PRIVATE RISK IN PUBLIC INFRASTRUCTURE – A REVIEW OF THE LITERATURE
DR. ASHWIN MAHALINGAM, DR. JULIE KIM
The volume of private investment in infrastructure has been increasing rapidly throughout the world over the last few decades. In India, infrastructure is set to grow at a very rapid rate. Also, several infrastructure-related sectors in India are being opened up to private participation – from both local and international players. These developments are certain to have an impact on the Indian construction industry, which has a very important role to play in constructing and managing India’s infrastructure. In this new wave of private infrastructure projects in India, players from the Indian construction industry will reprise a variety of roles from being EPC contractors or joint venture partners to being project sponsors. However, a survey of private infrastructure projects around the world indicates that such projects have had a history of subjecting participants to major risks and in some cases, to cancellations of the projects. In this paper we profile the vast amount of literature on private
investment in infrastructure and the risks therein. We identify four major categories of risks that private infrastructure projects face – social/environmental risk, host country risk, economic/financial risk and technological risk. Traditionally private investors have adopted a model known as the Global Projects Legal Paradigm in order to systematically guard against these risks. However this paradigm has not been successful in consistently mitigating project risks. The search must continue for a more robust paradigm. Our objective in this paper is to expose and sensitize researchers and practitioners – particularly those currently focused on the Indian Construction Industry as it plans to
embrace new growth in private infrastructure development - regarding the risks prevalent in private participation in infrastructure. We also summarize the extant knowledge on private infrastructure projects and risk mitigation techniques and lay the groundwork for future research in the area of private infrastructure.
private investment in infrastructure, impact on
the Indian construction industry, EPC contractors or joint venture
partners to being project sponsors
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Research Articles
IMPROVING THE STATE OF MUMBAI’S ROADS: REFORM AGENDA AND STRATEGIC FRAMEWORK
RAMAKRISHNA NALLATHIGA
Mumbai is a rapidly growing city with huge economic growth potential and
is vying to emerge as a world class city. However, unlike other world class
cities, it does not have good physical infrastructure to support the economic
growth and to improve the quality of life. Roads are an important constituent
of city infrastructure which need to be of very good standards to be called
as a world class city. Therefore, there is a definite need for improving the
way roads are laid down and maintained in Mumbai city. This requires
understanding the current scenario of roads and management, causes of
shortcomings and charting a reform agenda for improvement, which are
presented in this paper. Further, a strategic framework is needed to operationlise
the reform agenda, which has been laid down by the Core Group of Bombay
First after extensive deliberations. The paper also discusses this model and
concludes with some positive comments on recent developments.
CONSTRAINTS IN HOUSING DEVELOPMENT AND IMPLEMENTATION : LESSONS FROM NIGERIA
JIMOH R. A.
KEHINDE, J. O
MOSAKU, T. O.
ROTIMI, J.O.B
Development and implementation of housing programme is not something
that can be achieved without careful policy decisions and planning. Usually
there are numerous hindrances to the development and implementation of
housing policies formulated by successive governments in the past. This paper
examines the constraints in the development and implementation of housing
based on the study of the factors that influence the extent of the implementation
of the 1991 National Housing Policy. The discussion is a follow-up on an
earlier paper on the same issue by Kehinde et al, (2003), some basic constraints
of housing development are identified to include among others: access to
adequate finance and its management, lack of technical personnel and
non-utilization of appropriate technology that employ cheap and locally
available materials. The findings show that the local government councils
had done little by way of implementation of the housing policy hence the low
level of infrastructure in the rural communities. The paper suggests a holistic
approach to housing policy formulation that should involve the participation/
contributions of all stakeholders to ensure its implementation
Constraints, Housing policy, Implementation, Housing development, low income
group, Nigeria.
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Research Articles
OPERATING CHARACTERISTIC CURVES : AN APPLICATION IN ONLINE QUALITY MONITORING OF READY MIXED CONCRETE
DEBASIS SARKAR
DR. MANISH THAKER
The operating characteristic (OC) curves measure the performance of a sampling plan. This can be used to find out the producer’s risk and consumer’s risk. In context with commercial ready mixed concrete plants, the producer’s risk is associated with the risk of a good quality concrete being rejected by the client and the consumer’s risk is associated with the risk of accepting a poor quality concrete. Online quality monitoring deals with the monitoring techniques applied during the production of the ready mixed concrete in the RMC plants. 28 days cube compressive strength data of concrete grades have been collected from RMC plants in and around Ahmedabad and attempts have been made
to investigate the producer’s risk and consumer’s risk which would enable RMC producers and consumers to assure quality levels. Quality monitoring of ready mixed concrete (RMC) has to be carried out throughout its production process. There are various techniques for online
monitoring of the concrete , namely (i)Control charts- Cusum Control charts, Schewart Control charts, EWMA Control charts (ii)Acceptance Sampling (iii)British Ready Mixed Concrete Association (BRMCA) concrete control system. However if the RMC producers in our country adopts any of the above monitoring techniques it would enable them to produce and sell a quality product at reasonable prices. The operating characteristic curves which measures the performance of a sampling plan can be utilized for finding out the producer’s risk.
Operating characteristic (OC) curves, producer’s risk and consumer’s risk, RMC plants, techniques for online
monitoring of the concrete, Control charts-EWMA, BRMCA
Research & Publications Department 