Atmo, G and Duffield, C (2014) Improving investment sustainability for PPP power projects in emerging economies: Value for money framework. Built Environment Project and Asset Management, 4(4), pp. 335-351. ISSN 2044-124X
Abstract
Purpose: Many electricity projects in Asian emerging economies involve private finance using Public Private Partnerships (PPPs) yet problems remain in terms of project initiation, commercial structuring, and financial arrangements. The motivation to pursue previous PPP power projects has been unduly influenced by the ability to attract finance rather than an independent assessment of value for money (VfM) of the project. The purpose of this paper is to present the development of VfM framework for improving investment sustainability of PPP power projects in Asian emerging economies.; Design/methodology/approach: The drivers for achieving VfM in projects involving both public and private participants have been determined by a critical review of international practices and the development of sustainable energy systems using grounded theory. These drivers have been used to cross-analyse six Asian PPP power projects.; Findings: The evaluation of the case study projects identifies the key determining linkages between the project structure, financial and commercial arrangements, and technical solutions with the ultimate project outcomes. It has been established that project outcomes can be improved through the inclusion of VfM considerations, energy security, and environmental sustainability. On the basis of this investigation, a conceptual governmental decision framework for future investment in PPP power projects is proposed.; Originality/value: Advocating a VfM framework for assessment of PPP power project proposals in Asian emerging economies is a new approach and offers enhanced benefits both to the public and private sector.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | energy management; environmental management; planning; power; PPP; private finance; procurement; project management; projects |
| Index terms: | proposal, case study, decision framework, private sector, grounded theory, linkage, emerging economy, project outcome, private finance, motivation, methodology, investigation, sustainable energy, international practice, energy management, value-for-money, environmental management, public private partnership, project management, environmental sustainability |
| Subjects: | decision analysis, industry analysis, theoretical framing, economic development, sustainability assessment, research methods, health safety and environment, evaluation, project management theory and practice, psychology, sustainability and energy, renewable energy, contractual arrangements, project planning, data collection methods, strategic management, business, project completion |
| Topics: | Value Management, International Construction, Human Resources, Project Management, Research Practice, Health and Safety, Business Strategy, Sustainability, Procurement, Risk Management |
| Descriptive scope: | 5 PCTEA |
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