FINANCING ROAD PROJECTS BY PRIVATE FINANCE INITIATIVE: CURRENT PRACTICE IN THE UK WITH A CASE STUDY / PRIVATUS KELIŲ PROJEKTŲ FINANSAVIMAS: ŠIUOLAIKINĖ PRAKTIKA JUNGTINĖJE KARALYSTĖJE / ЧАСТНОЕ ФИНАНСИРОВАНИЕ ДОРОЖНЫХ ПРОЕКТОВ: СОВРЕМЕННАЯ ПРАКТИКА, ПРИМЕНЯЕМАЯ В ВЕЛИКОБРИТАНИИ

Transport ◽  
2011 ◽  
Vol 26 (2) ◽  
pp. 208-215 ◽  
Author(s):  
Rifat Akbiyikli ◽  
Seyyit Umit Dikmen ◽  
David Eaton
Keyword(s):  
Large Scale ◽  
Public Agencies ◽  
Private Finance Initiative ◽  
Private Finance ◽  
Public Projects ◽  
Road Projects ◽  
Legal Structures ◽  
The Uk ◽  
Capital Intensive

The necessity of funds for investment in capital intensive public projects has pushed public agencies to search for new procurement alternatives. Thus, in the early 1980s, the idea of private finance initiative (PFI) as a method of financing large-scale, capital intensive projects emerged in Australia. The method is aimed at resolving the shortage of public funds for major investments through the funding capability of private entities. Later, the method was widely used by other governments with the same name or different names such as BOT (build-operate-transfer) in the countries having different legal structures. This paper describes the mechanism of PFI used by the UK Government and evaluates three case studies in achieving the essential characteristics of adequate risk transfer and value for money to the taxpayer. Santrauka Fondų poreikis investuoti į intensyvaus kapitalo viešuosius projektus pastūmėjo viešąsias įstaigas ieškoti naujų turto įsigijimo alternatyvų. Dar praeito amžiaus devintajame dešimtmetyje Australijoje atsirado būdas finansuoti didžiulius, daug kapitalo reikalaujančius projektus – privataus finansavimo iniciatyvos idėja. Šiuo metodu siekiama išspręsti viešųjų lėšų trūkumo problemą, daugeliu atvejų skiriant lėšas iš privačių organizacijų fondų. Vėliau minėtąjį metodą plačiai taikė kitų šalių su skirtingomis teisinėmis struktūromis vyriausybės. Straipsnyje paaiškinamas privataus finansavimo iniciatyvos mechanizmas, kurį taiko Jungtinės Karalystės vyriausybė ir įvertinami trijų atliktų tyrimų rezultatai, pateikiamos pagrindinės charakteristikos. Резюме Потребность в фондах для инвестирования капитала в общественные проекты привела к тому, что общественные учреждения вынуждены искать новые альтернативы для приобретения имущества. Еще в 80-е годы прошлого столетия в Австралии родилась идея, как финансировать глобальные проекты, требующие большого количества средств, – так называемая идея частного финансирования. Этот способ позволяет решить проблему нехватки общественных средств, при этом средства выделяются из фондов частных организаций. Позже упомянутый способ широко использовался правительствами разных стран с разными правовыми структурами. В статье объясняется механизм инициативы частного финансирования. Данный механизм используется правительством Великобритании, в нем сочетаются результаты трех проведенных исследований, характеристики которых представлены в статье.

scholarly journals Private Finance Initiative (PFI) for Road Projects in UK: Current Practice with a Case Study

2011 ◽  
Vol 23 (3) ◽  
pp. 215-223
Author(s):  
Rifat Akbiyikli ◽  
Seyyit Umit Dikmen ◽  
David Eaton
Keyword(s):  
Large Scale ◽  
Private Finance Initiative ◽  
Private Finance ◽  
A Value ◽  
Risk Management Process ◽  
Road Project ◽  
Road Projects ◽  
Capital Intensive

The long-term sustainable provision of new and high quality maintained road stock is vitally important, especially in times of economic constraint such as Europe is currently experiencing. The Private Finance Initiative (PFI) is one method of financing such large-scale, capital intensive projects. An important aspect of this form of financing projects is that the risks are borne not only by the sponsors but are shared by different types of investors such as equity holders, debt providers, and quasi-equity investors. Consequently, a comprehensive and heuristic risk management process is essential for the success of the project. The proposition made within this paper is that the PFI mechanism provides a Value-for-Money and effective mechanism to achieve this. The structure of this PFI finance and investment on a particular road project therefore enables all project stakeholders to take a long-term perspective. This long-term perspective is reflected in the mechanism of a case study of UK – Class A trunk roads which are examined in detail. This paper presents a novel solution to a modern dilemma.

scholarly journals ACHIEVING SUSTAINABLE CONSTRUCTION WITHIN PRIVATE FINANCE INITIATIVE (PFI) ROAD PROJECTS IN THE UK

2012 ◽  
Vol 18 (2) ◽  
pp. 207-229 ◽  
Author(s):  
Rifat Akbiyikli ◽  
David Eaton ◽  
Seyyit Umit Dikmen
Keyword(s):  
Construction Industry ◽  
Case Study Research ◽  
Sustainable Construction ◽  
Private Finance Initiative ◽  
Substantial Impact ◽  
Private Finance ◽  
Sustainable Implementation ◽  
Road Projects ◽  
Novel Concept ◽  
The Uk

The construction industry is facing the challenge of increasing demands of its sustainability performance. The construction and maintenance of the built environment has substantial impact on the sustainability of the environment. Meanwhile, public sector clients are increasingly asking for a sustainable approach in their specification and procurement decisions, sustainability is still seen as a novel concept within the construction industry in many parts of the world without a settled definition. The premise of this study is that the interaction between road projects realized by the private finance initiative and their delivery in the UK improve sustainability. The paper, based on the case study research, explains the sustainability implementation in two PFI road projects and demonstrates that the PFI mechanism facilitates sustainable implementation to a far greater extent than is achievable using traditional procurement methods.

Risk Transferin Public Private Partnership/Private Finance Initiative Procurement Documents:The Differencebetween The United Kingdom and Malaysia

2016 ◽  
Vol 4 (4) ◽  
pp. 30
Author(s):  
Nooriha Abdullah ◽  
Darinka Asenova ◽  
Stephen J. Bailey
Keyword(s):  
United Kingdom ◽  
Public Procurement ◽  
Research Question ◽  
Public Private Partnership ◽  
Private Finance Initiative ◽  
Private Partnership ◽  
Risk Transfer ◽  
Private Finance ◽  
The United Kingdom ◽  
The Uk

The aim of this paper is to analyse the risk transfer issue in Public Private Partnership/Private Finance Initiative (PPP/PFI) procurement documents in the United Kingdom (UK) and Malaysia. It utilises qualitative research methods using documentation and interviews for data collection. The UK documents (guidelines and contracts) identify the risks related to this form of public procurement of services and makeexplicittheappropriateallocation of those risks between the public and the private sector PPP/PFI partners and so the types of risks each party should bear. However, in Malaysia, such allocation of risks was not mentioned in PPP/PFI guidelines. Hence, a question arises regarding whether risk transfer exists in Malaysian PPP/PFI projects, whether in contracts or by other means. This research question is the rationale for the comparative analysis ofdocumentsand practicesrelatingtorisk transfer in the PPP/PFI procurements in both countries. The results clarify risk-related issues that arise in implementing PPP/PFI procurement in Malaysia, in particular how risk is conceptualised, recognised and allocated (whether explicitly or implicitly), whether or not that allocation is intended to achieve optimum risk transfer, and so the implications forachievement ofvalue for moneyor other such objectivesinPPP/PFI.

The Private Finance Initiative in the UK

2007 ◽  
Vol 9 (2) ◽  
pp. 289-310 ◽  
Author(s):  
Rob Ball ◽  
Maryanne Heafey ◽  
Dave King
Keyword(s):  
Private Finance Initiative ◽  
Private Finance ◽  
The Uk

Extending the Information-Processing View of Coordination in Public Sector Crisis Response

2012 ◽  
pp. 326-345
Author(s):  
Rafael A. Gonzalez ◽  
Alexander Verbraeck ◽  
Ajantha Dahanayake
Keyword(s):  
Information Processing ◽  
Public Sector ◽  
Communication Technology ◽  
Large Scale ◽  
Crisis Response ◽  
Public Agencies ◽  
The Public ◽  
Information And Communication ◽  
Emergent Coordination

Coordinating the response of multiple public agencies to a large-scale crisis is a challenge that has been studied predominantly according to the information-processing view. In this paper, the authors extend this view with the notion of emergence giving special attention to information and communication technology (ICT). The extended framework is applied in a case study of crisis response exercises in the public sector. The findings suggest that current practices concentrate on standards and hierarchy, but mutual adjustment and emergent coordination also occur and are susceptible to analysis and equally relevant to understand coordination practices. In addition, ICT can provide information processing capabilities needed for coordination but may also create information processing needs by increasing the volume of data and the interconnectedness of responders. Applying the extended framework improves the understanding of coordination and forms the basis for its future use in designing ICT to support coordination in crisis response and e-government.

Extending the Information-Processing View of Coordination in Public Sector Crisis Response

2010 ◽  
Vol 6 (4) ◽  
pp. 25-44 ◽  
Author(s):  
Rafael A. Gonzalez ◽  
Alexander Verbraeck ◽  
Ajantha Dahanayake
Keyword(s):  
Information Processing ◽  
Public Sector ◽  
Communication Technology ◽  
Large Scale ◽  
Crisis Response ◽  
Public Agencies ◽  
The Public ◽  
Information And Communication ◽  
Emergent Coordination

Coordinating the response of multiple public agencies to a large-scale crisis is a challenge that has been studied predominantly according to the information-processing view. In this paper, the authors extend this view with the notion of emergence giving special attention to information and communication technology (ICT). The extended framework is applied in a case study of crisis response exercises in the public sector. The findings suggest that current practices concentrate on standards and hierarchy, but mutual adjustment and emergent coordination also occur and are susceptible to analysis and equally relevant to understand coordination practices. In addition, ICT can provide information processing capabilities needed for coordination but may also create information processing needs by increasing the volume of data and the interconnectedness of responders. Applying the extended framework improves the understanding of coordination and forms the basis for its future use in designing ICT to support coordination in crisis response and e-government.

The leading small group: an institutional innovation for PPP projects in China

2019 ◽  
Vol 9 (2) ◽  
pp. 291-301 ◽  
Author(s):  
Yajian Zhang ◽  
Willie Tan
Keyword(s):  
Small Group ◽  
Large Scale ◽  
Good Governance ◽  
Secondary Data ◽  
Coordination Mechanism ◽  
Waste To Energy ◽  
Public Agencies ◽  
Content Type ◽  
High Level

Purpose It is widely recognized that large-scale public–private partnership (PPP) projects require an effective coordination mechanism among various stakeholders throughout the project life cycle. The purpose of this paper is to provide an insight into how this may be achieved through the leading small group (LSG), which is a distinctive informal Chinese institution for coordination among various public agencies. Design/methodology/approach An in-depth case study using secondary data and five in-depth interviews with two staff members from the developer and three government officials involved is used to probe into how the LSG functions during the various development phases of the Yangzhou Teda Waste-to-Energy project. Findings The main finding is that, conditional on its capacity, the LSG coordinated various public agencies to promote fast project implementation and ensure its smooth operation by making high-level decisions, facilitating quick permits and approvals, and mitigating the risks. However, formalization and participation from other stakeholders are needed to ensure good governance. Research limitations/implications Because it is an exploratory case study, the findings cannot be readily generalized. Further research can be done to compare the performance of LSGs in different Chinese cities and PPP projects. Practical implications It is supposed that this paper can provide implications of designing effective coordination mechanisms for managing large-scale PPP projects. Originality/value This paper provides an account of the LSG as a distinctive Chinese coordination mechanism that has been rarely studied.

Research and the realities of the industry

2002 ◽  
Vol 6 (2) ◽  
pp. 101-106
Author(s):  
Colin Stansfield Smith
Keyword(s):  
Academic Staff ◽  
Research Assessment ◽  
Public Realm ◽  
General Sense ◽  
Private Finance Initiative ◽  
The Public ◽  
Private Finance ◽  
Current State ◽  
The Uk ◽  
Large Sections

As a former student of Leslie Martin I well understand that ‘in the UK, architecture's standing as a research-led University discipline remains as low as ever’ (arq 5/4, p291). But then I share my own generation's disbelief about the current state of the Profession and the failure of any architecture school to be awarded the highest rating (5*)in the latest Research Assessment Exercise (RAE). The internecine misunderstandings between practice and schools of architecture are hardly helpful to the cause: the Profession's refusal to understand the current plight of schools with regard to resources and the low esteem and status of academic staff and – in the reverse perspective – academia seems oblivious to the cowed posture of large sections of the Profession in a world driven by the imperatives of the government's Private Finance Initiative (PFI). This more or less symbolizes in a general sense the current client/architect relationship or lack of it in the public realm.

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