scholarly journals Comparative performance of PPPs and traditional procurement projects in Indonesia

2017 ◽  
Vol 30 (2) ◽  
pp. 118-136 ◽  
Author(s):  
Gigih Udi Atmo ◽  
Colin Duffield ◽  
Lihai Zhang ◽  
David Ian Wilson

Purpose The purpose of this paper is to investigate the outcomes of Indonesian power projects as representative projects of Asian emerging economies that were procured via public-private partnerships (PPPs) and traditional public sector procurement. Power generation infrastructure delivery in emerging economies frequently seeks private participation via PPPs as one of the key mechanisms to attract private finance. Undertaking a comparative benchmark study of the outcomes of Indonesian power projects provides an opportunity to explore the historic evidence as to whether PPPs deliver better outcomes than traditional public procurement in emerging economies. Design/methodology/approach This paper reports on a study of the performance of 56 Indonesian power projects procured via either PPPs or traditional procurement. First, it focusses on project time and cost outcomes of power plant facility during construction and commissioning and then extends this comparison to consider the operating availability of power plants during their first two years of operation. Findings The results indicate that PPP projects had superior time and operating availability to those procured traditionally whereas no significant differences were identified in the cost performance between PPPs and traditionally procured projects. These findings highlight the importance of adopting policies that are supported by broader sources of international financiers and high quality power plant developers. Research limitations/implications The quality performance analyses of projects (based on equivalent available factor indices) were limited to the power plants in the Java-Bali region where the majority of projects are large scale power plants. Practical implications This study provides an empirical basis for governments of emerging economies to select the most beneficial procurement strategy for power plant projects. It highlights the importance of selecting experienced providers and to adopt policies that attract high quality international project financiers and power plant developers. This includes the need to ensure the commercial viability of projects and to seriously consider the use of cleaner power technologies. Originality/value This study is the first to compare the outcomes of power projects in Asian emerging economies delivered via PPPs against those delivered by traditional public procurement that includes consideration of the quality of the delivered product.

2020 ◽  
Vol 24 (3) ◽  
pp. 55-65
Author(s):  
Ephraim Bonah Agyekum ◽  
Bright Kwame Afornu ◽  
Michael Nii Sanka Ansah

AbstractThis paper evaluated the economic potential of three different photovoltaic energy technologies at a selected site, Wa, in the Upper West region of Ghana. The cost of energy and net present value metrics were used to ascertain the cost-effectiveness of these technologies (fixed, single and double axis tracker systems). From the analysis, all three technologies are economically viable at the selected site, however, a sensitivity analysis shows that the fixed axis tracker is unviable at a discount rate above 2 % whiles that of the single and double axis power plants also become impracticable at a discount rate above 6 % using the financial input parameters adopted for the study. This is an indication that, even though the selected site may have the required solar radiation for the development of large-scale PV power plant, there is the need to create the necessary conducive financial environment to enable such projects to become viable. The double axis tracking system was identified as the optimum system that should be deployed at the selected site to get the best in terms of affordability of electricity to consumers and equity payback.


1999 ◽  
Vol 39 (10-11) ◽  
pp. 289-295
Author(s):  
Saleh Al-Muzaini

The Shuaiba Industrial Area (SIA) is located about 50 km south of Kuwait City. It accommodates most of the large-scale industries in Kuwait. The total area of the SIA (both eastern and western sectors) is about 22.98 million m2. Fifteen plants are located in the eastern sector and 23 in the western sector, including two petrochemical companies, three refineries, two power plants, a melamine company, an industrial gas corporation, a paper products company and, two steam electricity generating stations, in addition to several other industries. Therefore, only 30 percent of the land in the SIA's eastern sector and 70 percent of land in the SIA's western sector is available for future expansion. Presently, industries in the SIA generate approximately 204,000 t of solid waste. With future development in the industries in the SIA, the estimated quantities will reach 240,000 t. The Shuaiba Area Authority (SAA), a governmental regulatory body responsible for planning and development in the SIA, has recognized the problem of solid waste and has developed an industrial waste minimization program. This program would help to reduce the quantity of waste generated within the SIA and thereby reduce the cost of waste management. This paper presents a description of the waste minimization program and how it is to be implemented by major petroleum companies. The protocols employed in the waste minimization program are detailed.


Atmosphere ◽  
2021 ◽  
Vol 12 (7) ◽  
pp. 811
Author(s):  
Yaqin Hu ◽  
Yusheng Shi

The concentration of atmospheric carbon dioxide (CO2) has increased rapidly worldwide, aggravating the global greenhouse effect, and coal-fired power plants are one of the biggest contributors of greenhouse gas emissions in China. However, efficient methods that can quantify CO2 emissions from individual coal-fired power plants with high accuracy are needed. In this study, we estimated the CO2 emissions of large-scale coal-fired power plants using Orbiting Carbon Observatory-2 (OCO-2) satellite data based on remote sensing inversions and bottom-up methods. First, we mapped the distribution of coal-fired power plants, displaying the total installed capacity, and identified two appropriate targets, the Waigaoqiao and Qinbei power plants in Shanghai and Henan, respectively. Then, an improved Gaussian plume model method was applied for CO2 emission estimations, with input parameters including the geographic coordinates of point sources, wind vectors from the atmospheric reanalysis of the global climate, and OCO-2 observations. The application of the Gaussian model was improved by using wind data with higher temporal and spatial resolutions, employing the physically based unit conversion method, and interpolating OCO-2 observations into different resolutions. Consequently, CO2 emissions were estimated to be 23.06 ± 2.82 (95% CI) Mt/yr using the Gaussian model and 16.28 Mt/yr using the bottom-up method for the Waigaoqiao Power Plant, and 14.58 ± 3.37 (95% CI) and 14.08 Mt/yr for the Qinbei Power Plant, respectively. These estimates were compared with three standard databases for validation: the Carbon Monitoring for Action database, the China coal-fired Power Plant Emissions Database, and the Carbon Brief database. The comparison found that previous emission inventories spanning different time frames might have overestimated the CO2 emissions of one of two Chinese power plants on the two days that the measurements were made. Our study contributes to quantifying CO2 emissions from point sources and helps in advancing satellite-based monitoring techniques of emission sources in the future; this helps in reducing errors due to human intervention in bottom-up statistical methods.


2012 ◽  
Vol 2 (8) ◽  
pp. 1-9
Author(s):  
Saroj Koul

Subject area Operations and human resourcing. Study level/applicability This case study is intended for use in graduate, executive level management and doctoral programs. The case study illustrates a combined IT and HR driven participative management control system in a flexible organization structure. It is intended for a class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. Case overview The case describes the situation of managing unskilled workforces (≥14,000 workers) during the construction phase of the 4 × 250MW power plants both for purposes of turnout as well as due compensation, in the event of an accident. The approved labour forces appointed for 45 × 8 h. Man-days after a rigorous fitness test and approvals of the safety officer are allocated housing and other necessary amenities and a commensurate compensation system. Expected learning outcomes These include: illustrating typical organizational responsibility structure at a construction site of a large power plant; illustrating the planning and administrative control mechanism in implementing strategy at a construction site of a large power plant; offering students the opportunity to understand and view a typical operational (project) structure; allowing students to speculate adaptations in the wake of an ever-changing business and company environment; and providing an opportunity to introduce a power scenario in India, Indian labour laws and radio frequency identification technology and to relate this to the case in context. Supplementary materials Teaching notes are available; please consult your librarian for access.


2012 ◽  
Vol 33 (4_suppl3) ◽  
pp. S381-S389 ◽  
Author(s):  
Philippe Guinot ◽  
Vincent Jallier ◽  
Alessandro Blasi ◽  
Christophe Guyondet ◽  
Marc Van Ameringen

Background Vitamin and mineral premix is one of the most significant recurring input costs for large-scale food fortification programs. A number of barriers exist to procuring adequate quality premix, including accessing suppliers, volatile prices for premix, lack of quality assurance and monitoring of delivered products, and lack of funds to purchase premix. Objective To develop and test a model to procure premix through a transparent and efficient process in which an adequate level of quality is guaranteed and a financial mechanism is in place to support countries or specific target groups when there are insufficient resources to cover the cost of premix. Methods Efforts focused on premixes used to fortify flour, such as wheat or maize (iron, zinc, B vitamins, and vitamin A), edible oils (vitamins A and D), and other food vehicles, such as fortified complementary foods, complementary food supplements, and condiments. A premix procurement model was set up with three distinct components: a certification process that establishes industry-wide standards and guidelines for premix, a procurement facility that makes premix more accessible to countries and private industry engaged in fortification, and a credit facility mechanism that helps projects finance premix purchases. Results After three years of operation, 15 premix suppliers and 29 micronutrient manufacturers have been certified, and more than US$23 million worth of premix that met quality standards has been supplied in 34 countries in Africa, Central and Southern Asia, and Eastern Europe, reaching an estimated 242 million consumers. Conclusions The Premix Facility demonstrated its effectiveness in ensuring access to high-quality premixes, therefore enabling the success of various fortification programs.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yuliya Rodionova

Purpose This paper aims to analyze conflict resolution practice in public procurement. The specific feature of this sphere is the presence of the state and the resulting differences in assessing the chances of protecting one’s interests in court, as well as the effectiveness of judicial conflict resolution mechanisms. Design/methodology/approach This paper is based on the findings of a large-scale survey of suppliers conducted in 2017. To identify the characteristics of suppliers that use different conflict resolution mechanisms, probit-models were evaluated. For robustness check, combined mechanisms for resolving conflict situations were also considered and multi-nomial logistic regression was used. Findings The survey results showed that the majority of suppliers prefer to resolve conflicts in public procurement using an out-of-court negotiation with procurers while only 31% of respondents resort to judicial proceedings. At the same time, suppliers potentially involved in informal relations with procurers, are less likely to go to court and less often use negotiations. Practical implications The results of the study can be used as a justification for the development of a regulatory and organizational framework for the use of negotiations, mediation, arbitration and other alternate methods of conflict resolution in public procurement. Originality/value This paper makes an important contribution to the conflict-handling strategies of businesses and government by presenting for the first time a quantitative assessment of the prevalence of mechanisms for resolving conflicts in public procurement and factors influencing the choice of a conflict resolution mechanism.


2020 ◽  
Vol 14 (6) ◽  
pp. 1351-1380
Author(s):  
Sakthivel V.P. ◽  
Suman M. ◽  
Sathya P.D.

Purpose Economic load dispatch (ELD) is one of the crucial optimization problems in power system planning and operation. The ELD problem with valve point loading (VPL) and multi-fuel options (MFO) is defined as a non-smooth and non-convex optimization problem with equality and inequality constraints, which obliges an efficient heuristic strategy to be addressed. The purpose of this study is to present a new and powerful heuristic optimization technique (HOT) named as squirrel search algorithm (SSA) to solve non-convex ELD problems of large-scale power plants. Design/methodology/approach The suggested SSA approach is aimed to minimize the total fuel cost consumption of power plant considering their generation values as decision variables while satisfying the problem constraints. It confers a solution to the ELD issue by anchoring with foraging behavior of squirrels based on the dynamic jumping and gliding strategies. Furthermore, a heuristic approach and selection rules are used in SSA to handle the constraints appropriately. Findings Empirical results authenticate the superior performance of SSA technique by validating on four different large-scale systems. Comparing SSA with other HOTs, numerical results depict its proficiencies with high-qualitative solution and by its excellent computational efficiency to solve the ELD problems with non-smooth fuel cost function addressing the VPL and MFO. Moreover, the non-parametric tests prove the robustness and efficacy of the suggested SSA and demonstrate that it can be used as a competent optimizer for solving the real-world large-scale non-convex ELD problems. Practical implications This study has compared various HOTs to determine optimal generation scheduling for large-scale ELD problems. Consequently, its comparative analysis will be beneficial to power engineers for accurate generation planning. Originality/value To the best of the authors’ knowledge, this manuscript is the first research work of using SSA approach for solving ELD problems. Consequently, the solution to this problem configures the key contribution of this paper.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Darush Yazdanfar ◽  
Peter Öhman

PurposeThe main purpose of this study is to describe and analyse the relationship between the 2008–2009 global financial crisis and small and medium-sized enterprises' cost of debt capital.Design/methodology/approachStatistical methods, including multiple OLS and dynamic panel data, were used to analyse a longitudinal cross-sectional panel dataset of 3865 Swedish SMEs operating in five industry sectors over the 2008–2015 period.FindingsThe results suggest that the cost of debt was influenced by the financial crisis and another macroeconomic factor, i.e. the interbank interest rate, and by firm-specific factors such as firm size and lagged cost of debt.Originality/valueTo the authors' best knowledge, this is one of few studies to examine the cost of debt among SMEs during the crisis and post-crisis periods using data from a large-scale, longitudinal, cross-sectional database.


2018 ◽  
Vol 18 (1) ◽  
pp. 68-87
Author(s):  
Andrei Yakovlev ◽  
Olga Balaeva ◽  
Andrey Tkachenko

Purpose This paper aims to measure the cost of procurement because public procurement procedures prescribed by legislation not only enhance transparency and competition but also entail certain transaction costs for both customers and suppliers. Design/methodology/approach These costs are important to the efficiency of the procurement system. However, very few previous studies have focused on estimating procurement costs. This paper proposes a methodology for public procurement cost evaluation. Findings This paper shows how procurement costs can be calculated using a formalized survey of public customers. This methodology was tested with a representative group of public customers operating in one region of the Russian Federation. Originality/value The authors formulate the policy implications of this paper, as they relate to the improvement of public procurement regulations and argue that this methodological approach can be applied in other developing and transitioning economies.


2019 ◽  
Vol 122 ◽  
pp. 02004 ◽  
Author(s):  
Javier Menéndez ◽  
Jorge Loredo

In 2017, electricity generation from renewable sources contributed more than one quarter (30.7%) to total EU-28 gross electricity consumption. Wind power is for the first time the most important source, followed closely by hydro power. The growth in electricity from photovoltaic energy has been dramatic, rising from just 3.8 TWh in 2007, reaching a level of 119.5 TWh in 2017. Over this period, the contribution of photovoltaic energy to all electricity generated in the EU-28 from renewable energy sources increased from 0.7% to 12.3%. During this period the investment cost of a photovoltaic power plant has decreased considerably. Fundamentally, the cost of solar panels and inverters has decreased by more than 50%. The solar photovoltaic energy potential depends on two parameters: global solar irradiation and photovoltaic panel efficiency. The average solar irradiation in Spain is 1,600 kWh m-2. This paper analyzes the economic feasibility of developing large scale solar photovoltaic power plants in Spain. Equivalent hours between 800-1,800 h year-1 and output power between 100-400 MW have been considered. The profitability analysis has been carried out considering different prices of the electricity produced in the daily market (50-60 € MWh-1). Net Present Value (NPV) and Internal Rate of Return (IRR) were estimated for all scenarios analyzed. A solar PV power plant with 400 MW of power and 1,800 h year-1, reaches a NPV of 196 M€ and the IRR is 11.01%.


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