The financial viability of the Yamuna Expressway

2014 ◽  
Vol 4 (4) ◽  
pp. 1-9 ◽  
Author(s):  
Monica Singhania ◽  
Kamal Kumar
Keyword(s):  
Swot Analysis ◽  
Graduate Program ◽  
Emerging Market ◽  
Management Control ◽  
Financial Viability ◽  
Infrastructure Development ◽  
Infrastructure Projects ◽  
Content Type ◽  
Post Graduate ◽  
Infrastructure Project

Subject area The case focuses on issues concerning infrastructure development by Jaypee Infratech Ltd. (JIL) in the context of emerging market of India. This is undertaken by employing the usage of strength weakness opportunity and threat analysis (SWOT) analysis, political, economical, sociological and technological analysis (PEST) analysis and Porter's Five Forces Model and competitor analysis. It also outlines the importance of financing model adopted with respect to Concessionaire Agreement drafted and executed towards making an infrastructure project financially viable so as to reduce the risk associated with infrastructure projects which requires huge investments and long gestation period. Further, it also highlights the importance of how future projects can be undertaken on the basis of public private partnership (PPP) model. Study level/applicability This case can be used as a teaching tool in the following courses: MBA/Post Graduate Program in Management in Management Accounting, Management Control Systems and Strategic Cost Management. It can be used to explain concepts of SWOT analysis and Porter's Five Forces Model analysis. Students are also introduced to the technique of financial analysis. Executive training programs for Middle- and Senior-level employees to explain the Infrastructure Financing and Concessionaire Agreement for infrastructure projects. Under-graduate/Post-graduate programs in Entrepreneurship. Case overview JIL was established as a Special Purpose Vehicle in 2007 to execute the Yamuna Expressway project. Originally the contract was awarded to parent company Jai Prakash Associates Ltd. in 2003. The project entails financing, construction, operation, maintenance and collection of toll for 36 years and then transferring it back to Government of Uttar Pradesh of 165.5 km Yamuna Expressway, and subsequently development of 530-million square feet of area from five parcels of land earmarked along the expressway. The project highlights how a PPP infrastructure project can be made financially viable. Expected learning outcomes SWOT analysis was used to identify the strengths, weaknesses, opportunities and threats to a company. Also, application of Porter's Five Forces Model was done to analyze an industry. Determining quantitative terms like Long-Term Return on equity, Return on Capital Employed, Book Value vs Market value, Net Margins, Income Tax benefits enjoyed under section 80-IA and Minimum Alternative Tax (MAT); determining financial viability of an infrastructure project over its entire life cycle. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes

scholarly journals Engineering Procurement Construction in the Context of Belt and Road Infrastructure Projects in West Asia: A SWOT Analysis

2021 ◽  
Vol 14 (3) ◽  
pp. 92
Author(s):  
Mohammad Ajmal Nikjow ◽  
Li Liang ◽  
Xijing Qi ◽  
Samad Sepasgozar
Keyword(s):  
Swot Analysis ◽  
Management Practice ◽  
Current Status ◽  
Infrastructure Development ◽  
Infrastructure Projects ◽  
Information Communication ◽  
Complex Environments ◽  
Structured Interviews ◽  
Normative Practice ◽  
Belt And Road

Engineering procurement and construction (EPC) is a normative practice globally approved since China has been engaging in international cooperation under the Belt and Road Initiative (BRI) infrastructure development. EPC has been adopted in the delivery of BRI infrastructure projects in other countries. Compared to the domestic method of contract, EPC remains at a low level in management practice, such as a lack of coordinating diverse project stakeholders, high cost of information communication, and risk in complex environments in West Asia (WA). However, no research has conducted a strategic analysis of the current situation of EPC for BRI infrastructure projects in West Asian countries. This study aims to understand the current status quo of EPC for BRI projects in WA by performing a strength, weakness, opportunity, and threats (SWOT) analysis and with the support of data collected from the literature review and semi-structured interviews with EPC stakeholders. The study brings awareness along which internally and externally circumstances of the EPC for BRI infrastructure projects can be perceived by major stakeholders participating. The four critical strategies presented based on the SWOTs identified could help EPC firms develop and promote EPC to implement BRI infrastructure projects in WA at the strategic level.

Risk analysis of belt and road infrastructure projects using integrated ISM-MICMAC approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Ajmal Nikjow ◽  
Li Liang ◽  
Qi Xijing ◽  
Harshad Sonar
Keyword(s):  
Risk Mitigation ◽  
Mitigation Strategies ◽  
Strategic Decision ◽  
Chinese Government ◽  
Infrastructure Projects ◽  
Interpretive Structural Modeling ◽  
Content Type ◽  
Hierarchical Relationship ◽  
Belt And Road ◽  
Infrastructure Project

Purpose The historic Belt and Road Initiative (BRI) is an economic reform policy proposed by the Chinese Government that focuses on connectivity, improved collaboration and more robust economic relations. This paper aims to identify risks involved in BRI infrastructure project and establish a hierarchical relationship among them. Design/methodology/approach The methodology includes two phases, namely, identification of significant risks involved in the BRI project using systematic literature review and to develop a hierarchical relationship between the risks using interpretive structural modeling followed by the MICMAC analysis. Findings This work has identified the 11 risks of BRI infrastructure projects through academic literature. Based on the analysis, economic risk (R3), environmental risk (R1) and political risk (R2) are placed at level six in the ISM model and can significantly influence BRI infrastructure projects. These risks have high driving power, which exaggerates other risks. Research limitations/implications This study would help Engineering Procurements and Construction contractors in strategic decision-making select risk mitigation strategies and make robust and efficient infrastructure projects. However, additional factors may be considered, which are essential for the BRI infrastructure project. Originality/value This research’s novelty lies in the advancement of expertise in project risk assessment. This study contributes by identifying the most significant risks involved in the BRI project. The integrated ISM-MICMAC approach provides a macro picture of BRI project risks to formulate better strategies for its success.

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.

UCOOK: growth challenges faced by a small- to medium-sized South African venture

2019 ◽  
Vol 9 (3) ◽  
pp. 1-33
Author(s):  
Geoff Bick ◽  
Jeanné Odendaal
Keyword(s):  
Learning Outcomes ◽  
South African ◽  
Business Students ◽  
Emerging Market ◽  
Growth Strategy ◽  
Sustainable Growth ◽  
Strategic Decision ◽  
Content Type ◽  
Teaching Case ◽  
Post Graduate

Learning outcomes The learning outcomes are as follows: to understand how technology can be used to create innovative entrepreneurial opportunities; to develop analytical and critical thinking skills to understand organisations, industries and their dynamics; to analyse strategic options for an entrepreneurial organisations and motivate a proposed strategic direction; and to assess the inter-functional requirements for an entrepreneurship to successfully implement a strategy. Case overview/synopsis UCOOK, a successful emerging economy SME, is confronted with the threat of retail giants (e.g. Checkers and Woolworths) entering the meal kit space. No longer the only “new kid on the block”, UCOOK has to consider a sustainable growth strategy to remain competitive. The case provides the reader with a snapshot of experiences of a meal kit entrepreneurial venture and what it entails for them to grow in the South African milieu. Principally, this case is designed to impart knowledge and stimulate a practical understanding of entrepreneurship and strategic decision-making in the meal kit industry. Additionally, the purpose is to serve as inspiration for business students to see the opportunities that lie within strategically astute emerging market ventures. Complexity academic level The primary target audience for this teaching case is postgraduate business students, especially students of entrepreneurship, strategy and e-commerce. This teaching case is intended to be used as case study in post graduate business programmes such as Master of Business Administration (MBA), a specialist Masters programme such as MM (Entrepreneurship), post-graduate diploma in management (PGDip), as well as selected executive education programmes. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 3: Entrepreneurship.

Obstacles and challenges in applying stakeholder analysis to infrastructure projects

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anna Wojewnik-Filipkowska ◽  
Anna Dziadkiewicz ◽  
Wioleta Dryl ◽  
Tomasz Dryl ◽  
Robert Bęben
Keyword(s):  
Life Cycle ◽  
Public Involvement ◽  
Stakeholder Analysis ◽  
Future Research ◽  
Infrastructure Projects ◽  
Cross Sectional ◽  
Content Type ◽  
Infrastructure Project ◽  
The Creation

Purpose Public involvement is essential in the creation of effective local strategies for the development of a sustainable built environment, yet there has been little research on stakeholder motivation and engagement in the creation of infrastructure-project value, in the entire life cycle of a given project, while different markets show that overlooking stakeholders can negatively affect the success of an infrastructure project. The purpose of this paper is to fill the theory-practice gap that has been discerned, and thus study how early public involvement determines the success of an infrastructure project, which is identified with its value creation (effectiveness, sustainability and utility). Design/methodology/approach This research entails a combination of methods. A case study analysis allowed observation of the role the stakeholders play and of how the relationships, perspectives, expectations and risks, along with other soft issues, continue to affect projects. The case study required comprehensive examination of project documentation and conduction of interviews. To collect data, focused group interviews and semi-structured interviews were used, supported with direct questionnaire surveys. Findings The study provides evidence that early public engagement can contribute to infrastructure-project value (effectiveness, sustainability and utility). Practically speaking, the stakeholder analysis performed allowed proposal of a general stakeholder analysis framework for infrastructure projects. It can be implemented at each investment phase of the project life cycle, since stakeholders and their motivation may develop and/or change over time, which necessitates development of proper managerial strategies. The findings highlight the opportunities and the challenges faced by stakeholder management. Research limitations/implications The limitation of this study derives from the fact that the sample size was small, which was necessary for an in-depth qualitative research and application of the case study method. The observations were made on a selected case study, within a limited period of time, thus the context of the analysis as well as the stakeholder perception was subject to possible change. The research limitations concern the provisional nature of the information obtained, the cross-sectional nature of the analysis itself, and, finally, the inability to predict all future events. Ultimately, stakeholder mapping was performed for the operational phase of the investment exclusively, while the analysis was limited to identification and classification of the stakeholders, including their relationship with the project. Practical implications The research conclusions provide useful input for future research on development of effective strategies for management of the shareholders that are related to a given infrastructure project, in order to achieve project success. Simultaneously, from a property perspective, the research has contributed to a better understanding of the importance of infrastructure, on the part of real estate stakeholders. Social implications Application of the approach proposed in the study may contribute to early development and implementation of appropriate trust-building processes. The building of relationships between stakeholders enables checks and balances, promotes short- and long-term project benefits, and increases the value of a project. Originality/value The novelty of the research consists in the connection, as part of infrastructure projects, of the theory of consumption values and the concept of an investment cycle with the framework of stakeholder analysis.

The challenges of access to local finance for PPP infrastructure project delivery in Nigeria

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammed Temitayo Bolomope ◽  
Kwasi Gyau Baffour Awuah ◽  
Abdul-Rasheed Amidu ◽  
Olga Filippova
Keyword(s):  
Developing Countries ◽  
Public Perception ◽  
Developing Economies ◽  
Relevant Literature ◽  
Project Delivery ◽  
Infrastructure Projects ◽  
Access To Finance ◽  
Content Type ◽  
Local Finance ◽  
Infrastructure Project

Purpose This study explores the challenges of access to finance from local financial institutions (LFIs), i.e. local banks, for public–private partnership (PPP) infrastructure project delivery in Nigeria. The aim is to provide useful insights that could inform policy solutions to ease the local funding of PPP infrastructure projects in Nigeria and, by extension, other developing economies. Design/methodology/approach Adopting a qualitative research methodology, the study engaged PPP stakeholders involved in securing funds for PPP infrastructure projects in Nigeria. A total of 15 PPP stakeholders, drawn from the public and private sectors, were purposively selected and their views on the research problem obtained through recorded telephone interviews. The opinions of the research participants were subsequently analyzed and the results discussed with the outcome of the examination of relevant literature. Findings The study found that the significant factors affecting access to local finance for PPP infrastructure projects in Nigeria include low capital base by LFIs, weak project viability, lack of capacity to manage PPP-related activities, inconsistent government policy, poor legal framework and public perception of PPP. Research limitations/implications Insights from this study are useful for PPP stakeholders in mitigating the barriers that influence access to local finance for PPP infrastructure projects in Nigeria and other developing economies. This study is also useful in enhancing the current policy structure in developing countries as a way of revamping the existing infrastructure framework through LFIs. Originality/value This study provides clarity on the peculiar challenges impeding access to finance from LFIs for PPP infrastructure projects in Nigeria and will be useful for debt providers and policymakers in evaluating the bankability of PPP infrastructure projects in Nigeria and other developing countries.

scholarly journals Investigation into the causes of delay in land acquisition for PPP projects in developing countries

2017 ◽  
Vol 15 (4) ◽  
pp. 552-570 ◽  
Author(s):  
Solomon Olusola Babatunde ◽  
Onaopepo Adeniyi ◽  
Oluwaseyi Alabi Awodele
Keyword(s):  
Developing Countries ◽  
Factor Analysis ◽  
Literature Review ◽  
Questionnaire Survey ◽  
Empirical Method ◽  
Land Acquisition ◽  
Infrastructure Development ◽  
Infrastructure Projects ◽  
Content Type ◽  
Private Investors

Purpose The land is a critical resource for public-private partnerships (PPPs) in infrastructure development. However, acquisition of land for PPP infrastructure projects implementation increasingly becomes problematic in developing countries. Yet, effort at investigating the factors causing a delay in land acquisition for PPP infrastructure projects through an empirical method in developing countries received scant attention. Therefore, the purpose of this study is to identify and critically assess the factors predisposing PPP projects implementation to land acquisition delay in Nigeria using an empirical approach. Design/methodology/approach The study adopted literature review and questionnaire survey. For instance, literature review was used to identify the factors causing delay in land acquisition for PPP projects in developing countries, which was used to design the questionnaire survey culminating in data analysis. To capture a broad perception, the questionnaires were administered to three different primary stakeholder groups comprised public sector authorities (i.e. ministries, department, agencies), concessionaires and lenders/banks involved in PPP projects implementation in Nigeria. Data collected were analysed using mean score, Kruskal–Wallis test and factor analysis. Findings The study revealed the mean score ranking of 22 identified factors causing a delay in land acquisition for PPP projects in Nigeria. The result of factor analysis grouped the 22 identified factors into 4 principal factors, namely, resettlement issues with political interference; non-availability of land with a higher cost of land transactions; weak planning institutions; and rehabilitation issues with extensive legal delays. Practical implications These study findings have implications for both policymakers considering PPP projects and private investors seeking to finance a PPP project in developing countries. Also, the study findings would be useful for the governments in Nigeria and other developing countries to formulate clear policies framework that facilitates the smooth acquisition of land for PPP projects. Originality/value The study will be beneficial to the potential local and foreign private investors and governments by broadening their awareness on impediments in land acquisition for PPP projects in Nigeria and developing countries at large. These study findings are crucial, as not many empirical studies have been conducted in Nigeria and many other developing countries.

Governance distance and the performance of cross-border private participation infrastructure projects

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yanxi Li ◽  
Heng Zhao ◽  
Shanshan Ouyang
Keyword(s):  
Emerging Market ◽  
Infrastructure Projects ◽  
Host Countries ◽  
Content Type ◽  
Cross Border ◽  
Study Results ◽  
Private Participation ◽  
Negative Effect ◽  
Host Government ◽  
The Impact

PurposeThe privatization of infrastructure promotes efficiency and service standards. While cross-border private participation infrastructure (PPI) projects hosted in emerging markets have become more prevalent in recent years, there have also been more failures. The purpose of this paper is to investigate how governance distance affects the survival of cross-border PPI projects.Design/methodology/approachThe authors provide theoretical justification and empirical evidence to verify our views. The authors test the hypotheses on a sample of 4,678 cross-border PPI project investments made in emerging market countries between 1990 and 2016. Estimation techniques consist of a binary logistic regression model and a rare events logistic model.FindingsThe findings suggest that increased governance distance can lead to project failure. The study results show that governance distance is negatively correlated with the probability of project survival. Greenfield investment intensifies the negative effect of governance distance while competitive contracts mitigate the negative effect of governance distance.Practical implicationsThe results reveal that transnational investment in infrastructure projects is susceptible to institutional differences between home and host countries. Therefore, both private enterprises and host government should pay attention to the impact of inter-country differences on negotiations and project operation. Competitive contracts mitigate this negative effect, but entering in the form of greenfield investment amplifies the negative effect of distance.Originality/valueTransnational industrial engineering projects are easily affected by the differences in governance levels between the two countries. This study introduces governance distance into the field of infrastructure projects, focusing on the impact of differences between home and host countries on transnational projects. The findings on infrastructure projects that are closely related to host government contribute to the literature by broadening the research of institution and distance.

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.

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