Kurniawan, F; Ogunlana, S and Motawa, I (2014) Stakeholders' expectations in utilising financial models for public-private partnership projects. Built Environment Project and Asset Management, 4(1), pp. 4-21. ISSN 2044-124X
Abstract
Purpose: The purpose of this paper is to explore stakeholders' expectations in utilising PPP financial models in order to ensure that each stakeholder understands the expectations of others before negotiating and reaching contract agreement by all the stakeholders. Design/methodology/approach: Five common sets of 40 expectations have been identified through a systematic research approach, and their relative significances were verified based on pilot studies in India and the UK and expert opinion solicited worldwide through a structured questionnaire survey. The survey responses were evaluated by using statistical analyses. Findings: The most important stakeholders' expectations in utilising PPP financial models were identified at five different stages in a project. They are bankable (at the pre-proposal stage), assessment of project's ability to carry senior debt (at the contract negotiation stage), sensitivity analysis for key commercial issues (at the finance-raising stage), debt service evaluation towards cost overrun and other adverse events (at the construction stage), and assurance of secure operational cash flow (at the operation stage). Although some of the most important expectations are agreed on by all stakeholders, the disagreement of most important expectations should also be considered by the other stakeholder(s) in order to achieve effective and efficient negotiations. Originality/value: The paper draws attention to stakeholders' expectations in utilising a financial model that is arguably overlooked in evaluating PPP projects. It does so in order to speed up the negotiation process as a means of minimising cost and time expenditures on PPP contract negotiation.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | decision making; financial model; negotiation; public-private partnership; stakeholders |
| Index terms: | cash flow, proposal, sensitivity analysis, partnership, cost overrun, contract negotiation, statistical analysis, survey, decision-making, methodology, questionnaire, negotiating, India, negotiation |
| Subjects: | data collection methods, data science, project planning, financial and cost management, financial management, research methods, Geography, contract management, partnership management, conflict resolution, decision analysis, environmental hazards |
| Topics: | Research Practice, Project Management, Geographical Context, Cost Management, Sustainability, Risk Management, Stakeholder Management, Contract Administration |
| Descriptive scope: | 5 PCTEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here