nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2014‒09‒05
nine papers chosen by
Arvi Kuura
Tartu Ülikool

  1. Modeling Process of Decision Making on Selection of Investment Projects in Fuzzy Circumstances By Vilayat Valiyev
  2. The interaction between firms and Government in the context of investment decisions: a real options approach By Vitor Carvalho; Diogo Barbosa; Paulo Jorge Pereira
  3. Standardized Baseline Setting Methodology for Energy Related Projects in the International Climate Change Policy By HARUO IMAI; Jiro Akita; Hidenori NIizawa
  4. Rural Road Development in India : An Assessment of Distribution of PMGSY Project Benefits in Three States by Gender and Ascribed Social Groups By World Bank
  5. Aid for Trade in Asia and the Pacific: Driving Private Sector Participation in Global Value Chains By Asian Development Bank (ADB); ; ;
  6. Working Together in Pursuit of Inclusive Business: Sharing the Latin American and Caribbean Experience with Asia and the Pacific: A Retrospective By Asian Development Bank (ADB); ; ;
  7. INDIA: Gender Equality Diagnostic of Selected Sectors By Asian Development Bank (ADB); ; ;
  8. Prospects for Carbon Capture and Storage in Southeast Asia By Asian Development Bank (ADB); ; ;
  9. Japan Fund for Poverty Reduction Annual Report 2012 By Asian Development Bank (ADB); ; ;

  1. By: Vilayat Valiyev
    Abstract: Decision making on selection of investment project is one of the necessary stages of project analysis. At this stage, a multiplicity of investment projects, various interlinkages and characteristics are ana-lyzed usually. In a general case, when there are a number of variations of a single project or a number of closely linked investment projects to assess, then it is necessary to consider all alternative options of realization of a given project or a pool of projects at the time of selection. The analysis of a group of investment projects and selection of the best one among those as well as ranking by attractiveness is carried out through a complex use of criteria of efficiency of investments. Decision making on selection of investment projects cannot be realized just through the use of one criterium only. Indeed, a character, purpose and requirements of each investment project are differ-ent, while the actual process is accompanied with uncertainty in most cases. In this case, no single criterium in isolation cannot provide sufficient information, based on which a decision can be made on the attractiveness of the project. It is possible only after analysis of the entire complex of criteria of efficiency of investments. As such, the most important and challenging task is to select the most priority investment projects as well as rank the projects by priority accounting for a multiplicity of factors with impact in the cir-cumstances of multicriteriality. For this purpose, in article the methodological aspect of common characteristic features of main stages and criteria of appraisal of economic effectiveness of investment projects were researched and for the first time a comprehensive approach was proposed to appraise and select a group of priority investment projects meeting requirements of various criteria of effectiveness accounting for impact of different technical, technological, economic, financial, organizational, political and other factors in the circumstances of fuzziness of situation, which enables the development of a more effective pro-gram of investments. We propose a new algorithm of selection of optimal project on the basis of relationship of preference by degree of relative quality of projects considered and with application of methods based on fuzzy multiplicities, fuzzy relaionship of preference and multicriteriality of selection enabling a single ap-proach to solving the problem: identification of degree of impact of various factors and finding a li-mited number of the most influential factors; assessment of impact of various factors on ranking of criteria by their relative importance; selection of a group of a more priority projects. The proposed methodology may be applied successfully in decision making on appraisal and selection of factors, criteria and projects for various sectors of economy.
    Keywords: Azerbaijan, Optimization models, Finance
    Date: 2014–07–03
  2. By: Vitor Carvalho; Diogo Barbosa; Paulo Jorge Pereira
    Abstract: Inspired by the current European crisis, the main goal of this paper is to find how to promote investment, as we think that it has a crucial role on firms’ evolution and economic performance. In fact, our motivation is to find a possible solution to promote economic growth with few Government resources. However, in our approach we try to follow not only the firm point of view, but also the Government perspective. Accordingly, we try to obtain the optimal behaviour both for firms and Government by managing some key parameters to reduce the critical value and thus to hasten the private investment. Although we know that immediate exercise of the option to invest may not be optimal for individual projects, we try to maximize aggregate welfare by promoting that investment. Therefore, during economic crisis it may be crucial to hasten the investment, because it's when it is more necessary. By exploring the interaction between Government and firms, and the concerns of both, we develop a Real Options model (Dixit and Pindyck (1994)) which explores some key factors for decision-making. The outcome will be a model that drives the optimal behaviour for firms and Government on their decision to invest and promote investment, respectively. To be more realistic, the model will take in account, not only inefficiencies (both concerning the implementation and management of the project), but also the economic benefits of investing, i.e., the investment multiplier effect in the economy. For a better analysis, we study the sensitivity for the key parameters and define regions for different types of investment and consider alternative solutions too. Among the main conclusions we find that the probability of being optimal for the Government to subsidize private investment rather than investing directly is greater the larger the private investment multiplier effect, the tax rates, the private present value of the profit flows, the private cost of the investment and, also, the inefficiency level of the Government. By calibrating the model for Portugal, we have also concluded that it could be better for the Portuguese Government to subsidize the investments in infrastructure and in other sectors with a high level of public inefficiency, while it could be more advantageous for the Government to implement directly public investment in sectors as education and healthcare.
    Keywords: Portugal, Finance, Public finance
    Date: 2013–06–21
  3. By: HARUO IMAI; Jiro Akita; Hidenori NIizawa
    Abstract: After five years of Kyoto Protocol, now it is the time to review its impact and possible improvement, although KP itself in a sense suffers from a decline in the number of countries accepting emission quota. One notable feature of KP was the introduction of baseline-credit mechanism called the Clean Development Mechanism (CDM) to assist nations to reduce emissions within the assigned amount. There was several mistakes pointed out in the design of this mechanism, and among them is the dominance of non-energy related projects in the supply of the credits. Now, the reform of CDM is proposed by the CDM-EB (executive board) and still the scheme developed by the UN for CDM is considered a valuable infrastructure which can be shared by many alternative mechanisms as well as regional agreement which make use of offset schemes. However, among the proposed reform is the standardization of baselines which seems to contain several potential problems. In this paper, we shall examine several problems in this proposal taking the instances of projects which improves the emissions from a coal-fired power plant as discussed in Hayashi and Michelowa (2012).  Among others, the proposal attempt to bind together several project options from energy efficiency project like the use of supercritical technology, to fuel switch project like a switch to LNG, and ultimately to the renewable energy. Mixing these together, the proposal sets the baseline and additionality criterion at a certain percentage point of the cumulative distribution. We shall point our several issues spotted in this proposal and try to fine a better option. Based on these observations, we examine the method to strike a balance between transaction costs and environmental integrity. See above See above
    Keywords: NA, Energy and environmental policy, Energy and environmental policy
    Date: 2013–09–05
  4. By: World Bank
    Keywords: Poverty Reduction - Rural Poverty Reduction Transport Economics Policy and Planning Housing and Human Habitats Social Development - Social Accountability Culture and Development - Anthropology Communities and Human Settlements Transport
    Date: 2014–06
  5. By: Asian Development Bank (ADB); (Office of Regional Economic Integration, ADB); ;
    Abstract: The formation of a Regional Technical Group (RTG) on Aid for Trade for Asia and the Pacific was a key recommendation to emerge from the Aid for Trade Regional Review Meeting at the Asian Development Bank (ADB) headquarters in Manila in 2007 and the Global Aid for Trade Review Meetings at the World Trade Organization in Geneva in 2007 and 2009. Reflecting the principles of country ownership of Aid for Trade, the RTG operates under the stewardship of RTG co-chairs, representatives of Cambodia and Japan. The RTG comprises members from recipient and donor countries involved in formulating and implementing Aid for Trade policies and development agencies in the region. ADB is a member and serves as the Secretariat to the RTG. The RTG started as a pilot project to provide an informal regional forum for discussing Aid for Trade issues and proposals, sharing good practices, taking stock of available analytical work on Aid for Trade in the region, and building partnerships among actors and stakeholders. It seeks to formulate an integrated approach to operationalize Aid for Trade in the medium term.
    Keywords: development assistance, trade, aid for trade, aft, asia and the pacific, value chains, global value chains, private sector participation, World Trade Organization, public-private partnership, regional technical group, official development assistance, investment climate, south-south cooperation, trade finance, frontier economies
    Date: 2013–10
  6. By: Asian Development Bank (ADB); (Regional and Sustainable Development Department, ADB); ;
    Abstract: In 2012, the Asian Development Bank (ADB) and the Inter-American Development Bank (IDB) entered into a formal partnership on South–South cooperation. One of the priority topics for this inter-institutional cooperation is inclusive business. Since 2008, the IDB has built up a dedicated program called Opportunities for the Majority (OMJ) for Latin America and the Caribbean with 45 private sector projects worth $250 million, leveraging more than $1 billion of additional investments, and 33 grant-financed technical assistance projects. ADB recently created its Inclusive Business Initiative to provide specific technical assistance and promote private sector investment that benefits the poor and lower-income groups in Asia and the Pacific. This publication summarizes the IDB’s OMJ program and provides recommendations for ADB to learn from Latin America in the pursuit of inclusive business. It is part of the IDB–ADB cooperation on knowledge exchange between the two regional development banks in Latin America and the Caribbean and in Asia and the Pacific.
    Keywords: business, investment, Latin America, Caribbean, inclusive business, base of the pyramid, private sector, inclusive growth
    Date: 2013–11
  7. By: Asian Development Bank (ADB); (South Asia Department, ADB); ;
    Abstract: Concerns about persisting gender-based exclusion from the benefits of development have encouraged the Government of India and its partner institutions and donor agencies to mainstream gender in its policies, programs, and projects. This publication provides a gender analysis of six priority sectors—agriculture, energy, education, finance and public sector management, transport, and urban development—and suggests possible further actions to strengthen ADB approaches in these sectors. It is expected to provide the basis for increased attention to gender issues and opportunities in developing the India partnership strategy for 2013–2017.
    Keywords: india, Gender equality, gender mainstreaming, india women, gender equality diagnostic, gender gaps, gender inequalities, violence against women, discrimination against women, poor women
    Date: 2013–03
  8. By: Asian Development Bank (ADB); (Southeast Asia Department, ADB); ;
    Abstract: This report was produced under the Technical Assistance Grant: Determining the Potential for Carbon Capture and Storage (CCS) in Southeast Asia (TA 7575-REG), and is focused on an assessment of the CCS potential in Thailand, Viet Nam, and specific regions of Indonesia (South Sumatra) and the Philippines (CALABARZON). It contains inventories of carbon dioxide emission sources, estimates of overall storage potential, likely source-sink match options for potential CCS projects, and an analysis of existing policy, legal, and regulatory frameworks with a view toward supporting future CCS operations. The report also presents a comparative financial analysis of candidate CCS projects, highlights possible incentive schemes for financing CCS, and provides an actionable road map for pilot, demonstration, and commercial CCS projects.
    Keywords: energy and environment, climate change mitigation, Southeast Asia, carbon market, greenhouse gases, GHG emission, carbon dioxide emission, carbon capture and storage, Clean Development Mechanism, fossil fuels, indonesia, philippines, thailand, vietnam
    Date: 2013–10
  9. By: Asian Development Bank (ADB); (Office of Cofinancing Operations, ADB); ;
    Abstract: The Japan Fund for Poverty Reduction’s (JFPR) 2012 Annual Report is the 12th such report and covers the period 1 January–31 December 2012. It presents the JFPR’s background and rationale, implementation progress, and achievements. The JFPR was established in May 2000 and provides direct grant assistance to the poorest and most vulnerable groups in developing member countries (DMCs) of the Asian Development Bank (ADB) while fostering long-term social and economic development. The grants target poverty reduction initiatives with the direct participation of nongovernment organizations, community groups, and civil society. In 2009, the Government of Japan and ADB expanded the scope of JFPR to include provision of support to DMCs through capacity development, policy and advisory, research and development, and project preparatory technical assistance.
    Keywords: jfpr, grants, project financing, grant assistance, project grants, dmc, vulnerable groups, jfpr projects, technical assistance, disbursements, adb poverty funds, adb assistance, project support, jfpr operations, 2012 activities
    Date: 2013–12

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