scholarly journals Assessing Financial Risk in Public-Private Partnership Financing for Road Construction Projects in Iran Using Uncertainty Conditions Approach

2020 ◽  
Vol 10 (2) ◽  
pp. 139-146
Author(s):  
M. Jaafarian ◽  
A. Ardeshir ◽  
A. Firozi Boyaghchi
Keyword(s):  
Associate Degree ◽  
Construction Projects ◽  
Financial Risk ◽  
Large Scale ◽  
Minimum Degree ◽  
Road Construction ◽  
Public Private Partnership ◽  
Private Partnership ◽  
Political Risks ◽  
Research Population

AbstractPrivate section investment in the construction of transportation infrastructure, one of the most important of which is freeway projects, has been extensively used in developing countries in recent decades. However, in many cases due to the lack of necessary investigations and studies, the criteria have not been properly identified and, as a result, the proper way of participating in large-scale transport projects has resulted in numerous problems and, in some cases, project failure. However, choosing a private-public partnership will have a major impact on the success of freeway construction. However, due to the current conditions of the country’s economy, these projects are following with some risks. Therefore, in this study, the financial risk assessment of “public-private partnership” financing for road construction projects in Iran was investigated using the uncertainty approach and the BAS method. The research population of this study consisted of 23 researchers and experts with Ph.D. degree in finance with minimum degree of associate degree and experience of research and financial consulting in investment firms. According to the results, the lack of stability in planning and implementation of government programs and political risks, increases the risk of road construction projects and, in this regard, controlling the price fluctuations and bank financing of road construction projects can reduce the risk of these projects.

scholarly journals The Mechanism for Managing Energy-Efficient Low-Rise Investment and Construction Projects Based on Public-Private Partnerships

2020 ◽  
Vol 11 (1) ◽  
Author(s):  
Kristina Filyushina
Keyword(s):  
Construction Projects ◽  
Large Scale ◽  
Housing Stock ◽  
Public Private Partnership ◽  
Housing Construction ◽  
Environmental Friendliness ◽  
Private Partnership ◽  
The Public ◽  
Housing Issue ◽  
Emergency Housing

The housing issue in Russia today is the most important and currently topical, since there is a great need for new housing, due to the significant number of people who need housing, as well as the need to solve the problem of relocating citizens from the dilapidated (emergency) housing stock. An analysis of the current scientific literature indicates poor knowledge of the issues of investment and construction projects aimed at low-rise housing construction, namely: imperfection of the regulatory framework on the issue under consideration, insufficient literature on low-rise housing construction. A detailed study also requires the issues of organizing the process of low-rise construction, developing the mechanisms for managing low-rise construction, construction of the housing that meets the necessary requirements of availability, safety, comfort, energy efficiency and environmental friendliness. The article discusses the issues related to evaluating the operational, organizational and investment attractiveness of investment-construction projects of the low-rise construction necessary for development of a mechanism of managing the investment-construction projects on the basis of the public-private partnership in terms of the implementing the project of low-rise housing on the basis of public private partnership for large-scale housing development in the suburbs of Tomsk.

Development of public-private partnerships in the regional dimension

2020 ◽  
Vol 93 (4) ◽  
pp. 133-145
Author(s):  
T. M. Barbysheva ◽  
Keyword(s):  
Public Administration ◽  
Russian Federation ◽  
Large Scale ◽  
Public Private Partnership ◽  
Financial Resources ◽  
Business And Society ◽  
Private Business ◽  
Private Partnership ◽  
The Subject ◽  
The Russian Federation

Public-private partnership (PPP) in the conditions of the set strategic tasks by the President of the Russian Federation until 2030 can become one of the sources of attracting financial resources for implementation of the large-scale projects. In this regard, it is relevant to systematize the forms of PPPs and the scope of their application. Based on a study of different views on the essence of PPP, as well as taking into account the development of public administration in Russia, the author proposed the use of public-public-private partnership as a form of development of cooperation between the state, private business and society. The polyformism of PPPs is reflected in the presented classification. Based on the analysis of PPP development in the regional context, hypothesis on the correlation between the level of PPP and the socio-economic development of the subject of the Russian Federation was confirmed.

scholarly journals Large-Scale Promotion of Animal Dung-based Domestic Biogas Digesters through Public Private Partnership: A Successful Case of Nepal

2012 ◽  
Vol 8 ◽  
pp. 29-33
Author(s):  
Govind Raj Pokharel ◽  
Arjun Bahadur Chettri
Keyword(s):  
Renewable Energy ◽  
Large Scale ◽  
Public Private Partnership ◽  
Small Scale ◽  
Private Partnership ◽  
Energy And Environment ◽  
Renewable Energy Technologies ◽  
Energy Technologies ◽  
Development Approach ◽  
Multi Stakeholder

Large-scale promotion of small scale decentralized renewable energy technologies to achieve a part of millennium development goal remained a great challenge until recently. However, a properly implementation of a public private partnership applied in biogas sector in Nepal has shown that scaling up of small scale renewable energy technologies is feasible if a multi-stakeholder sector development approach and favorable policy as well as modality is adopted. Nepal’s biogas program has been instrumental in helping to achieve some of the Millennium Development Goals (MDGs) by creating economic and social development opportunities in a sustainable way. Such model could also be widely replicated in any other renewable energy technologies and other continent of the world. DOI: http://dx.doi.org/10.3126/hn.v8i0.4908Hydro Nepal: Journal of Water, Energy and Environment Issue No. 8, 2011 JanuaryPage: 29-33Uploaded date: 17 June, 2011

scholarly journals CHALLENGES FACED IN PPP AND HAM MODEL AND THE NEED FOR AN ALTERNATIVE

2019 ◽  
Vol 10 (2) ◽  
pp. 82-93
Author(s):  
A. Jain ◽  
F. Khan ◽  
P. Gupta ◽  
K. Gupta ◽  
S. R. Yadav
Keyword(s):  
Questionnaire Survey ◽  
Financial Risk ◽  
Road Transport ◽  
Public Private Partnership ◽  
Private Partnership ◽  
Entire Process ◽  
Private Investor ◽  
Partnership Model ◽  
Key Stakeholders ◽  
Proposed Model

Public Private Partnership Model (PPP) by Ministry of Road Transport and Highways (MORTH) renewal was undertaken by introduction of the hybrid annuity model (HAM) wherein government decided to share the risk of financing by contributing 40% towards the project. With the launch of this scheme more than fifty percent projects got green signal in 201617 under the HAM scheme. This work compares these two models by undertaking a questionnaire survey from the key stakeholders involved in such projects and identifies challenges & risk faced and issues pertaining to delays and success of the proposed model. The outcome from the work highlights that funding has been a major challenge faced by PPP projects and thus innovation into the model is necessary. There also seems to be a lack of transparency in the entire process which makes it riskier for the private investor. It is also concluded from the work that financial risk is predominant whether it is a PPP or HAM model and thus a search for a new sustainable model that is sustainable is essential.

scholarly journals Improving the Mechanisms of Public-Private Partnership

2021 ◽  
Vol 12 (2) ◽  
pp. 242
Author(s):  
Aliya Zyalilevna Minnibaeva ◽  
Irina Yurievna Vaslavskaya ◽  
Irina Alexandrovna Koshkina ◽  
Artur Faridovich Ziyatdinov
Keyword(s):  
Large Scale ◽  
Structural Changes ◽  
Public Private Partnership ◽  
State Regulation ◽  
The State ◽  
Public Authorities ◽  
Private Partnership ◽  
Investment Projects ◽  
The Public ◽  
Activity State

Development of the Russian economy causes the growth of public requirements and structural changes connected with it directed to an increase in the efficiency of social and economic tasks solution. Need of partnership of the state and private business development for the solution of problems in the social and economic sphere predetermines by the insufficiency of opportunities of the public (budgetary) financing of investment projects, large-scale and significant for society. The public-private partnership (PPP) acts as one of the modern economic mechanisms allowing realizing the interaction of the state and business. The PPP, on the one side, represents a special form of influence of state authorities and management for the purpose of stimulation of business activity, and with another, acts as the economic mechanism of the solution of social and economic tasks. The article is devoted to the consideration of the public-private partnership mechanism as one of the most modern methods of economic activity state regulation which basis the basic coordination principle of the parties interests and allowing to combine interests and technologies of business. Need and the prospects of further development of mechanisms of state-private partnership on the basis of the state strategic planning are proved. Special attention is paid to the interrelation of development of public-private partnership and need of theoretical scientific research in the field of improvement of institutional, ensuring its realization. It is shown that the role of the mechanism of public-private partnership in the economy is defined, first of all, by its elements as subjects and objects of public-private partnership, priority spheres of realization. Authors allocate and describe a number of aspects of the mechanism of functioning of public-private partnership, namely: organizational and legal, financial and investment, technical and organizational, regional. In the article, the main problems connected with the development of the mechanism of PPP, including with lack of the description of concrete mechanisms of use of the majority of forms of PPP and lack of regulation of questions of division of powers between public authorities and business are allocated and proved.

scholarly journals OPPORTUNITIES AND RISK FACTORS IN PUBLIC-PRIVATE PARTNERSHIP ON ENERGY: A CRITICAL ANALYSIS OF SOLAR PHOTOVOLTAIC PLANT AT BAHAWALPUR

2018 ◽  
Vol 3 (2) ◽  
pp. 61-74 ◽  
Author(s):  
Bilal Anwar ◽  
Muhammad Imran Ashraf ◽  
Aftab Alam
Keyword(s):  
Large Scale ◽  
Social Acceptance ◽  
Public Private Partnership ◽  
Solar Pv ◽  
Pv System ◽  
Private Partnership ◽  
Cholistan Desert ◽  
Two Phases ◽  
Photovoltaic Plant ◽  
Political Economic

This study delineates a 1000 Megawatt (MW) very large scale Photovoltaic (PV) system designed in three phases, from which 100 MW has functional and the remaining two phases of 300MW, 600 MW has yet to be functional at Quaid-eAzam solar park (QSP) in Cholistan desert near Bahawalpur City of Pakistan. This study describes the opportunities and risks in the construction of solar PV plant (QSP), which is constructed through public-private partnership (3P).This study uses the case study as a part of research methodology. Firstly it explains about 3Ps, their various types and necessity. Secondly, explores the critical factors in the construction of QSP PV Plant through PESTLE (political, economic, social, technological, legal, environmental) analysis. Thirdly outlines the effect of RE projects on the socioeconomic status of the periphery which is ignored in previous studies. The recommendations will guide the policymakers how they can embed social acceptance in RE projects.

scholarly journals Reasons for Implementing Public-Private Partnership in Road Construction: Perspective from State-Owned Agencies and Private Sector in Ghana

2020 ◽  
Vol 3 (1) ◽  
pp. 23-25
Author(s):  
Simon Ofori Ametepey ◽  
William Gyadu-Asiedu ◽  
Clinton Aigbavboa ◽  
Clinton Aigbavboa
Keyword(s):  
Private Sector ◽  
Hypothesis Test ◽  
Road Construction ◽  
Public Private Partnership ◽  
Functional Responses ◽  
Private Partnership ◽  
The Road ◽  
Alternative Means ◽  
The Government ◽  
Shared Risk

Presently, there is a request by various stakeholders in the road construction sector to embrace public-private partnership (PPP) as an alternative means of solving the road infrastructure deficit in Ghana. To this end, the study sought to identify the underlying reasons for implementing public-private partnership in road construction in Ghana. It also intends to examine the differences in the perception of these reasons by the State-owned Road Agencies (SRA) (who represent the government) and the Private Sector (PS). A questionnaire survey was used to elicit the perceptions of the SRA and PS on the underlying reasons for implementing PPP in road construction in Ghana. An in-depth interview was also conducted among four PPP “experts” in Ghana. Seventy-six functional responses were analysed using Statistical Package for the Social Science (SPSS) to rank the importance of the reasons based on the overall responses, as well as the responses from both the SRA and the PS and to examine the differences in the perceptions between the two groups. “Shortage of government funding”, “Political pressure”, “Economic development pressure of demanding more facilities”, “accelerate project development”, “Allowance for shared risk”, “Ability to raise funds for project by private sector”, and “Facilitate creative and innovative approaches” were found to be the seven most important reasons for adopting PPP in road construction in Ghana. In terms of the differences in perception between the SRA and PS groups, the hypothesis test results indicated that significant differences exist for only a few of the reasons.

Determination of government guarantee and revenue cap in public–private partnership contracts

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hongyu Jin ◽  
Shijing Liu ◽  
Jun Li ◽  
Chunlu Liu
Keyword(s):  
Financial Risk ◽  
Public Private Partnership ◽  
Risk Allocation ◽  
Financial Risks ◽  
Private Partnership ◽  
Content Type ◽  
Government Guarantee ◽  
Determination Process ◽  
The Government ◽  
Private Investors

PurposeConsidering there is a lack of research in determining the optimal levels of government guarantee and revenue cap, the objective of this research is to determine their optimal levels to achieve a reasonable financial risk allocation between governments and private investors while avoiding overly lucrative conditions for private investors.Design/methodology/approachExpanded net present value (NPV) analysis and bargaining game theory are employed to construct the core of the determination process. The risk gap between governments and private investors is assessed via an expanded NPV analysis to see if the financial risk has been shared reasonably, based on which the range of the government guarantee is decided. A bargaining model is then created to help locate the optimal level of the government guarantee. Finally, a revenue cap, often combined with the government guarantee in public–private partnership (PPP) agreements, will be determined if overly lucrative conditions for private investors are observed or governments suffer a risk spillover.FindingsReferring to a real PPP project in Australia, Project BA is created to validate the applicability of the proposed determination process. The outcome shows that the proposed determination process in this paper is capable of determining the optimal levels of government guarantee and revenue cap. The government preferences towards risk allocation will influence the values of the optimal levels. Governments may also consider to alleviate the control over investors' net profits to mobilise private investors into PPP projects.Research limitations/implicationsThere is a potential possibility that the revenue cap fails to control the financial risk for governments or the overly lucrative condition for private investors. In other words, even though the revenue cap is set at the minimal level, the financial risk for governments still beyond their tolerance range or the overly lucrative condition for private investors still occurs. Future research may focus on other financial protective schemes which help to better control the financial risks for governments and profits for private investors.Originality/valueGovernment guarantees are frequently used as an investment incentive to reduce the probabilities of suffering loss for private investors. Nevertheless, the financial risks for governments may increase after providing guarantees and, as a result, revenue cap is required by governments to avoid placing themselves in an unprotected situation. By recognising the importance of the two contractual parameters, many scholars dig into their option values. However, there are very rare research works focussing on the method of determining the specific levels of government guarantee and revenue cap. To overcome the limitations of existing models and enrich the methodology for government guarantee and revenue cap determination, this paper contributes to the body of knowledge by developing a government guarantee and revenue cap determination process which contributes to a reasonable allocation of financial risks between governments and private investors.

SYSTEMATIZATION OF INTERNATIONAL AND DOMESTIC EXPERIENCE IN PROJECT MANAGEMENT AIMED AT ADAPTING PUBLIC-PRIVATE PARTNERSHIPS TO THE IMPLEMENTATION OF SUSTAINABLE ENERGY DEVELOPMENT PROGRAMS

2021 ◽  
pp. 42-54
Author(s):  
I. Chupryna ◽  
R. Tormosov ◽  
K. Chupryna ◽  
M. Oleksandr ◽  
P. Natali
Keyword(s):  
Energy Efficiency ◽  
Project Management ◽  
Large Scale ◽  
Public Private Partnership ◽  
Public Private Partnerships ◽  
Development Programs ◽  
Economic Stability ◽  
Private Partnership ◽  
Improve Energy Efficiency ◽  
Energy Independence

European countries are recognized leaders in the use of public-private partnerships in project management for large-scale infrastructure projects, including those that contribute to energy efficiency in various sectors of the economy. Their experience is a useful example for Ukraine in its quest for energy independence and economic stability. Establishing partnerships with business will increase the resources of the state and promote the involvement of the private sector in the implementation of profitable and image projects for both stakeholders. The development of mechanisms and recommendations for the development of public-private partnership (PPP) should be preceded by an analysis of international experience in creating a favorable and attractive environment in which public-private partnerships can be intensified. Since energy efficiency is the key to the successful functioning of the economy of any state, it is necessary, creating the conditions for the successful functioning of public-private partnership, to develop programs and projects to improve energy efficiency, which will be implemented under the PPP on a priority basis.

Sign in / Sign up

Export Citation Format

Share Document