scholarly journals GOVERNMENT MOTIVATION-EMBEDDED RETURN GUARANTEE FOR URBAN INFRASTRUCTURE PROJECTS BASED ON REAL OPTIONS

2016 ◽  
Vol 22 (7) ◽  
pp. 954-966 ◽  
Author(s):  
Qingpeng MAN ◽  
Chengshuang SUN ◽  
Yuesheng FEI ◽  
Martin SKITMORE ◽  
Yong BAI ◽  
...  
Keyword(s):  
Real Options ◽  
Return On Investment ◽  
Urban Infrastructure ◽  
Chinese Government ◽  
Infrastructure Development ◽  
Systematic Method ◽  
Main Method ◽  
Valuation Model ◽  
Government Guarantee ◽  
The Government

Governments usually guarantee the amount of investment income to private sector partners to encourage their participation in Public-Private Partnership urban infrastructure development projects, with the ‘float return on investment guarantee’ being the main method in use by the Chinese government today. The current problems with the float return on investment guarantee are analysed and a guarantee approach with embedded motivatio nal behaviour is presented as an alternative. A pricing method option is then introduced as the motivation-embedded return guarantee has similar charac­teristics to real options. From this, a valuation model is developed that provides the basis of a new systematic method for calculating the government guarantee value.

scholarly journals VALUE OF INVESTORS’ ESCALATION OF COMMITMENT IN PPP PROJECTS USING REAL OPTION THINKING

2020 ◽  
Vol 24 (5) ◽  
pp. 348-364
Author(s):  
Ruolan Gao ◽  
Jicai Liu
Keyword(s):  
Return On Investment ◽  
Real Option ◽  
Threshold Model ◽  
Escalation Of Commitment ◽  
Government Guarantee ◽  
Asset Value ◽  
Behavioral Preferences ◽  
Total Investment ◽  
Belief Adjustment ◽  
The Government

Escalation of commitment (EOC) is a common behavior among investors who receive negative feedback (NF) in public-private partnership (PPP) projects, and this behavior typically leads to sizable losses. Recognizing this, investors set a mental threshold and track investments for escalation. Once losses reach the threshold, investors will terminate the escalation behavior, namely, they will transfer projects to governments to obtain compensation or residual asset value. This paper analyzes the maximum amount of NF that investors can sustain based on a belief-adjustment model, followed by the analysis of the greatest loss degree. Then, a threshold model for EOC is constructed using real option thinking. Different from the usual judgment criteria of the traditional option method, the threshold is less than zero in the EOC scenario. The results show that the threshold correlates with the initial generative cognition, the sunk cost level, the degree of the government guarantee and investors’ behavioral preferences as well as with total investment and return on investment. These findings serve as a reference for governments to de-escalate investors’ commitment in PPP projects.

scholarly journals Real options analysis of revenue risk sharing in post-disaster housing reconstruction

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Vahdatmanesh ◽  
Afshin Firouzi ◽  
James Olabode Bamidele Rotimi
Keyword(s):  
Real Options ◽  
Risk Sharing ◽  
Real Options Analysis ◽  
Content Type ◽  
Valuation Model ◽  
Land Readjustment ◽  
The Government ◽  
Housing Reconstruction ◽  
Private Investors ◽  
Post Disaster

Purpose Post-disaster housing reconstruction (PDHR) demands a considerable percentage of global property investment, yet the post-disaster environment presents intricate challenges to reconstruction financing for governments and at the same time, revenue uncertainty for private investors. The purpose of this study is to develop a methodology for tackling land shortage and the financial challenges of PDHR in the aftermath of a disaster. Design/methodology/approach This study developed a methodology based on a combined minimum revenue guarantee and maximum revenue cap model using a well-established real options analysis (ROA) for revenue risk sharing in PDHR projects and land readjustment (LR) for finance. The applicability of the purported model is demonstrated through an illustrative example. Findings The results show that flexibility in the options could increase the PDHR contractor’s risk profile by increasing the expected value of the contractor investment and reducing the probability of investment loss. On the other side, a cap on the contractor revenue stream would allow the government to benefit from any excess in revenue and would counterbalance the value of the option. Practical implications The framework proposed in this study could serve as a practical risk-revenue sharing in PDHR projects. Governments and policymakers could use the findings to enable the successful delivery of PDHR projects and consequently bring the quality of life of affected people to pre-disaster conditions. Originality/value This study can be considered as a first attempt toward the use of the Australian barrier style options structure, and the trinomial lattice valuation model in PDHR projects, which incorporates LR, public-private partnerships, governmental guarantees and PDHR concepts in one ROA-based framework.

BRIDGE BUILDING AS A PROBLEM OF URBAN INFRASTRUCTURE DEVELOPMENT IN THE EUROPEAN NORTH OF RUSSIA IN THE EARLY XX CENTURY

2019 ◽  
Vol 15 (2) ◽  
pp. 125-135
Author(s):  
Tatiana S. Minaeva ◽  
Sergey S. Gulyaev
Keyword(s):  
Urban Infrastructure ◽  
Local Administration ◽  
Infrastructure Development ◽  
European North ◽  
Long Time ◽  
History Of ◽  
Floating Bridge ◽  
Historical Comparative ◽  
Bridge Building ◽  
Xix Century

Introduction. The organization of transport links and the bridge building in cities located on the banks of wide rivers has always been one of the most important tasks of the local administration. The study of the history of bridge building allows not only to trace the process of modernization of different regions of the country, but also to help in solving similar problems of our time. Nevertheless, the history of Russian bridge building is poorly studied. The purpose of the article is to determine the characteristics and features of the organization of bridge building in big cities of the European North of Russia as a way to solve one of the problems of urban infrastructure in the early XX century. Materials and Methods. The sources for this study are the documents of the State archive of the Arkhangelsk region, published documents on the history of Vologda, articles in the local periodicals of the early XX century. The analysis of the studied problem used a systematic approach, the method of economic analysis, historical and historical-comparative methods. Results and Discussion. The building of permanent bridges was a need for the development of Arkhangelsk and Vologda. In Vologda the two wooden bridges were built in the middle of XIX century on city funds and in the future these bridges were repaired or rebuilt. The Arkhangelsk city authorities did not hurry to solve a problem of city infrastructure by own efforts and a long time they used the floating bridge. The lack of experience in the building of large bridges and the desire to save money led to the rapid destruction of the first permanent bridge in Arkhangelsk. Conclusion. The Development of trade and industry in cities of the European North of Russia, such as Arkhangelsk and Vologda, led to the expansion of their territory and the emergence over time, the so-called third parts of the cities. Despite the comparable size of the population of the districts located across the river, the process of connecting them with bridges to the rest of the city went at different rates, which depended on the attitude of the local administration to the problem of urban infrastructure.

Systematization of the smart city civil engineering infrastructure

2020 ◽  
Vol 18 (4) ◽  
pp. 765-779
Author(s):  
E.V. Popov ◽  
K.A. Semyachkov ◽  
K.V. Zhunusova
Keyword(s):  
Smart City ◽  
Process Management ◽  
Smart Cities ◽  
Digital Technologies ◽  
Urban Infrastructure ◽  
Infrastructure Development ◽  
Economic Innovation ◽  
Civil Engineering Infrastructure ◽  
Functional Transformations

Subject. This article explores the basic elements of the engineering infrastructure of smart cities. Objectives. The article aims to systematize theoretical descriptions of the engineering infrastructure of a smart city. Methods. For the study, we used a logical analysis and systematization. Results. The article highlights the main areas of infrastructure development of smart cities. Conclusions. Improving process management mechanisms, optimizing urban infrastructure, increasing the use of digital technologies, and developing socio-economic innovation improve the quality of the urban environment in a digitalized environment. And improving the efficiency of urban planning and security, studying its properties and characteristics, and forming an effective urban information system lead to its functional transformations.

How to Tell the Truth without Outraging the Press?

MedienJournal ◽  
2017 ◽  
Vol 30 (2-3) ◽  
pp. 37
Author(s):  
Li Xiguang
Keyword(s):  
News Media ◽  
Public Affairs ◽  
Chinese Government ◽  
Government Officials ◽  
The Public ◽  
News Stories ◽  
The Press ◽  
The Media ◽  
The Government ◽  
Chinese News Media

The commercialization of meclia in China has cultivated a new journalism business model characterized with scandalization, sensationalization, exaggeration, oversimplification, highly opinionated news stories, one-sidedly reporting, fabrication and hate reporting, which have clone more harm than good to the public affairs. Today the Chinese journalists are more prey to the manipu/ation of the emotions of the audiences than being a faithful messenger for the public. Une/er such a media environment, in case of news events, particularly, during crisis, it is not the media being scared by the government. but the media itself is scaring the government into silence. The Chinese news media have grown so negative and so cynica/ that it has produced growing popular clistrust of the government and the government officials. Entering a freer but fearful commercially mediated society, the Chinese government is totally tmprepared in engaging the Chinese press effectively and has lost its ability for setting public agenda and shaping public opinions. 

PENGARUH PEMBANGUNAN INFRASTRUKTUR TERHADAP PDRB DI PROVINSI INDONESIA

Wahana ◽  
2019 ◽  
Vol 22 (1) ◽  
pp. 15-27
Author(s):  
Suripto Suripto ◽  
Eva Dwi Lestari
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Panel Data ◽  
Infrastructure Investment ◽  
Water Infrastructure ◽  
Infrastructure Development ◽  
Road Infrastructure ◽  
Health Infrastructure ◽  
Spatial Coverage ◽  
The Government

Economic growth is one indicator to measure  the success of economic development in a country. Economic development is closely related to infrastructure. Infrastructure development will have an impact on economic growth both directly and indirectly. Therefore, the role of the government in determining infrastructure development policies is very important to increase economic growth in Indonesia. The purpose of this study is to determine the effect of infrastructure on economic growth in Indonesia including road infrastructure, electricity infrastructure, investment, water infrastructure, education infrastructure and health infrastructure in Indonesia in 2015-2017.The analytical tool used in this study is panel data regression with the approach of Fixed Effect Model. The spatial coverage of this study is all provinces in Indonesia, namely 34 provinces, with a series of data from 2015 to 2017 with a total of 102 observations. The data used is secondary data obtained from BPS Indonesia.The results of the study show that (1) the road infrastructure variables have a negative and not significant effect on GDRP. (2) electrical infrastructure variables have a negative and not significant effect on GDRP. (3) investment variables have a positive and significant effect on GDRP. (4) water infrastructure variables have a positive and not significant effect on GDRP. (5) educational infrastructure variables have a positive and not significant effect on GDRP. (6) health infrastructure variables have a positive and significant effect on GDRP. Keywords: development, infrastructure, investment, GDRP, panel data

Normative Juridical Review Comparison of Land Acquisition Regulations for Railway Infrastructure between Indonesia and Malaysia

2020 ◽  
Vol 4 (1) ◽  
Author(s):  
Dhina Setyo Oktaria ◽  
Agustinus Prasetyo Edi Wibowo
Keyword(s):  
Public Interest ◽  
Influencing Factor ◽  
Land Acquisition ◽  
Infrastructure Development ◽  
The Public ◽  
Indonesian Government ◽  
The People ◽  
Railway Infrastructure ◽  
The World ◽  
The Government

Land acquisition for public purposes, including for the construction of railroad infrastructure, is a matter that is proposed by all countries in the world. The Indonesian government or the Malaysian royal government needs land for railroad infrastructure development. To realize this, a regulation was made that became the legal umbrella for the government or royal government. The people must agree to regulations that require it. Land acquisition for public use in Malaysia can be completed quickly in Indonesia. The influencing factor is the different perceptions of the understanding of what are in the public interest, history and legal systems of the two countries as well as the people's reaction from the two countries

Community Development and Role of Tourism: A Case Study of Tourist Destination Manali in Himachal Pradesh (India)

2016 ◽  
Vol 2 (1) ◽  
Author(s):  
Sunil
Keyword(s):  
Traffic Congestion ◽  
Local Community ◽  
Negative Impact ◽  
Himachal Pradesh ◽  
Tourism Industry ◽  
Cultural Development ◽  
Infrastructure Development ◽  
Tourism Sector ◽  
The Government ◽  
Agriculture Products

Tourism sector has a significant role in the economic development of our country. Tourism sector has contributed 6.88 percent to the GDP and has 12.36 percent share in employment (direct and indirect) in the year 2014. It has also a significant share in foreign exchange earnings. The benefit of tourism mostly goes to the local community (Sonya & Jacqueline, Mansour E. Zaei & Mahin E. Zaei, 2013). In this paper, an attempt has been made to assess how the tourism industry has created an opportunity for the economic, political, social and cultural development of the local community at Manali in Himachal Pradesh (India) and also tried to study the problems that are associated with the tourism in the region. The study found that the tourism industry has been extending its contribution for the development of local community at Manali. It has been providing employment, business and investment opportunities, revenue generation for the government, encouraging the community to promote and preserve its art, culture and heritage, raising the demand of agriculture products, provided opportunities for local people to run and work in the transport business and by promoting MSMEs in the region. Besides the opportunities, the tourism industry has also added many problems to the local community. Traffic congestion, increase in water and air pollution, solid waste generation, degradation of the cultural heritage, ecological imbalances, rise in cost of living, increase in crime, noise and environment pollution, migration of people to the region, negative impact on local culture, and extra pressure on civic services during the tourists season, are the problems associated with the tourism. The study suggest that effective management of natural resources, dissemination of environment protection information, involvement of local community in decision making, professionalization in the working of local administration, extending the support of government in sponsoring the events, infrastructure development, tracking records of migrants with the help of local community to curb the crime rate, promotion and preservation of art, culture and heritage, involvement of NGOs, compliance of the rules can make tourism more beneficial in the development of local community.

scholarly journals WASH Financial and Social Investment Dynamics in a Conflict-Arid District of Jariban in Somalia

2021 ◽  
Vol 13 (9) ◽  
pp. 4836
Author(s):  
Wonder Mafuta ◽  
Jethro Zuwarimwe ◽  
Marizvikuru Mwale
Keyword(s):  
State Government ◽  
Random Number Generator ◽  
Limited Resource ◽  
Infrastructure Development ◽  
Group Discussions ◽  
Sanitation Services ◽  
The Social ◽  
Access To Water ◽  
Infrastructure Investments ◽  
The Government

The paper investigated the social and financial resources’ interface in WASH programmes for vulnerable communities. Nineteen villages were randomly selected from the Jariban district in Somalia using the random number generator based on the village list. Data was collected in a sequential methodology that started with transect walks to observe and record the WASH infrastructure. Thirty-eight focus group discussions and desktop reviews triangulated transact walk recordings. The findings indicate minimum to zero investments towards WASH infrastructure in Jariban from the state government, with more dependency on the donor community. The study revealed that resources for the construction of latrines and water sources come from the following sources, NGOs (54.3%), diaspora community (34.5%) and community contributions (11.2%). The findings revealed a backlog in the WASH infrastructure, resulting in low access to water supply and sanitation services. The results demonstrate limited resource allocation by both the government and community, affecting the WASH infrastructure’s sustainability and further development. Due to the backlog in investments, particularly on improved latrines, it is concluded that their usage is low and a hindrance to having access to sanitation, hygiene and water as per the SDG goals, of leaving no one behind. While investment towards WASH in Jariban demonstrates multiple potential sources, there is a need to strengthen domestic resource mobilisation and explore governments’ role and capacity to secure WASH infrastructure investments. It is also recommended to explore how to tax the remittances to fund WASH infrastructure development and the private sector’s role in WASH infrastructure investment.

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