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on Project, Program and Portfolio Management |
| By: | Martin, Elliot; Stocker, Adam; Cohen, Adam; Shaheen, Susan |
| Abstract: | The Mobility on Demand (MOD) Sandbox Demonstration Program provides a venue through which integrated MOD concepts and strategies, supported through local partnerships, are demonstrated in real-world settings. For the 11 MOD Sandbox Demonstration projects, an independent evaluation was conducted that includes an analysis of project impacts from performance measures provided by the project partners and an assessment of the business models used. This document presents the results from the independent evaluation of the Dallas Area Rapid Transit (DART) First and Last Mile Solution MOD Sandbox Demonstration project. Evaluated were hypotheses that explored project impacts on travel behavior, user experiences, first and last mile to public transit accessibility, service quality for passengers with disabilities, and costs. The project improved first and last mile connectivity to DART transit, increased satisfaction among DART transit users, enhanced service for passengers with disabilities, and increased the geographic scope of DART transit service in the Plano area. In addition, wait and travel times for passengers with and without disabilities reflected similar distributions. The subsidy per rider of GoLink services was lower than the low-ridership fixed-route transit services that it replaced in Plano, but it was not lower than the subsidy for DART fixed-route transit in the overall Dallas region. DART project team members were interviewed to better understand challenges, barriers, successes, and broader lessons learned from the project, representing agency personnel from the offices of Innovation, Service Planning, Scheduling, Paratransit Operations, and Marketing. Lessons learned revealed the importance of having pre-planned, ready-to-go projects with committed partners, flexible contracting terms, metrics for adjusting spatial and temporal service coverage (including terminating service if appropriate), vehicle right-sizing, and understanding customer needs. |
| Keywords: | Engineering, Mobility on Demand, MOD, sandbox, shared mobility, mobility as a service, independent evaluation, public transit, first and last mile, microtransit, transportation network companies, TNC |
| Date: | 2021–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsrrp:qt7hz5r5zr&r= |
| By: | Erwin Heurkens; Tom Daamen; Wouter Jan Verheul; Fred Hobma |
| Abstract: | In current European practices, actors in real estate and urban transformation are highly dependent on one another. Contemporary inner-city transformation projects are particularly challenging in terms of collaboration and financing, as they need to address the need for housing as well as new demands in mobility, health, energy, climate adaptation and other sectors. Among other things, such cross-sectoral projects need to allocate funding from multiple public and private sources in a timely fashion, which is a challenge in its own right. Moreover, long-term urban transformation projects require large sums of up-front financing due to high land assembly, site preparation and real estate construction costs. Such financing is usually difficult to obtain. Project proposals face strict conditions from private lenders and investors, and limited availability of government funding, value capturing, and legal co-financing possibilities (Daamen et al., 2020). In many countries, these and other trends have spurred a quest for innovative financing instruments for real estate development (e.g. Squires et al., 2015). The Netherlands is a case in point. Here, innovative financing arrangements that combine the realization of public values and private return are believed to offer great potential for inner-city transformation projects. As part of a study funded by a Dutch government-industry coalition, we identified and assessed two of such innovative financing arrangements: Revolving Funds and Area Improvement Districts (Heurkens et al., 2020). The essence of the Revolving Fund is that public bodies – once private finance due to estimated risks in unavailable – pre-finance the realization of local public amenities and/or private real estate investments with sustainability objectives such as energy transition or shared mobility solutions. Such pre-financing has the precondition that the loan is repaid (with interest) to the fund, thus making it available for reinvestment—hence its revolving nature. The idea of an Area Improvement Districts is based on the financing mechanism behind Business Improvement Districts practiced in the US. These are aimed at obtaining a proportional financial contribution from property owners, investors and (potentially) developers for collective amenities or infrastructures in the area. These contributions are based on the expected increase in real estate value and the social impact of investments, which are pre-financed from a privately managed fund. Both innovative financing arrangements provide possible answers to, and might reinforce, increasing interdependencies between the public and private sector in urban planning and development (Heurkens et al., 2015). In addition, they aim to arrange and designate finance collectively in order to synthesize public and private values in the built environment. Potentially, they could prove to be beneficial for financing specific urban transformation projects with innovative sustainability solutions that have not yet proven to generate satisfactory returns. Nonetheless, both arrangements might also involve institutional changes – ranging from adapting government legislation, rethinking real estate financing structures, or changing actor behaviors and cultures – that prohibit a widespread adoption in practice. Moreover, one might ask whether such hybrid financing arrangements, and associated interdependencies such as shared risks, are desirable from a political and financial risk management point of view. Therefore, further research necessitates a closer examination of the features of, conditions for and effects of applications of innovative financing arrangements in urban transformation practices. |
| Keywords: | area improvement district; innovative financing; revolving fund; Urban Transformation |
| JEL: | R3 |
| Date: | 2021–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2021_56&r= |
| By: | van Koppen, Barbara (International Water Management Institute (IWMI)); Molose, V.; Phasha, K.; Bophela, T.; Modiba, I.; White, M.; Magombeyi, Manuel S.; Jacobs-Mata, Inga |
| Abstract: | The African Water Facility, together with the Water Research Commission, South Africa, as its implementing agent, supported the demonstration project Operationalizing community-led Multiple Use water Services (MUS) in South Africa. As knowledge broker and research partner in this project, the International Water Management Institute (IWMI) analyzed processes and impacts at the local level, where the nongovernmental organization Tsogang Water and Sanitation demonstrated community-led MUS in six diverse rural communities in two of the poorest districts of South Africa, Sekhukhune and Vhembe districts - Ga Mokgotho, Ga Moela and Phiring in the Sekhukhune District Municipality, and Tshakhuma, Khalavha and Ha Gumbu in Vhembe District Municipality. In conventional water infrastructure projects, external state or non-state agencies plan, diagnose, design and prioritize solutions, mobilize funding, and implement the procurement of materials, recruitment of workers and construction. However, this MUS project facilitated decision-making by communities, and provided technical and institutional advice and capacity development. Based on IWMI’s evidence, tools and manuals, the project team organized learning alliances and policy dialogues from municipal to national level on the replication of community-led MUS by water services authorities; government departments of water, agriculture, and others; employment generation programs; climate and disaster management; and corporate social responsibility initiatives. This working paper synthesizes the lessons learned about the six steps of the community-led MUS process in all six communities. The step-wise process appeared to be welcome and effective across the board. The duration of the process and the costs of facilitation, technical and institutional capacity development, and engineering advice and quality control were comparable to conventional approaches. However, the respective responsibilities of the government and communities, also in longer-term co-management arrangements, depended on the type of infrastructure. Some communities were supported to improve their communal self supply systems. In other communities, the process enabled an extension of the reticulation of borehole systems owned, operated and maintained by municipalities. Almost all households used water supplies at homesteads for multiple purposes, underscoring synergies in cross-sectoral collaboration between the water, sanitation and hygiene (WASH) and irrigation sectors. |
| Keywords: | Multiple use water services; Water supply; Co-management; Guidelines; Rural communities; Communal irrigation systems; Small scale systems; Planning; Participatory approaches; Integrated management; Water resources; Water management; Water storage; Water quality; Infrastructure; Boreholes; Construction; Innovation; Technical aid; Collaboration; Costs; Financing; Institutions; Capacity building; State intervention; Nongovernmental organizations; Decision making; Climate change adaptation; Women's participation; Inclusion; Labour; Wages; Villages; Households |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:iwt:worppr:h050124&r= |
| By: | Yeim Tanrvermi; Esra Ural Keskin; Harun Tanrivermis |
| Abstract: | The investments for the development of thermal timeshare facilities have started to grow rapidly. Timeshare property can be defined as a guaranteed, transferable and alternative right that allows its owner(s) to have a limited-term vacation, guarantees to spend at the same time and place every year, provides comfort and legally registered in the land registry. Timeshare properties are used only during a certain period of the year, leasing the remaining times to prevent the facilities from being idle, and this investment model allows a significant contribution to the local economy through the right holders. In this study, the development of timeshare investments in the field of thermal tourism has been examined in general, and in the second stage, interviews were conducted with the right holders and investors of timeshare investments in selected districts of Ankara Province. According to the Turkish Legal System ,the development and management of timeshare investment projects, the buildings and independent sections in the timeshare system must be residential properties, the beneficiary period of each property right holders should be not less than 15 days, the timeshare right can be transferred and left as a heritage to heirs, the facilities must be furnished with the annual maintenance-repair and other operating expenses equally shared, the facilities can be rented in case it cannot be used by the right holders, and the management of the facilities must be realized in accordance with the legal regulations regarding the condominium properties. The research results represent that in timeshare projects based on a condominium-principled ownership system; the total present value of the property price paid by the right owners for a certain use in the selected period of the year and the annual operating expenses are much higher than the present value of the annual rental prices, there is an option to have a holiday in comfortable conditions with the sum of the current value of the annual operating expenses and the cost of the timeshare acquisition, and consequently, timeshare investments are not rational. In the districts where field studies were conducted, although the rental prices/fees and sales values of the real estate subject to timeshare properties are 2-3 times higher than the equivalent properties in the district centre, it has been determined that the attraction of timeshare investments is low for the right holders. It should be emphasized that timeshare facilities need to be analyzed together with both timeshare investor and project developer, and that project development, appraisals, financing, construction, facility and property management services are carried out under the responsibility of real estate development and management experts to increase the project and investment success. |
| Keywords: | condominium and timeshare investments; facility and asset management.; Geothermal resources and thermal facility projects; Project Appraisal |
| JEL: | R3 |
| Date: | 2021–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2021_225&r= |
| By: | Nicolas Mellinger; Lutz Eichholz; Wilko Manz |
| Abstract: | Autonomous vehicles are going to transform the peaceful coexistence of means of transport in urban areas. This development hat multiple effects on participants of the urban transport and the city itself. Overall, four trends can be observed: an increasing autonomous traffic in cities, a growing bicycle traffic due to adapted planning and social development, a revival of the living city and a technical upgrade of the vehicle fleet. These trends necessitate new concepts of planning and technic. This is where the research projects comes in. Project goals and contents: The goal of the project is to investigate and develop solutions for the coming challenges of bicycle traffic in cities in interaction with autonomous vehicles. In doing so, concerns of transport, urbanistic and technic are taken into account. Essential components are transport-related methods as surveys and test drives to recognize and avoid conflicts between bicycles and autonomous vehicles, urbanistic concepts to design cycle paths in urban areas with autonomous vehicles, technical systems in autonomous vehicles based machine learning to detect and predict movements of bicycles and algorithm development to track and predict trajectories of bicycles in urban infrastructure. Aspired project outcomes: Within the scope of the research project, the following outcomes are aspired. Based on the survey outcomes, recommendations to recognize and avoid conflicts are given. The survey outcomes themselves are also essential results of the project. Furthermore, a guideline for traffic an urban planning will be developed. The algorithm to track and predict trajectories of bicycle movements as well as the technical systems in autonomous to detect and track bicycles vehicles will be other important project outcomes. Target groups are planning and engineering offices as well as road construction and urban planning offices, vehicle constructors and startups. Present state of affairs: At the current state, different scenarios for interactions of bicycles with autonomous vehicles are developed and discussed in a project related advisory board. Based on the conclusions, the online survey was designed and completed. The survey is currently in an evaluation process. The outcomes of the survey evaluation will be presented on the ERES conference. Also different scenarios for urban design of bicycle paths are investigated and can be presented and discussed. The suitability of different road types for traffic with cyclists and autonomous vehicles is another important result. Furthermore, the algorithm to detect and track bicycles and other participants in traffic is created. First results of tests with the developed algorithm can be presented as well. |
| Keywords: | autonomous vehicles; bicycle traffic; road design; traffic safety |
| JEL: | R3 |
| Date: | 2021–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2021_176&r= |
| By: | van Koppen, Barbara (International Water Management Institute (IWMI)); Magombeyi, Manuel S. (International Water Management Institute (IWMI)); Jacobs-Mata, Inga (International Water Management Institute (IWMI)); Molose, V.; Phasha, K.; Bophela, T.; Modiba, I.; White, M. |
| Abstract: | The African Water Facility, together with the Water Research Commission, South Africa, as its implementing agent, supported the demonstration project Operationalizing community-led Multiple Use water Services (MUS) in South Africa. As knowledge broker and research partner in this project, the International Water Management Institute (IWMI) analyzed processes and impacts at the local level, where the nongovernmental organization Tsogang Water and Sanitation demonstrated community-led MUS in six diverse rural communities in two of the poorest districts of South Africa, Sekhukhune and Vhembe districts - Ga Mokgotho, Ga Moela and Phiring in the Sekhukhune District Municipality, and Tshakhuma, Khalavha and Ha Gumbu in Vhembe District Municipality. In conventional water infrastructure projects, external state and non-state agencies plan, diagnose, design and prioritize solutions, mobilize funding, and implement the procurement of materials, recruitment of workers and construction. However, this MUS project facilitated decision-making by communities, and provided technical and institutional advice and capacity development. Based on IWMI’s evidence, tools and manuals, the project team organized learning alliances and policy dialogues from municipal to national level on the replication of community-led MUS by water services authorities; government departments of water, agriculture, and others; employment generation programs; climate and disaster management; and corporate social responsibility initiatives. This working paper reports on the local findings of Ga Mokgotho and Ga Moela villages, which had completed construction works. The paper presents an in-depth analysis from the preproject situation to each of the steps of the participatory process, and highlights the resulting benefits of more water, more reliable and sustainable supplies, and multiple benefits, including a 60% and 76% increase in the value of irrigated produce in Ga Mokgotho and Ga Moela, respectively. Women were the sole irrigation manager in 68% and 60% of the households in Ga Mokgotho and Ga Moela, respectively. The user satisfaction survey highlighted communities’ unanimous preference of the participatory process, capacity development and ownership compared to conventional approaches. |
| Keywords: | Multiple use water services; Community management; Water supply; Communal irrigation systems; Participatory approaches; Innovation; Access and benefit-sharing; Water availability; Water demand; Integrated management; Water resources; Water management; Water storage; Infrastructure; Pumps; Wells; Boreholes; Maintenance; Geohydrology; Groundwater; Water distribution; Water use; Domestic water; Livestock; Irrigated farming; Financing; Water users; Households; Livelihoods; Income; Women's participation; Capacity building; State intervention; Nongovernmental organizations; Rural areas; Villages |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:iwt:worppr:h050123&r= |
| By: | Harun Tanrivermis; Md Moynul Ahsan; Sinan Güne; Aylin Blengabs; Orhan Matarac |
| Abstract: | Integrated strategic urban planning in many cities and countries, as well as analysis of current situation in local development, urban transformation and urban conservation together with the participation of all stakeholders in various activities, poses an impact on the success of a project. It is possible to create a useful model with the participation of local people and other stakeholders in the use of urban space, conservation of areas and monuments of natural and historical value and in this way, the success of sustainable urban revitalization at the local level can be improved. In order to develop sustainable approaches to the conservation and revitalization of archaeological, historical and urban areas, it is necessary to increase compliance with local community values, contemporary needs, public participation and stakeholder satisfaction levels. Because, in the analysis of urban development, conservation and real estate projects through a strategic planning approach with the participation of local people and the private sector is considered among the main conditions for ensuring the sustainability of projects. In recent years, importance and priority have been given to the analysis of open and green areas, parks, conservation areas and urban transformation implementation projects in cities, and integrating strategic planning model has adding value in the process. In the city centre of Ankara province, which is the capital of Turkey, there are several large areas among which the most important is Ataturk Cultural Center (AKM) area, which is an historical centre of the city in the Zubeyde Hanm neighborhood of Altindag District. In this study, physical, economic, legal, social and environmental indicators of Atatürk Cultural Center area were determined. In addition to ensuring the preservation and development of historic urban spaces, opportunities for the development of an adequate and effective strategic model and practice-based management tools were evaluated. In the analysis of AKM case study, the relationship between the historical development and the environment of the area was revealed by using the current situation analysis and region data. Based on historical and cultural characteristics and stakeholder views of the area, current use of status and problem analysis of region called the green belt and historical city centre of Ankara Province was conducted. With the data obtained, the difference/gap analysis related to the region was performed and the possible risks were examined in various aspects. In addition to the survey work, project alternatives were determined by taking into account the property and zoning data related to the region, the historical, cultural and symbolic characteristics of the region, and the most appropriate alternative was selected using the Analytical Hierarchy Process (AHP). According to the most appropriate alternative, market and competitiveness conditions were examined, and strategic goals were determined at the real estate level by taking into account the compatibility of the project alternative with the relevant existing corporate-macro strategic plans. According to the income-generating approaches included in the selected project, the path of cost and income estimation was taken and the outline of the strategic action plan was presented by designing the process for the strategic spatial plan. According to the research results, it has emphasized that in real estate development project model with the strategic planning approach, competitive real estate markets and the functioning logic of the current region for sustainable (economic, environmental and social) impacts, the potentials and benefits should be taken into account. According to the results of the field study, it has revealed that the AKM area should be a cultural centre by function; and if integrated with its surroundings, especially the historical city centre it will have a modern appearance that preserves its historical and cultural nature. In addition, according to the results of the competitor analysis and gap analysis, it was determined that the project alternative envisaged to be carried out in the region has a competitive advantage and is compatible with the strategic plans already in practice. The fact that the strategic action plan is compatible with the results of fieldwork shows that the strategic planning approach is consistent in itself. Finally, monitoring and evaluation of the strategic plan with the perspective of 10P model for providing corporate level action. In addition, considering that corporate real estate needs to be increasingly integrated into business strategy, it should be emphasized that corporate real estate strategy and corporate strategy should be harmonized in specialized areas such as AKM. |
| Keywords: | Historic city centre; Strategic alignment and project development; Strategic Planning; sustainability |
| JEL: | R3 |
| Date: | 2021–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2021_179&r= |
| By: | Ann-Christin Sreball |
| Abstract: | Stereotypes of the „dull municipality“ vs. the „cash-hungry developer“ persist and hamper the collaboration – especially if municipal administrations tend to focus on problems rather than solutions or if developers disregard local specifics and focus solely on their return expectations. Yet, it seems municipalities and developers repositioning themselves in Germany: While municipal administrations digitize and keep design processes in-house again, developers shift their focus from specific asset classes to development of entire neighbourhoods. Moreover, planning tasks to design sustainable projects are becoming increasingly complex requiring more coordination between both parties. Therefore, understanding the perspectives and needs of both stakeholders will promote a more constructive collaboration. A qualitative study with more than 30 experts from planning agencies, councillors, project development companies, services providers and organisations, revealed 3 types of factors shaping the project collaboration: Unique soft, unique hard and generalising factors, with unique referring to factors applicable to one specific person or project context only. Some examples for “unique hard factors” are urban planning framework conditions or local real estate market structures, and “unique soft factors” such as local decision-making structures, the professional background or past experiences of the persons involved as well as the matter of mutual trust. Generalising factors can be grouped into promoting and impeding, such as frequent and transparent communication or vague objectives of urban planning. One of the areas of tension lies, e.g., in the detail level of information. If the developer approaches the administration with already made concepts and the final floor plan, the necessary room to jointly develop the project is lacking from the very beginning. Municipalities admit that they need to articulate their urban development objectives more clearly to provide developers with the appropriate framework conditions for the project. The conference contribution will highlight more findings of the interviews in detail. Drawn conclusions and recommended actions will be put up for discussion. |
| Keywords: | Collaboration; Communication; Sustainable Urban Development |
| JEL: | R3 |
| Date: | 2021–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2021_152&r= |
| By: | Esra Keskin; Yeim Tanrvermi; Harun Tanrivermis |
| Abstract: | The need for housing has continued to increase rapidly due to migration and population growth. The excess demand for urban centres in particular has led to an increase in land prices and therefore the transition to tall buildings has accelerated. The housing ownership rate for households in the urban areas is observed to be 60%, and investment in housing acquisition has been rapidly increased over the last 10 years. In addition, households with more than one residence in cities or second housing investments had increased continually. With the increase in high-rise buildings over time, management problems also began to arise. In order to meet the social needs of the owners sitting in high-rise buildings, special arrangements were needed to address the problems arising from the existence of areas subject to common area use of real estate. In order to solve the existing problems, the Law No. 634 dated 23.06.1965 were enacted and come into force and then the amendment of the Law No. 5711 with the title of “Special Provisions Concerning Condominium Buildings” together with the Law No. 634 article 66 and other clauses have been added. Management of detached housing, multi-storey housing and sheltered sites and co-operative sites is carried out by the management chosen by the floor owners board according to the Law No. 634.Nevertheless, there are significant problems in the management of common areas by floor owners in terms of service delivery, quality of service and compliance with legislation. It is not possible for floor owners to be experts in real estate law, facility, and real estate management in general and to provide management services in accordance with the legislation. In the last two decades, it is observed that different models are applied together in the management of housing structures due to the increasing management problems and the changing of nature of housing investments. These are such as sites managed by floor owners, real estate in which management services are partially or completely outsourced, and facilities managed by cooperatives. In according to building regulations such as; parking, elevator, waste water discharge, energy performance, thermal insulation, shelter, central heating, fire protection, annual management fee payment, notification law and work times regulations, professional practices in building management is missing and need to be implemented to fil the gap. In the field study, the results of in-depth interviews, surveys and observations made with the buildings and site managers in the northern part of Ankara Urban Transformation Project and Dikmen Valley Urban Transformation Project were evaluated. In the buildings and site managers’ survey; questions were asked regarding the demographic characteristics of the interviewees, the formation of the management bodies, the management model of the site, management problems and development opportunities. In this way, attention was paid into analyzing the management of condominium buildings in the transformation areas, identifying the problems that restrict development opportunities, and conducting interviews within the framework of questions prepared to analyze the approaches of managers and users to management of condominium buildings. In the case of Turkey, it is observed that managers were chosen by the floor owners in many housing projects. The chosen manager is usually coming from one of the floor owners, but in some cases he or she may come from outside and usually a non-professional. However, the management of condominium buildings is also an area that requires some expertise to deal with. Leaving the management of many floor owners and structures with common and joint ownership areas to persons with no legal expertise raises many problems in practice. As a result of poor management practices, there are losses in collection management fees and value losses due to the increase in vacancy rates. In the projects where management is carried out by a facility management firm and expertise, it is seen that existing problems are resolved easily and the demand for the projects increases. Particularly in the complex buildings or super structure with social facilities, different security gates and personnel, it has encountered that there is a problem of high dues and costs which must be reduced from execution of management by a facility management company makes an effective difference in solving existing problems. The fact that the management of the mass housing by a facility management company brings a higher burden in terms of cost, it is seen that the management of these real estate by facility managers provides higher profit gains in the long run. However, in small housing projects, the difference in the tax rate is a deterrent to the transfer of management to a professional facility management company. Lack of adequate knowledge and experience of managers chosen among floor owners or from outside; personnel and heating costs, leasing of common areas, etc., causes wrong decisions in many aspects and causes cost increases in the long run. When the selected two large mass housing settlements in Ankara province were examined, it is concluded that the success of the facility management has an important role in the formation of brand value. In recent years, the demand for brand housing has increased. It is observed that the success in facility management was influential in the increase in demand of housing investment. In addition, the management of facilities by professional companies is important to ensure the sustainability of residential buildings. It has been found that facility management, which is seen as an interdisciplinary field of study, has become a requirement in residences and additional social and commercial buildings within the framework of the examples studied, has a direct effect on raising the satisfaction ratings of residents and in particular increasing the value of investment. |
| Keywords: | economics of housing investments; facility management and urban transformation area; housing; Housing management |
| JEL: | R3 |
| Date: | 2021–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2021_173&r= |
| By: | Cristian Luise (Dept. of Management, Università Ca' Foscari Venice); Peter J. Buckley (Centre for International Business, Leeds University Business School); Hinrich Voss (Department of International Business, HEC Montreal); Emmanuella Plakoyiannaki (Faculty of Business, Economics and Statistics, University of Vienna); Elisa Barbieri (Dept. of Economics, Università Ca' Foscari Venice) |
| Abstract: | Infrastructural assets are vital for a country’s economic and social development. Governments typically provide the regulation and administration of these assets, while multinational enterprises (MNEs) develop, construct, finance, and operate them. The Belt and Road Initiative (BRI) promises infrastructure projects that deliver economic and social benefit for both the host country and the MNE. We argue that BRI objectives and project scope are kept in check in the host country through an existing nexus of property rights. Chinese investors need to understand the bargaining position and property rights actors across multiple levels, across space, and be mindful of changes over time when negotiating for an infrastructure investment. We interrogate four case studies of Chinese investment negotiations in Italian ports to explore the conceptual framework and to examine how the negotiation process evolved following BRI. |
| Keywords: | Belt and Road Initiative, infrastructure, FDI policy, emerging market multinationals, contract theory, Italy, ports, case study. |
| JEL: | F23 |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:vnm:wpdman:184&r= |
| By: | Hatice Jenkins (Department of Banking and Finance Eastern Mediterranean University, North Cyprus); Glenn P. Jenkins (Department of Economics, Queen's University, Kingston, Ontario K7L 3N6, Canada) |
| Abstract: | One outcome of the existence of social capital in a community is that individuals will take into consideration the welfare of other members of the community. If an investment project is undertaken that causes the poorer members of society to increase their consumption of goods and services to improve the satisfaction of their basic needs, then other members f the community who are not directly affected y the project may also experience an increase in the level of their economic welfare. This approach takes into consideration both the change in the economic welfare of the recipients of the assistance the enhances the satisfaction of basic needs in the community, and also the tastes, preferences, and economic welfare of the rest of the community. These basic needs externality can be created by investments because the project lowers the price of a good or service used to satisfy their basic needs, or by raising the incomes of the poor groups so that they now will buy more of the goods that are used to satisfy their basic needs. This paper develops a theoretical framework for the evaluation of the basic need’s externality created by the investment. It then applies this theoretical framework to the case of a project that proposes to expand the water supply in the south part of the city of Manila. We find that these externalities can be quite important. In this particular case a conservative evaluation of the basic need’s externality leads to a value that is over 4 times as large as the financial shortfall of the project. |
| Keywords: | social capital, basic needs, economic externalities, investment appraisal |
| JEL: | D61 D62 H43 |
| Date: | 2021–08–06 |
| URL: | http://d.repec.org/n?u=RePEc:qed:dpaper:4578&r= |