Procurement Protocols for Public-Private Partnered Projects
Publication: Journal of Construction Engineering and Management
Volume 127, Issue 5
Abstract
Infrastructure megaprojects have often failed to meet original stakeholder expectations in both “pure” free markets and totally central-planned economies. Such failures provide the rationale for public-private partnerships (PPPs) that synergize both public and private strengths. Build-operate-transfer (BOT) type schemes are a popular type of PPP. They improve project procurement environments by changing traditionally adversarial scenarios to partnerships that integrate finance, design, construction, and operation. Many countries are still inexperienced in the complexities and implications of PPPs. The growing body of multi-country experiences in this domain needs to be tapped through comparison and benchmarking. Various kinds of BOT-type infrastructure developments in both developed and developing countries are compared in this paper to identify strengths from successful approaches and to draw lessons from less successful or abortive projects. Particular examples include toll roads in the United States, the Private Finance Initiative in the United Kingdom, and BOT and its variants in China. The experiences derived and lessons drawn are expected to improve the procurement protocols of public clients in future partnered infrastructure projects.
Get full access to this article
View all available purchase options and get full access to this article.
References
1.
Barale, L., and Thomas, M. ( 1998). “Program stalls on economic downturn.” South China Morning Post, Dec. 10, 5.
2.
Bates, M. ( 1997). Review of PFI (public/private partnerships), HM Treasury, London.
3.
Bateson, D. ( 1997). “Infrastructure development in Hong Kong through BOT.” The Int. Constr. Law Rev., 14(1), 136–140.
4.
Birgonul, M. T., and Dikmen, I. ( 1996). “A methodology for the evaluation of proposals tendered on the basis of build-operate-transfer (BOT) model.” Proc., 12th Annu. Conf. Assn. of Res. in Constr. Mgmt., Vol. 1, Sheffield Hallam University, Sheffield, U.K., 140–149.
5.
Birnie, J. ( 1998). “Risk allocation to the construction firm within a private finance initiative (PFI) project.” Proc., ARCOM Conf., The University of Reading, London, 527–534.
6.
Competition and the Private Finance Initiative: A consultation note. (1993). HM Treasury, London.
7.
Competition and the Private Finance Initiative: Responses to the consultation note. (1994). HM Treasury, London.
8.
Construction Industry Council (CIC). ( 1998). Constructors' key guide to PFI, Thomas Telford, London.
9.
Guidelines on government tender procedure, Part II (private sector infrastructure projects). (1998). Ministry of Finance and Planning, Sri Lanka.
10.
Kam, H. L., Yue, C. M. K., and Tam, T. ( 1998). “The operation and management of toll highways in China—An investor's perspective.” Proc., Mainland and Hong Kong BOT Conf., Works Bureau of Hong Kong, Hong Kong, China, Part 2, 113–121.
11.
Kumaraswamy, M. M., and Zhang, X. Q. ( 2001). “Government role in BOT-led infrastructure development.” Int. J. Proj. Mgmt., 19(4), 195–205.
12.
Levy, S. M. ( 1996). Build, operate, transfer, Wiley, New York.
13.
Merna, A., and Smith, N. J. ( 1996). Guide to the preparation and evaluation of build-own-operate-transfer (BOOT) project tenders, Asia Law & Practice, Hong Kong.
14.
Miller, J. B. ( 1999). “Applying multiple project procurement methods to a portfolio of infrastructure projects.” Procurement systems: A guide to best practice in construction, E & FN Spon, London, 209–227.
15.
Miller, J. B., Garvin, M. J., Ibbs, C. W., and Mahoney, S. E. (2000). “Toward a new paradigm: Simultaneous use of multiple project delivery methods.”J. Mgmt. in Engrg., ASCE, 16(3), 58–67.
16.
Mustafa, A. ( 1999). “Public private procurement system: The critical issues in implementing PFI.” Proc., CIB and W55 Joint Triennial Symp.—Customer Satisfaction: A Focus for Res. and Pract., University of Cape Town, Cape Town, South Africa, 247–255.
17.
Ogunlana, S. O. ( 1997). “Build operate transfer procurement traps: Examples from transportation projects in Thailand.” Proc., CIB W92 Symp. on Procurement—A Key to Innovation, International Council for Building Research, Studies and Documentation, Rotterdam, The Netherlands, 585–594.
18.
Partnership for prosperity: The Private Finance Initiative. (1997). HM Treasury, London.
19.
Roberts, T. ( 1999). The funding revolution—New routes to project fundraising, Falmer Press, London.
20.
Asian Business, March, 60–69.
21.
TAR: PRC 30063, Asian Development Bank, Metro Manila, Philippines.
22.
. TAR: PRC 29487, Asian Development Bank, Metro Manila, Philippines.
23.
. TAR: TRA 30150, Asian Development Bank, Metro Manila, Philippines.
24.
Tiong, R. L. K., and Alum, J. ( 1997). “Evaluation of proposals for BOT projects.” Int. J. Proj. Mgmt., 15(2), 67–72.
25.
Walker, C., and Smith, A. J. ( 1995). Privatized infrastructure: The BOT approach, Thomas Telford, London.
26.
Walsh, K. ( 1995). Public services and market mechanism: Competition, Contracting and the new public management, MacMillan Press Ltd., London.
27.
Wang, S. Q., and Tiong, R. L. K. ( 2000). “Case study of government initiatives for PRC's BOT power plant project.” Int. J. Proj. Mgmt., 18(18), 69–78.
28.
Wang, S. Q., Tiong, R. L. K., Ting, S. K., and Ashley, D. (1999). “Political risks: Analysis of key contract clauses in China's BOT project.”J. Constr. Engrg. and Mgmt., ASCE, 125(3), 190–197.
29.
Wang, S. W., Tiong, R. L. K., Ting, S. K., Chew, D., and Ashley, D. (1998). “Evaluation and competitive tendering of BOT power plant project in China.”J. Constr. Engrg. and Mgmt., ASCE, 124(4), 333–341.
30.
Zhang, W. R., Wang, S. Q., Tiong, R. L. K., Ting, S. K., and Ashley, D. ( 1998). “Risk management of Shanghai's privately financed Yan'an Donglu tunnels.” Engrg., Constr. and Arch. Mgmt., 5(4), 399–409.
31.
Zhang, X. Q., and Kumaraswamy, M. M. (2001). “Hong Kong experience in managing BOT projects.”J. Constr. Engrg. and Mgmt., ASCE, 127(2), 154–162.
Information & Authors
Information
Published In
Journal of Construction Engineering and Management
Volume 127 • Issue 5 • October 2001
Pages: 351 - 358
History
Received: May 31, 2000
Published online: Oct 1, 2001
Published in print: Oct 2001
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.