbolic discounting function is added as a further theoretical explanation for cost underestimation.

scholarly journals The impact of transport infrastructure projects on sustainable development within a major logistics gateway in North West England

2016 ◽  
Vol 7 (1) ◽  
pp. 28-40 ◽  
Author(s):  
Dimitrios Paraskevadakis ◽  
Alan Bury ◽  
Jin Wang ◽  
Jun Ren ◽  
Stephen Bonsall ◽  
...  
Keyword(s):  
Sustainable Development ◽  
Negative Impact ◽  
Transport Infrastructure ◽  
Quality Data ◽  
Infrastructure Development ◽  
Infrastructure Projects ◽  
The Sustainable Development ◽  
North West ◽  
The North ◽  
The Impact

Abstract In the North West of England the issue of a perceived infrastructure gap is of increasing concern. Investment needs to be made to improve the transport infrastructure of the region if it is to be expected to promote the development of its own regional logistics gateway. Funding tools have been set up to address the challenges arising from the imbalance in infrastructure development that exists between regions in the north of the United Kingdom and those in the south. For regions with well developed economies the outlook is promising as the availability of modern transport infrastructure looks set to improve. However, some sources believe that the development of new transport infrastructure will have a negative impact upon sustainable development. It is expected that this will occur in a range of both direct and indirect ways. As a result, it is critical that planning for the creation of new intermodal transport infrastructure, or the upgrading of that which already exists, takes into account the impact that these developments will have on the sustainable development of the host region. A scenario based development methodology is proposed in this paper. It was developed to provide a way to identify potential scenarios that may arise within a given region as a result of transport infrastructure projects. To create significant scenarios the methodology is dependent on the availability of a sufficient quantity of quality data. For this paper that data was collected through a focus group composed of stakeholders from the region in question. This was further supported by the performance of an impact survey using the same group of stakeholders.

Training decision-makers in flood response with system dynamics

2016 ◽  
Vol 25 (2) ◽  
pp. 118-136 ◽  
Author(s):  
Romana Berariu ◽  
Christian Fikar ◽  
Manfred Gronalt ◽  
Patrick Hirsch
Keyword(s):  
System Dynamics ◽  
Training Model ◽  
Decision Makers ◽  
Generation Process ◽  
Flood Events ◽  
Content Type ◽  
Scenario Analyses ◽  
Flood Response ◽  
Complex Settings ◽  
Sd Model

Purpose – The purpose of this paper is to present a training model for decision makers that covers the complexity which is inherent in decision-making processes in times of floods. Design/methodology/approach – Through literature review, case study analysis and iterative interviews with decision-makers, the model was established. It enables one to simulate different scenarios depending on selected influencing factors and was implemented with Stella 9.1. Findings – Flood events are highly complex and their development process is significantly influenced by various conditions. The findings show that the most important factor is the water level which determines the time available to respond. The presented System Dynamics (SD) model has the capability to capture such complex settings. Through what-if analysis and the comparison of different scenarios, learning effects are achieved by using the model. Research limitations/implications – The level of abstraction is high. Not all influencing variables can be incorporated due to the variety of flood events. Based on experts’ recommendations, the most relevant factors were included as areas of focus in the model. Practical implications – The generated model is presented to facilitate holistic comprehension of the modelling process. It offers the possibility to start learning processes through scenario analyses in order to strengthen decision-makers’ understanding of complexity. Originality/value – To the best of our knowledge, there are no comparable studies that focus on the generation process of building an SD-model for educational purposes in flood response.

Sustainability of Indian PPP procurement process

2016 ◽  
Vol 6 (5) ◽  
pp. 491-507 ◽  
Author(s):  
Nilesh Agarchand Patil ◽  
Boeing Singh Laishram
Keyword(s):  
Sustainable Development ◽  
Evaluation Criteria ◽  
Risk Allocation ◽  
Environment Impact ◽  
Content Type ◽  
The Sustainable Development ◽  
Procurement Process ◽  
Environment Impact Assessment ◽  
Local Stakeholders ◽  
Development Goals

Purpose Though public-private partnership (PPP) programme in India has stabilized significantly with implementation of successful infrastructure projects, still it suffers from shortfalls related to some aspects of sustainable development. One of the ways to overcome these shortfalls is to modify the existing PPP procurement process in order to attain the sustainable development goals. The purpose of this paper is to develop a conceptual framework highlighting the strategies for integrating sustainable development principles in PPP procurement process. Design/methodology/approach Content analysis through literature review has been adopted to identify the shortfalls in PPP process and examine the possible strategies to overcome the shortfalls from best practices in implementation of PPP projects. The preliminary framework of strategies has been conceptualized to integrate sustainable development principles in PPP procurement process. Finally, the feasibility of preliminary framework has been undertaken through focussed interviews with local stakeholders of PPPs. Findings The study indicates opportunities to promote sustainable development in the current PPP procurement process exists through enhancement in critical aspects like stakeholder’s participation, environment impact assessment, value for money analysis, user’s charges, risk allocation policies, transaction and bidding cost, and bid evaluation criteria. Originality/value The paper presents a critical insight on integrating sustainable development principles in PPP procurement process which has not been the focus in the majority of previous research studies.

scholarly journals Multi-criteria decision analysis methods to support sustainable infrastructure construction

2019 ◽  
Author(s):  
Kristine Ek ◽  
Alexandre Mathern ◽  
Rasmus Rempling ◽  
Lars Rosén ◽  
Christina Claeson-Jonsson ◽  
...  
Keyword(s):  
Decision Analysis ◽  
Case Studies ◽  
Sustainability Assessment ◽  
Assessment Methods ◽  
Infrastructure Projects ◽  
Sustainable Infrastructure ◽  
Procurement Process ◽  
Multi Criteria Decision Analysis ◽  
Infrastructure Project ◽  
Negative Impacts

<p>The construction of infrastructure projects represents a large sustainability impact, both positive and negative. Increased positive and reduced negative impacts can be achieved through better design and planning of the construction. To make more sustainable choices, well-defined predictive sustainability assessment methods are required. Multi-criteria decision analysis (MCDA) is a well- suited method for predictive sustainability assessment. This paper evaluates two MCDA methods for sustainability assessment of infrastructure construction and exemplifies their application with two case studies. The aim of this paper is to discuss if the methods are suitable for identifying the most sustainable alternative during the procurement process of an infrastructure project. It is recommended that MCDA methods are further developed to comply with the recently published EN standard on sustainability assessment of civil engineering works.</p>

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