Professional Documents
Culture Documents
Editors: Prof. Akintola Akintoye, Dr. Champika Liyanage and Prof. Jack Goulding
Conference Chair Prof. Akin Akintoye Conference co-ordinators Dr. Champika Liyanage Prof. Jack Goulding Dr. Athena Roumboutsos Organising commitee Prof. Akin Akintoye Dr. Champika Liyanage Prof. Jack Goulding Dr. Athena Roumboutsos Dr. Kaushal Keraminiyage Prof. Mohan Kumaraswamy Dr. Jennifer Doyle Dr. Abdul Ganah Jalal Abrishami Shokooh Patricia Ann Beard Scientific Committee Dr. Abdul Ganah Dr. Adebayo Oladapo Dr. Adrian Bridge Prof. Akin Akintoye Prof. Albert P.C. Chan Dr. Andrew Smith Dr. Ashwin Mahalingam Dr. Bing Li Bjorn Wundsch Dr. Champika Liyanage Prof. Chimay Anumba Dr. Colin Duffield Prof. Darinka Asenova Prof. David Eaton Prof. David Root Prof. Gary Holt Prof. Geert Dewulf Dr. Hans Voordijk Prof. Jack Goulding Dr. John Tookey Prof. Koen Verhoest Dr. Michael Garvin Prof. Mohan Kumaraswamy UCLAN, UK UCLAN, UK Queensland University of Technology UCLAN, UK The Hong Kong Polytechnic University, Hong Kong UCLAN, UK Institute of Technology Madras, India Xiamen University, China Bauhaus-University, Germany UCLAN, UK The Pennsylvania State University, USA The University of Melbourne, Australia Glasgow Caledonian University, UK University of Salford, UK University of Witwatersrand, South Africa UCLAN, UK University of Twente, Netherlands University of Twente, Netherlands UCLAN, UK Auckland University of Technology University of Antwerp, Belgium Virginia Tech, USA University of Hong Kong, Hgong Kong
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UCLAN, UK
UCLAN, UK UCLAN, UK UCLAN, UK University of Aegean, Greece University of Salford, UK University of Hong Kong UCLAN, UK UCLAN, UK UCLAN, UK UCLAN, UK
Dr. Nunzia Carbonara Dr. Ole Helby Petersen Prof. P.D. Rwelamila Dr. Patrick T.I. Lam Prof. Peter Mcdermott Dr. Peter Raisbeck Prof. Rosario Macario Dr. Roshana Takim Dr. Sachie Gunatilake Prof. Satya Kalidindi Prof. Shouqing Wang Prof. Stephen Ogunlana Prof. Steve Rowlinson Dr. Thierry Vanelslander Dr. Veiko Lember Dr. Wafaa Nadim Prof. Walter Scherrer Prof. Wellington Thwala
Politecnico di Bari, Italy AFK Danish Institute of Governmental Research, Denmark University of South Africa, South Africa The Hong Kong Polytechnic University, Hong Kong University of Salford, UK The University of Melbourne, Australia Lisbon Technical University, Portugal Universiti Technologi Mara (UiTM), Malaysia UCLAN, UK Institute of Technology Madras, India Tsinghua University, China Heriot Watt University, UK The University of Hong Kong, Hong Kong University of Antwerp, Belgium Tallinn University of Technology, Estonia British University in Egypt, Egypt University of Salzburg, Austria University of Johannesburg, South Africa
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Forward Public Private Partnerships (PPPs) are now commonly used to accelerate economic growth, improve development and infrastructure delivery, support better integration of services, strengthen governance and quality levels, and also maximise innovation opportunities. Given the changing economic, social and political environment, coupled with globalisation and budgetary constraints, PPP has now become a desirable mainstream option for many countries worldwide. The need for PPP has been exacerbated by the public sectors recognition of the vital role of modern infrastructure in economic growth, the demand for which is evidenced in this conference through a variety of diverse projects and contexts across different countries. This conference is jointly organised by CIB TG72, EU COST ActionTU1001 - Public Private Partnerships in Transport: Trends and Theory (P3T3, UCLan Centre for Sustainable Development (CSD) and The University of Hong Centre for Centre for Infrastructure and Construction Industry Development (CICID). The conference provides a forum for discussing recent work on policy, governance, operational and implementation issues related to PPP. It is particularly significant, in the sense that it brings delegates together from many countries to present papers of international importance in this field. Topics include issues around PPP infrastructure (transport - roads, water, seaports, highways, social, rail, etc.), education, housing and hospital/health sector developments, value for money, knowledge management, risk, modelling, transaction costs, performance management, finance mechanisms etc. This diversity brings together a rich blend of research and practice-based experience, which uncovers new understanding and insight into such important areas as: innovation, process improvement, trust, teamwork, and new collaborative approaches. We are very fortunate to have six eminent keynote speakers from academia, practice, government and industry over the three days of the conference. The first two days are devoted to academic papers presentations, and the third day focuses on industry presentations and workshops. This conference is supported by Emerald Publishing through the Journal of Construction Innovation and Journal of Financial Management of Property and Construction; and best paper awards will be offered in the closing ceremony. In addition, we have had expression of interest from the Journal of Financial Management of Property and Construction to publish a selection of best papers from the conference. The papers contained in these proceedings went through a two-stage formal academic review process. The first stage involved the review of each abstract by the conference Scientific Committee; and the second stage involved the review of each full paper by the Scientific Committee and external specialist reviewers. This process not only helped authors sharpen their papers, but also helped to strengthen academic rigour. Finally, we would like to thank all members of the Organising Committee and Scientific Committee, the external referees, keynote speakers, and all contributory partners and sponsors. Akintola Akintoye On behalf of the Organising Committee: International PPP Conference 2013- Body of Knowledge
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TABLE OF CONTENTS
DECISION MODELS AND FRAMEWORKS
ENTREPRENEURIAL MODELS OF PUBLIC PRIVATE PARTNERSHIPS IN LOCAL DEVELOPMENT
ATHENA ROUMBOUTSOS AND A. TEMELJOTOV-SALAJ ............................................................................................................ 1
ADAPTING GOVERNANCE OF PUBLIC-PRIVATE PARTNERSHIPS TO THE POST-NEW PUBLIC MANAGEMENT FRAMEWORK: CHALLENGES TO BRITISH, CZECH AND SPANISH APPROACHES
PETR WITZ .............................................................................................................................................................. 21
DEVELOPING A DECISION MODEL FOR PPP IMPLEMENTATION TOWARDS A SUSTAINABLE HIGHWAY DEVELOPMENT AND OPERATION IN NIGERIA
ISSAC ABIODUN ........................................................................................................................................................ 31
PPP PERFORMANCE
PUBLIC-PRIVATE PARTNERSHIPS IN THE ITALIAN INTEGRATED WATER SERVICE INDUSTRY: A BENCHMARKING ANALYSIS OF OPERATIONAL EFFICIENCY
CORRADO LO STORTO ................................................................................................................................................. 45
PUBLIC-PRIVATE PARTNERSHIP PROJECTS IMPLEMENTATION: THREE CASE STUDIES OF SEAPORT PROJECTS IN INDIA
FREDY KURNIAWAN, S. OGUNLANA, I. MOTAWA AND M. DADA ............................................................................................ 65
PUBLIC PRIVATE PARTNERSHIPS: ACHIEVING BETTER VALUE-FOR-MONEY OUTCOMES IN THE OPERATIONAL PHASE THROUGH IMPROVED PARTNERSHIP, RISK AND PERFORMANCE MANAGEMENT PRACTICES
STEVEN MCCANN, G. ARANDA-MENA AND P. J. EDWARDS ................................................................................................ 115
PUBLIC-PRIVATE PARTNERSHIP PROJECTS IMPLEMENTATION: THREE CASE STUDIES OF SEAPORT PROJECTS IN INDIA
Fredy Kurniawan1, S. Ogunlana2, I. Motawa2, and M. Dada3
1 2 3
Civil Engineering Faculty, Narotama University, Surabaya, Indonesia School of the Built Environment, Heriot-Watt University, Edinburgh, UK Faculty of Environmental Sciences, University of Lagos, Akoka, Lagos, Nigeria
Public-Private Partnership (PPP) offers many potential advantages for the government in providing infrastructure facilities. However, the implementation of PPP projects has not been easy. This article aims to study the implementation of PPP seaport projects in India. On the basis of cross-case analyses with three units of analysis: 1) Management of PPP project process; 2) financial viability analysis; and 3) value for money analysis. Four patterns are identified from three case projects. The first pattern shows that independent regulators (e.g. the Tariff Authority for Major Ports) played an important role in protecting lenders interest by scrutinising the capital expenditure of port terminals for the purpose of tariff setting. The second is that unrealistic traffic projections result in cancellation of tendering and create tariff setting issues in the subsequent operation phase. The third pattern shows that poor project preparation at the pre-bid stage leads to prolonged negotiations and delays in financial closure. And the fourth pattern shows that three cases have successfully demonstrated the ability to deliver value for money in terms of time efficiency, cost overrun anticipation, traffic performance, attractive interest rates and tenor of debt. On the basis of these findings, the authors offer a number of suggestions to improve the quality and effectiveness of the evaluation procedure for PPP seaport projects.
Keywords: Case Studies, Public-private partnership, Procurement, Project Evaluation Procedure, Stakeholders.
INTRODUCTION
Government has the responsibility for providing public services including infrastructure facilities. Various types of infrastructure constitute essential public services, for instance: transportation, energy, telecommunications, water, waste disposal, hospital, school, and housing facilities. Public-Private Partnership (PPP) offers many potential advantages for the government in providing infrastructure facilities (Askar and Gab-Allah, 2002). Although Cheung and Chan (2009) remarked that PPP is not always the best option to procure infrastructure projects, 12 of 63 developing countries under International Development Association (IDA) reached financial or contractual closure for 24 transportation, energy, and water projects with private investment commitments of US$7.5 billion in 2010 (Perard, 2011). In the context of the transportation sector, Kakimoto and Seneviratne (2000), Bichou and Gray (2005), and Kulkarni and Prusty (2007) have meticulously described the role of port infrastructure as economic catalysts for promoting seaborne trade activity and generating benefits and socioeconomic wealth in developing countries. India, being one of the fastest growing among developing countries, has attractive policies in favour of private participation in infrastructure provision with varying degrees of success. The first guidelines for private sector participation in major ports were announced by the government of India in October 1996. Since then PPPs have been promoted for implementation of infrastructure projects in India (DEA, 2012).
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Recently in 2010, the Department of Economic Affairs Infrastructure under the Ministry of Finance, Government of India has been heavily involved in PPP research. The government of India has an innovative program called PPP capacity building programme, which developed a PPP toolkit to assist decision-making for infrastructure PPPs in India and to improve the quality of on-going PPP projects. The toolkit was developed under a non-lending technical assistance cofinanced by the World Bank, AusAID South Asia Region Infrastructure for Growth Initiative and the Public Private Infrastructure Advisory Facility (PPIAF). The PPP Toolkit was designed with a focus on helping decision-making by Project Officers across India at the Central, State and Municipal levels through four phases comprising: Project identification, Full feasibility, PPP procurement, and PPP contract management and monitoring. Nevertheless, there are constraints being faced by the Government of India in promoting PPP, such as: insufficient instruments to undertake long-term equity and financial liability required by infrastructure projects, much hindrance in enabling a regulatory framework, inability of the private sector to fit into the risk of investing in diversified projects, lack of credibility of bankable infrastructure projects used for financing the private sector, and inadequate support to enable greater acceptance of PPPs by the stakeholders (DEA, 2012). These constrains are influenced by the ability of the main stakeholders in managing the risks involved in PPP projects. Therefore, this paper aims to study the implementation of PPP seaport projects in India with the view of offering suggestions for the improvement of the PPP process especially the evaluation of such projects. The aim of this paper was satisfied by conducting an in-depth analysis of three case projects via published materials such as newspapers, magazine articles, websites, journal papers, government releases, etc. A large range of materials were first collected. Then materials that were believed to show a true reflection of the situation on the three selected projects were retrieved and analysed through cross case analysis. The findings and conclusions from the analysis of the case studies are presented and discussed in the paper.
Figure 1: Indian Major Seaports Capacity and Traffic (In Million Tonnes) Source: Transport Research Wing (TRW, 2010)
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As a consequence of the capacity inadequacy, Indian seaport operations lagged behind foreign counterparts (Ray, 2005).The operational inefficiency of Indian seaports resulted in higher through-put and sea transport costs, which means that cargo shipped from Indian seaports were 45%-50% costlier than the norm, thus becoming non-competitive in the international market (World Bank, 1995). In order to overcome the above problems, coupled with need for provision of cost-efficient service to customers, especially for the public sector ownership of ports that created the usual problems of accountability and inefficiency, the Government of India decided to encourage private sector participation. The first guidelines for private sector participation in major seaports were announced by the Ministry of Surface Transport in October 1996 (MoST, 1996). Since then PPPs have been promoted for implementation of infrastructure projects in India (DEA, 2012). The following sections will discuss the detailed procedure for evaluating PPP seaport projects in India.
Amongst the above 6 components of the PPP toolkit, this research focuses only on two financial related tools namely PPP Financial Viability Indicator Model and VFM Indicator tool. Since the PPP toolkit was first introduced in 2010, the two financial related tools were not available in the three case studies. Nevertheless, the investigation of three PPP projects will aid the understanding of the background of PPP toolkit development and help to propose a number of suggestions for improving the quality and effectiveness of the evaluation procedure for PPP seaport projects.
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Project stakeholders or PPP practitioners can use the PPP toolkit at four phases in the PPP process as illustrated in Figure 2. Phase 1: PPP identification, covering strategic planning, project pre-feasibility analysis, PPP suitability checks, and internal clearance to proceed with PPP development Phase 2: Full feasibility, PPP preparation and project clearance, covering project appraisal including a full feasibility study, PPP preparation including draft documents, and inprinciple clearance Phase 3: PPP procurement, covering procurement, final drafts of bidding documents, final approval and project award Phase 4: PPP contract management and monitoring, covering project implementation and monitoring over the life of the PPP
The main goal of Phase 1 is to identify the projects quality for development and the projects suitability for PPP. At Phase 1, the Sponsoring Authority (e.g. ministry(s) for Central-level projects, sponsoring department(s), Urban Local Body, or other statutory or public sector corporate entity as appropriate to the case) will be responsible for identifying and testing projects. Since the process at Phase 2 requires more resources in the form of people, time and money, projects must pass Phase 1 checks before they can enter Phase 2. The heart of Phase 2 is a full feasibility study. Preparation for the procurement process also begins in this phase, including selection of the best procurement method and first drafts of the bidding documents. The Sponsoring Authority (e.g. ministry(s) (Central-level projects), sponsoring department(s), or statutory or public sector corporate entity, as appropriate to the case) will be responsible for conducting full feasibility study with support from dedicated PPP agencies, such as a PPP Cell or Project Development Agency. The final step in phase 2 is an application for In-principle Clearance by the Appraisal/Clearance Authority. Projects that are granted In-principle Clearance can move to the Procurement Phase (Phase 3). The Sponsoring Authority (e.g. ministry(s) for Central-level projects, sponsoring department(s), Urban Local Body, or other statutory or public sector corporate entities as appropriate to the case) will be responsible for selecting the best qualified private sector partner for the PPP and concluding the concession agreement. At the completion of this phase the project will have completed its development as a PPP and will be ready to enter the contract management and monitoring phase (Phase 4) that continues throughout the life of the PPP.
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Figure 2: The PPP Process and Decision Tools Source: Department of Economic Affairs (DEA, 2012)
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the structural relationships of the most important participants into three major actors triangle in a PPP project (see Figure 3).
Host Government (Local Authority)
Theoretically, three major actors (Authority, Concessionaire, and Lender) are trying to achieve consensus on the combinations of tariff schemes, concession periods, and rate of returns of a PPP project (Ngee et al., 1997; and Liou and Huang, 2008). In the Indian context, there is an additional actor (the independent regulator) that also plays an important role in the process of implementing a PPP project. For a further discussion, the next section will address how the main stakeholders influence the PPP project process management of the selected three cases.
CASE STUDIES
In this section, three PPP seaport projects in India are selected to investigate a contemporary phenomenon of typical procedures used for evaluating PPP projects (Table 1). The reason is that multiple case studies facilitate a deep investigation of a real-life contemporary phenomenon in its natural context by using replication logic (Yin, 2003).
Figure 4: PPP Projects Process Management in India Source: Department of Economic Affairs (DEA, 2012) 70
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Figure 4 shows the PPP project process and initiatives by the Ministry of Finance, which may help to identify the involvement of the most influential actors when evaluating PPP projects. Hence, the evaluation procedure of PPP process will be presented in the form of chronological structure. Figure 5 illustrates important milestones in the three PPP seaport projects in India, which also demonstrates five PPP project stages.
Mar 1999 Contract GoAP - KSPL 12/30/1996 Operation by GoAP Sep 1998 Bidding for OMST/BOT Apr 1999 Operation I 2003 Renegotiation of Concession Agreement Sep 2004 Sept 2004 Financial Close 2007 Constr. Phase II 2008 Operation II
KDWP
Aug 2003 Contract GoAP - GPL Dec 2005 Dec 2005 Financial Close Dec 2005 Construction (I) Aug 2008 Full Operation
GANGAVARAM PORT
Dec 1999 Operation I Oct 1997 Jul 2001 Jul 1997 Jul 2000 Constr. (I) Dec 1998 Jul 2001 Contract Full Operation Financial Close JNPT - NSICT Constr. (II) (I & II)
NSICT
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Legend:
Bidding Start
Contract Signature
Construction Start
Financial Closure
Operation Start
CASE DESCRIPTIONS
These three cases have been selected because they are three of the most important PPP projects in India, and because data for cross case analysis was available.
Table 1: Three selected PPP Seaport Projects in Indian for case study (DEA, 2012) Case Study No. 1 PPP Project Structure BOT (includes Design and Finance) BOOT (includes Design and Finance) OMST/BOT (includes sharing of revenue with Govt) State and Year PPP Contract Signed Maharashtra (1997)
Project
Sector
Concession Period
Ports (Major)
30 years
Ports (Minor)
Ports (Minor)
30 years (extendable by additional 2 periods of 10 years each) 20 years (extendable by 2 periods of 5 years each) Later extended to 30 years (extendable by 2 periods of 10 years each)
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PPP Performance Table 2: The Main Stakeholders in the PPP Seaports Projects in India Stakeholders Case Study No. Project Government / Sponsoring Authority Jawaharlal Nehru Port Trust Independent Regulator Tariff Authority for Major Ports (TAMP) Private Sector Promoter / Sponsor / Consortium Members P&O Australia Ports Pty Limited, Konsortium Perkapalan Berhad and Trans Impex Private Limited (P&O Ports subsequently taken over by Dubai Ports World Limited (DP World)) D.V.S. Raju of VisualSoft Technology (80% of Equity) & Dubai Port Authority, was later replaced by Integrax Berhad (20%), Warburg Pincus and the Andhra Pradesh Infrastructure Investment Company (APIIC)
Lenders
A consortium of lenders led by ICICI Bank, ANZ Investment Bank, HSBC and Standard Chartered
Gangavaram Port
Government of Andhra Pradesh (No VGF has been provided to the project)
A consortium of 13 Banks (State Bank of India, IDBI, Punjab National Bank, State Bank of Hyderabad, State Bank of Patiala and Oriental Bank of Commerce) led by SBI Capital Markets arranged term senior & subordinate loans of Rs. Asian Development Bank
Larsen & Toubro Ltd, India, Stevedoring Services of America, USA, Precious Shipping Company, Thailand, Konsortium Perkaplan Berhard, Malaysia
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Management and Konsortium Perkapalan Berhad. The royalty was based on Twenty-feet Equivalent Unit (TEU) handled traffic, which ranged from about 2% in the initial years to about 50% of the Minimum Guaranteed Royalty payment in the terminal year. The concession agreement between JNPT and the Special Purpose Vehicle (SPV) Company led by P&O Ports (now Dubai Ports) was finalised and signed in January 1997.
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of Major Ports (TAMP) allowed royalty to be considered as a cost in the tariff computation for bids received prior to July 29, 2003. This revision resulted in a reduction in NSICTs tariff by 12%. However, it still imposed excess burden on port users. Therefore, in 2005, TAMP recognised the principle that royalty would be paid out of the Operating Surplus (i.e. Profit) of the concessionaire in the latest revised guidelines.
Gangavaram Port
The VfM analysis for this project is limited due to the absence of the financial model by the private port operator, since this is not in the public domain. Therefore, a post facto VfM analysis is presented in the comparison form between what was planned in the feasibility study and what has been achieved by the private operator based on publicly available information. Table 3 shows the summary of post facto VfM analysis of the Gangavaram Port project. In general, the Gangavaram Port project has demonstrated value for money. Although the actual project cost was higher than the estimated cost, the actual unit cost of each berth (Rs.340 Cr/berth) is much cheaper than the estimation (Rs.382 Cr/berth). In other words, the capital expenditure efficiency achieved in project cost is 11%. Another contributing factor to the
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efficiency in capital expenditure was the ability of the concessioner company to negotiate better financing terms with the lenders. Since interest rates are a function of prevailing market conditions, a lower interest rate (9% as compared to 15.5%) and longer tenor of debt (from 10 years to 14 years) would have been a fortuitous timing in the investment cycle that could have contributed to this efficiency.
Table 3: Post facto VFM analysis of Gangavaram Port project (DEA, 2012) Variable Project Cost Berths Maximum vessel size Cargo in Year 1 Interest Rate Tenure Efficiency in Project Cost [% Savings in Average Capex per Berth Achieved] Feasibility Study Rs. 1528 Cr 4 120,000 DWT 10 MTPA 15.50% 10 years Actual Achieved Rs. 1700 Cr 5 200,000 DWT 8 MTPA 9% 14 years 11%
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DISCUSSION
Leveraging the roles of the main stakeholders in managing risk
Initially the host government starts identifying a project that needs private sector participation. This process requires pre-feasibility analysis including demand assessment, environmental assessment, cost estimates, risk management mechanism and financial structuring of the project. Without a comprehensive project preparation, the procurement process will be longer than the expected or may even be rejected as demonstrated in NSICT and Gangavaram Port cases. Once the project is ready for the bidding process, private companies are invited to participate in the tender. Given that one of the shortlisted bidders of KDWP case had to withdraw their proposal due to error, it is of paramount importance that the proposal is double checked before being submitted. Then, the prospective bidder is selected. However, it is also important to be realistic in accepting the bidders proposal. The KDWP case proved that higher MGA was not a good parameter in evaluating bidders proposals. Consequently, the GoAP had to withdraw the MGA clause in favour of KSPL. After signing the concession agreement, lenders are invited to participate in funding the project. On the condition that lenders are satisfied, financial closure can be achieved. Otherwise, delay in reaching financial closure is likely to happen as shown in all the three cases. Finally the construction and operation of the project can be started. In the operation stage, the independent regulator plays an important role in balancing stakeholders interests. TAMP has the authority to scrutinise the capital expenditure of the three cases and allow or disallow certain expenditure to be included under the heading of allowable expenditure for the purpose of tariff setting. Therefore, these processes need extensive evaluation procedures that should be followed by all participants.
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of excessive revenue, the GoAP had to withdraw MGA clause in favour of KSPL, and the GoAP had to reject speculative offers that were unsustainable. We suggest giving attention to the projection of traffic volume and avoidance of unduly optimistic traffic forecasts.
Independent regulator
Since a PPP project has a long concession period, an independent regulator is needed to balance the interests between public and private that are represented by licensor and concessionaire. This is necessary because the licensors sometimes have an authority to manage their own port facilities (e.g. Post Trust). In this case, TAMP is an independent regulator for controlling the tariff issued by private ports and port trusts in India. In order to do their job, TAMP scrutinises the capital expenditure of the port terminals and allows or disallows certain expenditure to be included under the heading of allowable expenditure for the purpose of tariff setting. Moreover, TAMP also monitors the projects financial performance and ensures that audited results reflect the true performance of the port rather than under-reporting of profits. Such an authority is a must for good practice.
CONCLUSIONS
The advent of PPP as an alternative procurement strategy offers opportunities and challenges to public and private sectors. Some common problems such as time and cost overruns, low productivity, and operational inefficiency, have been experienced by public sector asset managers. Meanwhile, in the same domain, the private sector has demonstrated higher productivity and
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efficiency for the sake of profit maximization. Private participation in public projects should be comprehensively evaluated in order to achieve successful PPP projects. The study shows that there have been major drawbacks in the evaluation and implementation process of PPP projects as influenced by some important actors in India. With the use of cross case study for in-depth investigation, some patterns have emerged from the study that forms the basis for suggestions for improving PPP implementation. First, the independent regulator played an important role in protecting lenders interest by scrutinising t he capital expenditure of port terminals for the purpose of tariff setting. Such an authority is necessary for regulating PPP projects. Second, unrealistic traffic projections resulted in cancellation of tendering and tariff setting issues in the operation phase. We suggest that PPP stakeholders insist on realistic forecasts as a means of preventing projects from ending in failures. Third, concessionaires could not achieve the required financial closure within 180 days (plus a grace period of 120 days) from the date of the agreement due to poor project preparation at the pre-bid stage. We therefore suggest that PPP stakeholders devote sufficient time to pre-project planning as a means of ensuring success in early project closure. And the fourth commonality shows that three cases have successfully demonstrated the ability to deliver value for money in terms of time efficiency, cost overrun anticipation, traffic performance, attractive interest rates and tenor of debt. These lessons can be learned by other developing economies. The study also shows that Indian government has successfully developed a PPP toolkit based on the experience from previous PPP projects.
REFERENCES
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Ngee, L., Tiong, R. L. K. and Alum, J. (1997) "Automated Approach to Negotiation of BOT Contracts". Journal of Computing in Civil Engineering, Vol. 11, No. 2, pp. 121-128. Perard, E. (2011) "High Level of Private Activity in Energy, Transport, and Water in IDA Countries", Available from: https://openknowledge.worldbank.org/handle/10986/10904. (Accessed 11 October 2012). Ray, A. S. (2005) "Managing Port Reforms In India: Case Study of Jawaharlal Nehru Port Trust (JNPT) Mumbai", Available from: http://siteresources.worldbank.org/INTWDR2005/Resources/4774071096581040435/wdr2005_india_port_reform2.pdf. (Accessed 14 October 2012). TRW (2010) "Basic Port Statistics of India 2008 - 2009", Transport Research Wing (TRW), New Delhi. World Bank (1995) "India - Port Sector Strategy Report", Available from: http://documents.worldbank.org/curated/en/1995/03/697551/india-port-sector-strategyreport. (Accessed 14 October 2012). Yin, R. K. (2003) Case Study Research: Design and Methods, London, Sage Publications.
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