Jingfeng Yuan

Performance Objectives Selection Model in Public-Private Partnership Projects Based on the Perspective of Stakeholders

Over the years, public-private partnership (PPP) has been acknowledged by many as an innovative approach to the procurement of public projects. The desire for more efficient and effective PPP projects renders the performance management to be increasingly important, in which the influence of the stakeholders must be considered. To implement complete and effective performance management in PPP projects, 15 performance objective attributes are proposed based on the perspectives of different stakeholders. A structured questionnaire survey was conducted to investigate the relative significance of each attribute in four stakeholder groups. According to the survey results, the objective attributes are all important. Integrating all stakeholders’ benefits and selecting the appropriate qualitative level of performance objective in the process of decision making are two particularly important problems because of stakeholders’ different preferences. To resolve these problems, a fuzzy entropy method and a fuzzy TOPSI...

Developing Key Performance Indicators for Public-Private Partnership Projects: Questionnaire Survey and Analysis

AbstractPublic-private partnerships (PPPs) are increasing in popularity. Major challenges in the development of PPPs have resulted from the global financial crisis. However, with respect to their monetary value, PPPs are still an attractive option for public sector projects. Performance management and measurement, in which Key Performance Indicators (KPIs) are the core elements, viewed as effective methods to help PPPs deliver value for money. This article describes in greater detail a KPI conceptual model composed of 5 performance packages and 48 indicators developed by the authors in previous studies. A structured questionnaire survey explored PPP stakeholders perceptions of 48 project performance indicators (PIs) to identify actual KPIs for performance management and measurement in PPPs. Although the survey results show that all PIs are important, performance packages contribute differently to the overall project performance. A confirmatory factor analysis (CFA) was used to test whether the proposed co...

Quantitative SWOT Analysis of Public Housing Delivery by Public–Private Partnerships in China Based on the Perspective of the Public Sector

AbstractFacing the challenges of the global financial crisis, the Chinese government planned to build far more public housing than can be provided by the government alone. Meanwhile, the capability of Chinese governments to provide quality public housing on their own is being questioned and reassessed at various levels and in different forms. Accordingly, the introduction of private sector into the development of public housing should be promoted by the Chinese public sector by adopting the public-private partnership (PPP) model. In order to help the Chinese government formulate an appropriate strategy to develop PPP housing in a complex political, financial, legal, and regulatory environment, 16 strength, weakness, opportunity, and threat (SWOT) factors are identified on the basis of an extensive literature review. A structured questionnaire survey from the perspective of the public sector is conducted to analyze and integrate its perceptions of the SWOT factors. On the basis of a survey on SWOT factors,...

Recent advances in modeling the vulnerability of transportation networks

It is well known that, for major infrastructure networks such as electricity, gas, railway, road, and urban water networks, disruptions at one point have a knock on effect throughout the network. There is an impressive amount of individual research projects examining the vulnerability of critical infrastructure network. However, there is little understanding of the totality of the contribution made by these projects and their interrelationships. This makes their review a difficult process for both new and existing researchers in the field. To address this issue, a two-step literature review process is used, to provide an overview of the vulnerability of the transportation network in terms of four main themes - research objective, transportation mode, disruption scenario and vulnerability indicator –involving the analysis of related articles from 2001 to 2013. Two limitations of existing research are identified: (1) the limited amount of studies relating to multi-layer transportation network vulnerability analysis, and (2) the lack of evaluation methods to explore the relationship between structure vulnerability and dynamical functional vulnerability. In addition to indicating that more attention needs to be paid to these two aspects in future, the analysis provides a new avenue for the discovery of knowledge, as well as an improved understanding of transportation network vulnerability.

Perception of Residual Value Risk in Public Private Partnership Projects: Critical Review

AbstractGiven the increased demand for public facilities and the lack of funds and skills to maintain, repair, and replenish the existing facilities, public private partnerships (PPPs) have been widely adopted and have significantly contributed to the development of new infrastructure built throughout the world. However, because many PPP projects will be transferred back to the host governments upon expiry of the concession period, problems related to the subsequent management of PPP projects have not yet been thoroughly studied. Residual value risk (RVR) is a critical concern when the projects revert back to the public sector. Through an extensive literature review and an open-ended questionnaire survey, the perception of RVR in PPP projects is elaborated in this paper, which aims to present a precise definition and meaning of RVR in PPP projects. The survey results indicate that RVR is viewed as an important concern by professionals and academics. The definition of RVR can be phrased as the risk that on...

Performance objective-based dynamic adjustment model to balance the stakeholders’ satisfaction in PPP projects

AbstractAiming to balance the interests of the principal stakeholders (the private sector, the government and the general public) in Public–Private Partnerships (PPP) projects, the satisfaction of stakeholders were researched thoroughly in this paper. A satisfaction evaluation model was structured based on authors’ prior questionnaire survey focusing on the performance objective indicators (POIs) of different stakeholders. The parties’ preferred POIs were identified as follows: all three parties emphasize the objectives of construction quality, service quality, cost, time, and lifecycle cost very much. Individually, the private sector prefer the objectives of profit making and government support, the government prefer the objectives of budget saving and risk transfer, and the general public prefer the objectives of toll rate and the facilities’ quantities. Furthermore, a satisfaction adjustment model was proposed based on the interrelationships of the adjusting POIs and their impact on the stakeholders’ s...

Exploring Key Indicators of Residual Value Risks in China’s Public–Private Partnership Projects

Public–private partnerships (PPPs) are gaining popularity in China because of governments’ increasing budget constraints and the urgent need to develop infrastructure since 2014. However, residual value risk (RVR) is a significant threat to the success of PPP projects and challenges the governance capability of China’s government, where key risk indicators (KRIs) can be used as a measure to reveal the potential presence, level, or trend of RVR. To help the public sector obtain estimated value as specified in a concession agreement when the projects are transferred back to the government at the end of the PPP agreement or in earlier termination due to RVR, this paper proposes and refines a KRI conceptual model composed of seven risk dimensions and 61 indicators. A structured questionnaire survey with PPP experts investigated the relative significance of those 61 KRIs for RVR management in PPPs. Although the survey results show that all KRIs are important, seven risk dimensions contribute differently to the exposure of RVR. A confirmatory factor analysis (CFA) was used to test whether the proposed conceptual model fit the observed set of collected data in a predictable way by goodness-of-fit indices, and to further consolidate the KRIs. The refined KRI model uses 41 KRIs based on survey and CFA results, indicating that residual value (RV) of a PPP project is strongly influenced by effective maintenance, long-term sustainable development, and reasonable profitability and refinanceability. The KRIs including high-quality design work in the early stages of PPP projects, construction quality and public service quality, comparatively low operation costs during the operation period, and feasible technologies adopted by private sectors have a greater value in corresponding dimensions. These 41 KRIs have the ability to indicate trends of losses of RV in PPPs, control weaknesses for RVR management in PPPs, and obtain long-term and sustainable development through PPP projects.

Entry Mode Taxonomy and Choice of Chinese International Construction Companies

AbstractAlong with China’s national strategy “One Belt, One Road,” an increasing number of Chinese construction companies has ventured or will venture into the global market. The choice of entry mo...

The analysis on the policy of access to economically affordable housing in china: an area calculation model based on the incentive mechanism design

Currently, the subject of housing in China is of great interest to many researchers, since improvements in living conditions for the largest population in the world have not kept pace with the territorys economic growth. This paper describes basic social housing situations in China, and assesses the inequality in housing reform since 1990s as a result of overall economic improvement. In order to reduce the degree of inequality in Chinas social housing, this paper is focusing on the policy management of access to economically affordable housing because housing affordability in China is a pressing social and economic issue, particularly for low-income families due to an unreasonable mechanism. The related policies are analyzed in is paper by using incentive mechanism design, which reveals that supervision and announcement system, the restriction in current mechanism, and the area of economically affordable house are critical for the effectiveness of present polices. Furthermore, a housing area calculation model based on the incentive mechanism design is presented and an illustrated case of Beijing City is also conducted, which can maximize the utility of government considering incentive compatibility. Finally, some policy suggestions are explored including enhancing external environment and establishing internal mechanism.

Cumulative effects on the change of residual value in PPP projects: A comparative case study

Public private partnerships (PPPs) have been adopted widely to provide public facilities and services. According to the PPP agreement, PPP projects would be transferred to the public sector. However, problems related to the subsequent management of ongoing PPP projects have not been studied thoroughly. Residual value risk (RVR) can occur if the public sector cannot obtain the project in the desired conditions as required in the agreement when a project is being transferred. RVR has been identified as an important risk in PPPs and has greatly influenced the outputs of the projects. In order to further observe the change of residual value (RV) during the process of PPP projects and to reveal the internal mechanism for reducing the RVR, a comparative case study of two PPP projects in mainland China and Hong Kong was conducted. Based on the case study, different factors leading to RVR and a series of key risk indicators (KRIs) were identified. The comparison demonstrates that RVR is an important risk that could influence the success of PPP projects. The cumulative effects during the concession period can play significant roles in the occurrence of RVR. Additionally, the cumulative effects in different cases can make the RVR different because of different stakeholders’ efforts on the projects and ways to treat RVR. Finally, alternatives for the public sector to treat RVR were proposed. The findings of this research can reduce RVR and improve the performance of PPP projects.