Lecture 5 Flashcards
With what steps is infra planning and development organised?
- Policy
- Finance ministry, ministry of the interior, ministry of infrastructure and water management
- Rijkswaterstaat and Prorail
- Market (they don’t have equipment and money).
What is meant with the Infrastructure Value Chain?
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.
To create value, resources are needed. Governments involve the market to supply resources. Why do governments want to make the design themselves nowadays?
They want to know something about the design when they talk to all the stakeholders.
What are typical resources needed for infrastructure development?
Money
Materials / people
Skills
Knowledge
Conditions
What are characteristics of the Dutch infrastructure market?
(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.
How can a government structure the marketplace?
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)
What is competition? concurrentie
About being different from competitors in such a way that a client is willing to buy exactly your product.
What is commoditization. Relate your answer to the downward profit cycle.
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)
Explain the differentiation cycle. What is it about?
- 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.
What are contradicting stakes between the government and the market?
Government: perfect competition results in the best societal or citizen value
Market: imperfect competitions may result in highest profits
Explain the different acronyms for working together: E&C, D&C, DBFM, DBFMO
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
Wim discussed a few important trends. Which ones?
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.
What is the difference between contracts and procurement.
Contract = agree ment between two or more parties. A document where the agreements are noted.
Procurement = the process of coming to this agreements.
What does the European Public Procurement Directive rule?
Open European market with equal chances for all interested competitors:
-Equal Chance
-Equal Treatment
-Clearness and Transparency
-Conformity
What kind of procurement procedures are there?
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
What is a Public Private Partnership?
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).
Name (dis)advantages of DBFM.
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
What is the added value of public-private partnering according to Verweij (2023)?
- 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.
Name the three crucial dilemmas in public-private interaction.
How much involvement of the market at what moment in the planning process against how many risks for the market?
Name the different types of resources from Klijn and Koppenjan (2016)
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.
In Finding the right tools for the job a distinction is made between two types of LUTI policy instruments. Which ones?
- 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.
What are PPP’s good for according to Brinkerhoff, D. W. & Brinkerhoff, J. M. (2011)
mobilizing resources gbeyond those available to public sector entities alone
offering solutions to complex problems.
Why do actors choose to partner?
- To enhance efficiency and effectiveness through a reliance on comparative advantages, a
rational division of labor, and resource mobilization - To provide the multi-actor, integrated resources and solutions required by the scope and
nature of the problems being addressed. - 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) - 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
What kinds of PPP’s are there?
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.
