Search Results (7)

This study develops a dynamic risk modeling approach incorporating stock-and-flow structures to comprehensively evaluate the investment risks of highway PPP projects in Western China, aiming to promote sustainable infrastructure development. Through establishing a risk accumulation model with scenario simulation and sensitivity analysis, this study systematically examines the risk factors and their propagation pathways in Western China’s highway PPP projects. The research demonstrates the dynamic complexity of project risks, particularly highlighting the prominence of operation, maintenance, and government risks. Sensitivity analysis identifies five critical risk factors: financial support adequacy, public health contingencies, legal/regulatory robustness, inflation volatility, and project uniqueness. The study proposes targeted risk management strategies emphasizing the establishment of early-warning systems and emergency response plans for critical risks. Methodologically, this research advances infrastructure risk assessment by adapting stock-and-flow modeling conventions for threshold-driven risk screening, particularly suited to underdeveloped regions like Western China. The developed rapid risk determination tool provides practical decision support for stakeholders in similar socio-economic contexts. Full article

The purpose of this study was to investigate the buffering (moderating) effect of environmental uncertainty (EU) on the relationship between the critical success factors (CSFs) of public–private partnership projects (PPPPs) and sustainable performance. A survey approach was adopted to collect primary data from construction industries that have signed an agreement with the public sector. The public sector includes federal and provincial government departments such as the National Highway Authority (NHA) and the Frontier Works Organization (FWO) for the construction of roads, and the private sector includes engineering companies registered with the Pakistan engineering council. The non-probability convenience sampling technique was used to select the sample, and the Krejcie and Morgan table was used to calculate the sample size. A total of 500 questionnaires were distributed but 394 completed questionnaires were used in the analysis of the data, yielding a response rate of 78.8%. Confirmatory factor analysis was conducted to check the reliability and validity of the scales; the findings revealed that the scales met the threshold, and all the factor loadings, average variance extracted, composite reliability, Cronbach alpha, and discriminant validities met the cut-off level. Hence, the questionnaires were found to be reliable and valid. The results revealed that environmental uncertainty significantly moderates the CSFs (technical, procurement, and economic factors) of PPPs and the sustainable performance of PPPPs. Furthermore, the interaction terms of all moderating effects revealed negative beta values; this implies that a low level of uncertainty results in better economic performance, better technical and procurement factors, and highly sustainable performance. It is concluded from the findings that if EU is high, then the sustainability of PPPPs is low; moreover, fewer economic resources and no technical support and procurement also have a weak impact on enhancing sustainable performance. On the contrary, if EU is low, there is a high level of sustainability in PPPPs. Full article

Recently, in Chile, infrastructure asset value has been incorporated into highway concession contracts. However, the current valuation model used for rigid pavements is not adapted to the standards and conditions of such projects. This study develops a valuation model for rigid pavements of interurban highway concessions and evaluates it in a case study. The proposed model captures the loss in asset value associated with the performance degradation over time, considering a typical Jointed Plain Concrete Pavement (JCPC) configuration. The value is calculated using performance indicators that represent the structural capacity and level of service provided to road users. The model represents a significant improvement compared to current asset valuation models used in highway concessions. It enables the public agency to objectively evaluate the preservation of asset value carried out by the private partner during the concession. Additionally, it could also be used as a tool to establish payments between infrastructure stakeholders. Some of the concepts applied could also be relevant for other highway assets existing in Public–Private Partnership (PPP) projects. Full article

Budgetary constraints are prompting many governments to encourage private financing of transport infrastructure through public–private partnerships (PPPs). Fiscal support measures are often used to improve the financial feasibility of PPPs and to rebalance the economics of contracts to compensate for government-imposed changes. In the latter case, information asymmetry, political haste, and lack of competition may lead to poor government decisions in establishing support measures. Furthermore, lack of government support may lead to early termination of contracts and non-implementation of projects with high potential social benefits. This paper analyzes the awarding of subordinated public participation loans (SPPLs) to 10 brownfield shadow-toll highway PPPs in Spain after the government imposed additional works. It is hypothesized that, given the political importance of the projects and the viability problems they soon experienced, the government may not have set out the terms of SPPLs efficiently. This paper evaluates the financial and social impacts of awarding these loans to three of these projects to assess whether the government’s decision to support them was justified from a sustainable perspective. The results show that, while the government’s decision was reasonable, the design of the SPPL and its awarding conditions should be improved to ensure the public interest. Full article

Optimizing the cost and benefit allocation among multiple players in a public-private partnership (PPP) project is recognized to be a multi-objective optimization problem (MOP). When the least present value of revenue (LPVR) mechanism is adopted in the competitive procurement of PPPs, the MOP presents asymmetry in objective levels, control variables and action orders. This paper characterizes this asymmetrical MOP in Stackelberg theory and builds a bi-level programing model to solve it in order to support the decision-making activities of both the public and private sectors in negotiation. An intuitive algorithm based on the non-dominated sorting genetic algorithm III (NSGA III) framework is designed to generate Pareto solutions that allow decision-makers to choose optimal strategies from their own criteria. The effectiveness of the model and algorithm is validated via a real case of a highway PPP project. The results reveal that the PPP project will be financially infeasible without the transfer of certain amounts of exterior benefits into supplementary income for the private sector. Besides, the strategy of transferring minimum exterior benefits is more beneficial to the public sector than to users. Full article

Risk allocation plays a crucial role in the successful development of public-private partnership (PPP) projects. However, despite being an important topic for scholars and practitioners, the existing literature does not provide sufficient evidence on how managing risks in solicited (SP) and unsolicited (USP) road PPP projects, and subsequently, on what the sustainability implications are for such managerial processes. This study aims to extend risk allocation studies by analyzing contracts in Chilean highway PPPs over the last decade based on a systematic content analysis framework and case study data. The framework was developed through line-by-line coding of contract provisions associated with risk-related issues, and data were collected from semi-structured interviews with Chilean PPP practitioners. Results show that, although the majority of risks are either shared or transferred to the private party in most contracts, there are important variations in the way allocation procedures are implemented for SPs and USPs. Contracts analyzed revealed that risk arrangement mechanisms have usually focused on the economic dimension of sustainability without fully incorporating social and environmental considerations, increasing protests in the long-term. Conclusions indicate that risk allocation procedures and sustainability considerations are highly dependent on project-specific features and contextual factors. Overall, the analysis uncovers that the level of autonomy given to the private sector in both SPs and USPs has contributed to properly manage technical and economic risks, but has failed to successfully allocate social and environmental concerns. Full article

Recently, risk assessment has become one of the most challenging issues in the areas of construction and public-private partnerships (PPPs). To address risk assessment issues, various decision-making techniques have been proposed, each with its own specific disadvantages and advantages. This paper investigates step-wise weight assessment ratio analysis (SWARA), complex proportional assessment (COPRAS), fuzzy analytic network process (FANP), fuzzy analytic hierarchy process (FAHP), fuzzy technique for order of preference by similarity to ideal solution (FTOPSIS), simple additive weighting (SAW) and evaluation based on distance from average solution (EDAS) in order to define how various multi-attribute decision-making (MADM) methods compare when used for risk assessment in PPP projects. For this study, 5 risk assessment criteria and 10 types of risk used in Iranian highway PPP projects were selected. Four suitability and applicability tests were used to measure agreement between the rankings derived from the MADM methods. Final results show that all techniques had approximately the same rankings of risk assessment, with the SWARA, COPRAS, and EDAS methods performing slightly better. The findings of this study will help the parties in PPP and construction projects to select the best risk assessment method. Full article