Lecture 5

Question 1

With what steps is infra planning and development organised?

Answer 1

1. Policy
2. Finance ministry, ministry of the interior, ministry of infrastructure and water management
3. Rijkswaterstaat and Prorail
4. Market (they don’t have equipment and money).

Question 2

What is meant with the Infrastructure Value Chain?

Answer 2

In theory planning process is very linear. different steps lead to something. In reality it’s not one decision but multiple decisions. Policy - network development - programmes projects - execution * like a funnel. Every time you take a decision there is a feeling of compromise and that the felling of discussion is gone. This is not true they come back in a new step.

Question 3

To create value, resources are needed. Governments involve the market to supply resources. Why do governments want to make the design themselves nowadays?

Answer 3

They want to know something about the design when they talk to all the stakeholders.

Question 4

What are typical resources needed for infrastructure development?

Answer 4

Money
Materials / people
Skills
Knowledge
Conditions

Question 5

What are characteristics of the Dutch infrastructure market?

Answer 5

(Public) Infrastructure planning and realization has the characteristics of a suppliers market. There are many contractors competing for just a few assignments. The client thus has a lot of power. This leads to low price-offers, acceptance of many risks gby contractors, consortia to spread risks.

Question 6

How can a government structure the marketplace?

Answer 6

Setting the rules (for example procurement rules)

Providing information

Interventions in demand and/or supply:
- Through deliberate market policy
– Creating or augmenting demands
– Subsidies
– Creating (new) market institutions or market sectors
* Risk sharing
* Taxes and fees (user, impact)

Question 7

What is competition? concurrentie

Answer 7

About being different from competitors in such a way that a client is willing to buy exactly your product.

Question 8

What is commoditization. Relate your answer to the downward profit cycle.

Answer 8

When many competitors offer the same product without being different from each other. Goods that have value become simple commodities.

In such cases the customer no longer wants to pay for the prtoduct –> compteitors imitate products and production methods –> profit squeezes further and further (downward profit cycle)

Question 9

Explain the differentiation cycle. What is it about?

Answer 9

• Creating value for your customer. Only works when client wants to pay for it.
• Involve contractors earlier in the project. – period before procurement. Talking with them about risks and values  later real procurement.

Question 10

What are contradicting stakes between the government and the market?

Answer 10

Government: perfect competition results in the best societal or citizen value

Market: imperfect competitions may result in highest profits

Question 11

Explain the different acronyms for working together: E&C, D&C, DBFM, DBFMO

Answer 11

Answer
1. E&C Engineering and COnstruct
2. D&C Design and Construct
3. DBFM Design_Build_Finance_maintain
4. Design_Build_Finance_Maintain_Operate

Question 12

Wim discussed a few important trends. Which ones?

Answer 12

Earlier in the planning process
Integration of phases
Integration of different activities

Bigger contracts in scope and costs
More diverse contracts in terms of tasks
More private responsibility and risks.

Question 13

What is the difference between contracts and procurement.

Answer 13

Contract = agree ment between two or more parties. A document where the agreements are noted.

Procurement = the process of coming to this agreements.

Question 14

What does the European Public Procurement Directive rule?

Answer 14

Open European market with equal chances for all interested competitors:
-Equal Chance
-Equal Treatment
-Clearness and Transparency
-Conformity

Question 15

What kind of procurement procedures are there?

Answer 15

Open procedure:
* any interested party is invited to tender,
* no possibilities for short-listing candidates or contract negotiations

Restricted procedure:
* contract authority shortlists candidates to tender;
* contract negotiations are not allowed

Negotiated procedure:
* no detailed rules on negotiations;
* negotiations only possible after potential contractors have submitted an offer

Competitive dialogue:
* structured negotiations;
* (also) before an offer is submitted

Question 16

What is a Public Private Partnership?

Answer 16

A form of structured cooperation between public and private partners in the planning/construction and/or exploitation of infrastructural facilities in which they share or reallocate risks, costs, benefits, resources and responsibilities (Koppenjan, 2005).

Question 17

Name (dis)advantages of DBFM.

Answer 17

Advantages:
* Strong (financial) quality incentive
* Market consortia can optimize construction and maintenance
* Less public money needed upfront

Disadvantages:
* Budget is fixed over longer period
* Loss of government control over part of the network
* Many restrictions on private involvement apply from plan- and policy making and procurement

Question 18

What is the added value of public-private partnering according to Verweij (2023)?

Answer 18

• DBFM had better time management than D&C. All DBFM met key milestones!
• DBFM had significantly less costs for additional work compared to D&C.
• No significant difference in project quality between DBFM and D&C.
• DBFM and D&C were both low on innovation. DBFM slightly better than D&C.

Question 19

Name the three crucial dilemmas in public-private interaction.

Answer 19

How much involvement of the market at what moment in the planning process against how many risks for the market?

Question 20

Name the different types of resources from Klijn and Koppenjan (2016)

Answer 20

Financial resources: money and budgets

Production resources: sources for the actual realization of solutions, policies and services

Competency resources: juridical authority to make certain decisions (authority over zoning plans)

Knowledge resources: Investigating problems and generating solutions

Legitimacy resources: granting legitimacy to or witholding legtimacy from a decision.

Question 21

In Finding the right tools for the job a distinction is made between two types of LUTI policy instruments. Which ones?

Answer 21

• technical support instruments which aim to provide information to decision makers
• policy instruments which aim to span boundaries between the land use and transport domain and to encourage integration processes throughout the policy process.

Question 22

What are PPP’s good for according to Brinkerhoff, D. W. & Brinkerhoff, J. M. (2011)

Answer 22

mobilizing resources gbeyond those available to public sector entities alone

offering solutions to complex problems.

Question 23

Why do actors choose to partner?

Answer 23

1. To enhance efficiency and effectiveness through a reliance on comparative advantages, a
   rational division of labor, and resource mobilization
2. To provide the multi-actor, integrated resources and solutions required by the scope and
   nature of the problems being addressed.
3. To move from a no-win situation among multiple actors to a compromise and potential winwin
   situation (i.e., in response to collective action problems or the need for conflict
   resolution)
4. To open decision-making processes to promote a broader operationalization of the public
   good → the normative dimension seeks to maximize representation and democratic processes; the pragmatic perspective views this as a means to ensure sustainability

Question 24

What kinds of PPP’s are there?

Answer 24

Policy PPPs: seek to design, advocate for, coordinate, or monitor public policies of various
typesh.

• Service delivery PPPs: engage non-state actors in delivering public services through
  separating the payment for public services from their provision.
• Infrastructure PPPs: bring together governments and the private sector to finance, build, and
  operate infrastructure such as ports, highways, sewage and waste treatment facilities,
  telecommunications, electric power generation.
• Capacity building PPPs: address service delivery needs, but explicitly focus on helping to
  develop the skills, systems, and capabilities that allow those groups or organizations targeted
  for assistance to help themselves.
• Economic development PPPs: cross-sectoral collaborations that promote economic growth
  and poverty reduction.