Tharun Dolla and Boeing Singh Laishram
The Low carbon (LC) agenda has captured interest across governments and research communities. But such focus is not addressed so far in the operation of municipal solid waste…
Abstract
Purpose
The Low carbon (LC) agenda has captured interest across governments and research communities. But such focus is not addressed so far in the operation of municipal solid waste (MSW) infrastructure in India. The purpose of this paper is to draw focus on the promotion of low carbon infrastructure by improving the procurement process of the public–private partnership (PPP) approach.
Design/methodology/approach
The current study employed a case study methodology. This paper develops and validates a “five-fold framework,” comprising of selection, financial, operational, standards and targets measures, for integrating LC principles in the procurement of infrastructure projects.
Findings
The public sector fails to understand the importance of the need to incorporate climate change mitigation strategies due to poor procurement competencies. With respect to the operationalization of the framework, funding of viability gap in operations instead of construction, allowing renegotiation clauses to cater possible future LC technological improvements and incorporating emission reduction targets at the local and national levels were highlighted.
Research limitations/implications
LC principles presented in this paper are not exhaustive and are verified using a single Indian PPP case. Future research endeavor can focus on the relevancy and operationalization of these principles using a more elaborate set of indicators and extend the study to other sectors and countries.
Originality/value
This paper seeks to act as guidelines for governments on how to create and improve LC MSW PPP infrastructure projects to facilitate simultaneous achievement of both climate change mitigation and infrastructure delivery goals. The current study could add value to the current emphasis on LC transitions by policymakers, government agencies and regulators.
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Nilesh Agarchand Patil and Boeing Singh Laishram
Though public-private partnership (PPP) programme in India has stabilized significantly with implementation of successful infrastructure projects, still it suffers from shortfalls…
Abstract
Purpose
Though public-private partnership (PPP) programme in India has stabilized significantly with implementation of successful infrastructure projects, still it suffers from shortfalls related to some aspects of sustainable development. One of the ways to overcome these shortfalls is to modify the existing PPP procurement process in order to attain the sustainable development goals. The purpose of this paper is to develop a conceptual framework highlighting the strategies for integrating sustainable development principles in PPP procurement process.
Design/methodology/approach
Content analysis through literature review has been adopted to identify the shortfalls in PPP process and examine the possible strategies to overcome the shortfalls from best practices in implementation of PPP projects. The preliminary framework of strategies has been conceptualized to integrate sustainable development principles in PPP procurement process. Finally, the feasibility of preliminary framework has been undertaken through focussed interviews with local stakeholders of PPPs.
Findings
The study indicates opportunities to promote sustainable development in the current PPP procurement process exists through enhancement in critical aspects like stakeholder’s participation, environment impact assessment, value for money analysis, user’s charges, risk allocation policies, transaction and bidding cost, and bid evaluation criteria.
Originality/value
The paper presents a critical insight on integrating sustainable development principles in PPP procurement process which has not been the focus in the majority of previous research studies.
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Laishram Boeing Singh and Satyanarayana N. Kalidindi
Public private partnerships (PPP) projects are characterised by highly leveraged capital structure. Lenders who provide the major portion of financing in the form of debt are more…
Abstract
Purpose
Public private partnerships (PPP) projects are characterised by highly leveraged capital structure. Lenders who provide the major portion of financing in the form of debt are more concerned with the downside risks and the measures to mitigate the risks. Lenders, thus, look into the risk factors and mitigating measures that could influence the projects debt servicing capability while making the credit decisions. The purpose of this paper is to identify the various aspects of PPP road projects that lenders look into while making the decisions to extend project finance loans to PPP road projects.
Design/methodology/approach
Case study research with four Indian lending institutions provides primary evidences from the interviews on the aspects considered during credit decision making. The primary evidences are collaborated with secondary evidences such as loan proposal and information memoranda of the PPP road projects undertaken by the case study organisations.
Findings
The study identifies the various aspects of PPP road projects, categorised into six major dimensions. The aspects and dimensions provide a theoretical framework to measure the risk profile of PPP road projects from debt‐financing perspective.
Research limitations/implications
Additional cases can be undertaken to validate the findings and increase the usefulness of the framework to practitioners and enhance their general application.
Practical implications
The framework can be useful while making debt financing decisions in assessing how desirable the project is from a debt‐financing perspective.
Originality/value
The work is novel providing insights into debt financing of PPP road projects in India and will be of interest to sponsors while structuring the financial package.
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Abhay Tawalare and Boeing Laishram
The Indian public sector construction industry is normally driven by traditional contracting practices. Though no formal partnering agreement is being used in public sector…
Abstract
Purpose
The Indian public sector construction industry is normally driven by traditional contracting practices. Though no formal partnering agreement is being used in public sector projects in India, improvement in Indian public sector organizations could be observed in the post-liberalization era, as they get the opportunities to work with multinational companies from countries with experiences in partnering. The purpose of this study is to explore the extent of partnering strategies being adopted by Indian public sector organizations and identify factors hindering the adoption of formal partnering.
Design/methodology/approach
Critical success factors for successful partnering were first identified through literature review. This guided the collection of primary data through semi-structured interviews with 36 top management personnel and secondary data in the form of organizational documents and site reports from several site visits of four public sector construction organizations. The evidence collected from four cases were arranged and compared against organizational strategies of successful partnering.
Findings
Most of the strategies adopted by the organizations were found to be in line with the suggested partnering practices. However, partnering performance of these organizations was found to be not satisfactory. This study has identified 14 factors hindering effective partnering such as reservations over joint risk-sharing process, limited bid evaluation criteria, difficulty in time-bound payment to contractor, absence of incentive mechanism, obsolete training procedures and absence of time-bound dispute resolution mechanism.
Research limitations/implications
The research findings are based on a case study with four public sector organizations only. Additional cases need to be undertaken to generalize the findings. Further study should also be undertaken to explore partnering relationships between contractors and subcontractors in public sector projects.
Practical implications
To improve project performance, top management of public sector organizations in India can take these factors into account while formulating strategies on introduction of project partnering in their organizations.
Originality/value
The work is novel providing insights into organizational strategies promoting and hindering partnering in Indian public sector construction organizations.
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Nilesh Agarchand Patil, Nicola Thounaojam and Boeing Laishram
Increasingly adopted by various governments for infrastructure development, public-private partnerships (PPPs) have become a popular procurement delivery system, outperforming…
Abstract
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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Kofi Agyekum, Chris Goodier and James Anthony Oppon
The majority of the literature on green buildings in Ghana focuses on environmental benefits, innovative designs, construction technologies and project management techniques…
Abstract
Purpose
The majority of the literature on green buildings in Ghana focuses on environmental benefits, innovative designs, construction technologies and project management techniques. However, little is known about how such facilities are financed. This issue creates potential knowledge gaps, one of which this study aims to address. This study examines the key drivers for green building project financing in Ghana.
Design/methodology/approach
The study uses an explanatory sequential design with an initial quantitative instrument phase, followed by a qualitative data collection phase. An extensive critical comparative review of the literature resulted in the identification of eight potential drivers. One hundred and twenty-seven questionnaire responses based upon these drivers from the Ghanaian construction industry were received. Data were coded with SPSS v22, analysed descriptively (mean, standard deviation and standard error) and via inferential analysis (One Way ANOVA and One-Sample t-Test). These data were then validated through semi-structured interviews with ten industry professionals within the Ghana Green Building Council. Data obtained from the semi-structured validation interviews were analysed through the side-by-side comparison of the qualitative data with the quantitative data.
Findings
Though all eight drivers are important, the five key drivers for the Ghanian construction industry were identified as, in order of importance, “high return on investment”, “emerging business opportunity”, “ethical investment”, “conservation of resources” and “mandatory regulations, standards, and policies”. The interviewees agreed to and confirmed the importance of these identified drivers for green building project financing from validating the survey's key findings.
Research limitations/implications
Key limitations of this study are the restrictions regarding the geographical location of the collected data (i.e. Kumasi and Accra); timing of the study and sample size (i.e. the COVID-19 pandemic making it difficult to obtain adequate data).
Practical implications
Though this study was conducted in Ghana, its implications could be useful to researchers, policymakers, stakeholders and practitioners in wider sub-Saharan Africa. For instance, financial institutions can invest in green buildings to expand their green construction and mortgage finance products to build higher value and lower risk portfolios. The findings from this study can provide investors with the enhanced certainty needed to help guide and inform their investment decisions, i.e. what to invest in, and when, by how much and how a scheme being “green” may influence their rate of return. Also, for building developers, it will give them a clearer understanding of the business case for green buildings and how to differentiate themselves in the market to grow their businesses.
Originality/value
This study's findings provide insights into an under-investigated topic in Ghana and offer new and additional information and insights to the current state-of-the-art on the factors that drive green building project financing.