• International conference on construction engineering and project management
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• 2013.01a
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• pp.344-351
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• 2013

Private participation on public infrastructures projects is being promoted by governments of several developing countries, among them Colombia. As a result, several advantages such as service delivery efficiency, technology application and faster execution of the projects have been recognized. Hence, the Colombian Government is looking for schemes that allow the private investment in projects like hospitals, schools, prisons and public edification. In this paper, experiences in PPP from other countries were analyzed and adjusted to the Colombian environment. As a result, a model adapted to Colombia is presented, based on a well-developed case from Spain. The awarding process is defined by economic criteria, previous compliance of minimum technical exigencies. Once the infrastructure is operating, contractual periodical payments will be done, based on the performance of the facility.

• International conference on construction engineering and project management
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• 2017.10a
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• pp.153-158
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• 2017

Procurement system of public construction projects in Japan is changing with diversity in rapid pace. The quality assurance and risk management of construction projects should be more certain as the projects are turning into larger scale and more complexed. The clients in the public sector will want to make the relation of responsibility among the client, the designer (architects and engineers), and contractor clearer in terms of role and risk. Public-Private Partnership (PPP) is one of the methods for collaboration of the public sector and the private sector in public construction projects where the public utilizes the ability and suggestion of the private. Private Finance Initiative (PFI), Design-Build-Operate (DBO), market testing, designated manager system, outsourcing of tasks in local governments are well-known as examples of PPP in Japan. Indeed, there is an obvious trend that Design-Build (DB) is adopted in public construction projects in many countries including Japan. In this paper, the public construction projects in various procurement systems are surveyed and analyzed. They are not limited within the traditional procurement, Design-bid-Build, a separate order system of design and construction. Design-Build or PFI are adopted. In particular, contract by wide range including maintenance of equipment can be found. On the other hand, modification from originally typical PFI is taking place, such as concept design and project finance are removed from the roles and the tasks of the special purpose company (SPC) in PFI. Standard roles and tasks in a construction project are modeled in this paper.

• International conference on construction engineering and project management
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• 2017.10a
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• pp.235-241
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• 2017

SWOT-AHP method was utilized in the research for the Korean construction companies to advance into the US PPP market. The research was that the SO Strategy ": Advancing through strategic selection of both construction sector type and region", ST Strategy "Advancing based on the acquired competitive business sector", WO Strategy "Developing collaboration model between public financial organization and construction company", and WT Strategy "Establihing a partnership or M&A with local companies".

• International conference on construction engineering and project management
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• 2011.02a
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• pp.124-131
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• 2011

Public infrastructure is crucial to promote and sustain a sustainable economic growth and a health community. A large amount of capital investment is generally required in infrastructure projects that motivate the involvement of the private sector in the delivery process. Various relationship-based procurement methods have been attempted to maximize value-for-money. In this paper, the problems and challenges that relationship-based procurement methods have been facing are explored. A particular focus is placed on the challenges for the public-private partnership (PPP) model. Possible strategies for adapting the PPP models in the post-Global Financial Crisis era are proposed and discussed. In addition, the challenges facing alliancing, which is one of the other important relationship-based procurement methods, are also examined. Views on infrastructure procurement in the future were sought from industry professionals via interviews and are reported in this paper as well.

• International conference on construction engineering and project management
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• 2011.02a
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• pp.132-141
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• 2011

Australia has joined many governments to adopt public-private partnership (PPP) as a major strategy for procuring infrastructure for decades. However, failures have occurred although the market has been considered to be a mature and sophisticated one. Failures have typically been traced back to inappropriate economic evaluation and a lack of value-for-money. In particular, a literature review has identified that there was no holistic consideration on the evaluation of procurement transactions of PPP projects. The transaction costs of PPPs were not handled properly. In this paper, theories of transaction cost economics are proposed for the purpose of such a holistic institutional economic evaluation. These theories are analysed in order to identify potential critical success factors for a strategic infrastructure procurement framework. The potential critical success factors are identified and grouped into a number of categories that match the theories of transaction cost economics. These categories include (1) Asset Specificity, (2) Organizational Capability, (3) Transaction Frequency, (4) Behavioural Uncertainty, and (5) Environmental Uncertainty. These potential critical success factors may be subject to an empirical test in the future. The proposed framework will offer decision makers with an insight into project life cycle economic outcomes needed to successfully deliver PPPs.

• International conference on construction engineering and project management
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• 2015.10a
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• pp.30-31
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• 2015

PPPs in international development cooperation can be challenging due limited capacities in the country, weaknesses in terms of policy and legislative frameworks, differences in mindsets, values, work ethics and hierarchical structures as well as cultural issues. These can lead to misunderstandings and implementation problems. However, a careful assessment of the situation on the ground, stakeholder analysis and needs assessment can help to identify potential bottlenecks and address capacity constraints that could slowdown operations. A sound understanding of local power dynamics and work practices can help to put in place an exit strategy which will enhance the projects' sustainability. Making sure that goals and objectives are understood in the same way by all partners, establishing an ongoing and respectful dialogue between them, as well as transparent implementation and monitoring mechanisms can also contribute to the PPP's success and increase the likeliness to make a difference in the lives of those in needs.

• International conference on construction engineering and project management
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• 2022.06a
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• pp.33-41
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• 2022

Infrastructure procurement has been a major engagement route between China and Africa. This contributes immensely to the gradual infrastructure development seen on the continent. However, maturing discourse purports that these infrastructure collaborations lack intentionality in the continuous development of strategic guidelines and policies for effective implementation despite their uniqueness and criticality. This study proposes that an efficient approach to policy recommendations is through the political and economic analysis (PEA) of these partnerships using public-private partnership (PPP) optics. Unquestionably, these partnerships are representative of the concept of diplomatic transnational public-private partnership (DT-PPP) where infrastructure is procured through the collaboration of public (African governments) and private sector (Chinese state-owned corporations) who provide the managerial, financial, and technical resources for the project implementation. Given the quest for sustainable win-win, this study identifies strategies towards the realization of win-win in the implementation (i.e enablers of win-win) such that fairness and co-benefit, as well as interests, will be achieved. Thus, based on the PEA framework, case scenarios from Ghana and Nigeria using expert interviews identify the criticalities and best practices for the realization of these enablers at the development phase. Findings indicate more effort is required of the public sector (African host countries) in terms of people, structure/institutions, and the implementation processes. Recommendations include improvement of environmental management structures, contract administration procedures, external stakeholders/local community engagement mechanisms, knowledge and technology transfer procedures, and sector-based project operation and maintenance culture and systems. Additionally, actors must have emotional intelligence, good problem-solving abilities, and overall ensure cordial relationships for continued bilateral cooperation.

• KSCE Journal of Civil and Environmental Engineering Research
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• v.37 no.2
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• pp.427-435
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• 2017

Korea's overseas construction awards reached US $750 bn for more than 50 years since it first entered the market in 1966. In particular, the company won US $540 bn over 10 years from 2007, achieving 72% of the total contracts. However, in recent two years, awarded amounts have decreased by 40% each year. The most significant decline is due to the impact of international oil prices, which have plummeted since end of 2014, as oil-producing nations, which are Korea's major target countries, are struggling to cancel or postpone infrastructure orders. In order to lessen the impact of raw material price fluctuations, the recent trend is that even countries with relatively loose government financing conditions are rapidly changing their ordering methods to investment development forms such as PPP. The Korean government and companies have been already preparing for this for several years, but they are still not doing so well. The main reason is the lack of understanding about the investment development type project, especially financing methods and the aggravated fear of exposing it to various risks due to the characteristics of the development project, which takes a long time to collect the investment. In this paper, I propose a more systematic solution to financial process and risk management, which is recognized as a obstructive factor for Korean companies, in line with the recent government-led establishment of overseas infrastructure development support organizations. I would like to serve as a investment guide.

• Korean Journal of Construction Engineering and Management
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• v.19 no.3
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• pp.97-104
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• 2018

This paper aims to evaluate the performance of S University's Premier Global Construction Engineer Training Program. The net impact of the program is evaluated through a quasi-experiment design approach. The competency level of an individual participant is compared with that of a non-participating expert with similar professional background. The results show that the training program contributed to a significant improvement in the professional competencies of the participating students. The competency level was regressed on the subjects of curriculum. The achievements are attributable to a group of subjects focused on the skills for project development such as PPP, feasibility study, and project financing. Another group of subjects found to have significantly contributed to the improved competencies can be categorized as subjects focused on nurturing global perspectives. The paper shows it is possible to quantify the contribution of the program and the results provide a set of information that can be useful in designing and operating similar programs.

• KSCE Journal of Civil and Environmental Engineering Research
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• v.32 no.5D
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• pp.493-498
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• 2012

Korean construction companies have maintained stable market share based on high technology and cost competitiveness although international construction market has been stalled due to increasing global economy uncertainties. However, Korean construction companies have relied heavily on the general types of projects in Middle East and Asia although the portion of different types of projects such as Build-Transfer-Operate (BTO), Build-Transfer-Lease (BTL), and Public-Private-Partnership (PPP) has been increasing in the market. When delivering huge projects requiring contractors deal with activities from project planning to operation, securing finance sources and profitability is deemed critical. Therefore, Korean construction companies need more attentions on the construction market supported by Multilateral Development Banks. However, Korean construction companies have not utilized effective strategies for the market entry and also government supportive policies are not useful enough to help construction companies. This study aims both to analyze the contract structure of Korean construction companies for presenting critical factors that need to be prepared and to suggest various methods that can be applied to support construction companies that have much interest in the Multilateral Development Banks. According to the results of study, it is important that Korean government provide structural information system, make a specialized organization, prevent over-heating among Korean construction companies, and collaborate with Official Development Agency. In addition, it appeared that the fairness and financial stability of project have recognized main advantages of the Multilateral Development Banks.