Corenes theory on the regulating role of the State in
market economy: road traffic infrastructure is public goods of
public sector (According to Pham Van Van and Vu Cuong,
2005) and to develop road traffic infrastructure construction
projects, there must be the State intervention and regulation.
Specifically, the State must maintain investment bridge and
work out policies (tax policy, investment policy, etc.) to attract
and promote the involvement of private economic sector in road
traffic infrastructure construction projects
16 trang |
Chia sẻ: honganh20 | Ngày: 11/03/2022 | Lượt xem: 355 | Lượt tải: 0
Bạn đang xem nội dung tài liệu Tóm tắt Luận án Studying critical success factors for road traffic infrastructure x projects under BOT form in Vietnam, để tải tài liệu về máy bạn click vào nút DOWNLOAD ở trên
1.2.2. Factors related to project implementation capacity
1.2.2.1. Sufficient (comprehensive) legal framework
The legal environment where projects operate often affects
to a great extent willingness of private sector involved in
infrastructure project development cooperation. Cuttaree and
Mandri-Perrott (2010) emphasized that the necessity of a
sufficient and comprehensive legal environment is a necessary
factor to ensure success of PPP projects. Llanto (2008), in the
research on experience of Philippines in using BOT in
developing infrastructure, pointed out that the government
should establish the laws on BOT and institutional framework
applying BOT in infrastructure construction.
Zhang (2005), Li and collaborators (2005a) argued that the
success of public private partnership depends much on whether a
sufficient legal framework is or not (Cheung and Chan, 2009;
Shrestha, 2011; Emanuel, 2014; Yusof and Salami,2013)
9
1.2.2.2. Technically feasible project
An infrastructure construction project that is considered
technically feasible is often evaluated whether necessary
technology and resources (materials and human resources) for
project implementation are available or not (Li and
collaborators, 2005c). Li and collaborators (2005c) viewed that
the success of PPP contract depends on technical feasibility of
the project. Ismail (2013) and Jiaju Yang and collaborators
(2017) also indicated that technical feasibility of projects is an
important factor that determines the success of BOT projects in
China.
1.2.2.3. Appropriate risk allocation among participants
Kwak and collaborators (2009) indicated the outstanding
point of infrastructure construction projects under PPP form is
high level of risk mainly due to long franchise time and
diversification of participants in the partnership. Therefore, a
core principle in PPP implementation is appropriate risk
allocation among participants in order to minimize risks and
control them in a best manner (Efficiency Unit, 2003). In other
words, appropriate risk allocation is one of the factors
determining success of PPP/BOT projects (Li and collaborators,
2005c, Hammami and collaborators, 2006 and Nisar, 2007,
Jiaju Yang and collaborators, 2017).
1.2.2.4. Public - private commitment compliance
According to the US Department of Transport (2007),
public - private commitment compliance by the parties is a
necessary condition to make a PPP project successful. Reijniers
10
(1994), Esther Cheung and collaborators (2012), Ismail (2013)
indicated that public - private commitment compliance is one of
5 critical success factors for PPP/BOT project.
1.2.2.5. Investor’s capacity
Kwak and collaborators (2009), Esther Cheung and
collaborators (2010), Li and collaborators (2005c) pointed out
that the compliance of investor’s capacity with general
objective of PPP project plays an important role in the success
of PPP projects. Many other researchers (Jefferies and
collaborators, 2002; Tiong, 1996; Birnie, 1999, Kwak and
collaborators, 2009) also agreed with such opinions. Recently,
Jiaju Yang and collaborators (2017) showed that strong
development of private groups (investor’s capacity) is one of
the most important factors determining the success of BOT
project in China.
1.2.3. Government’s commitment
1.2.3.1. State support for PPP/BOT projects
State support for the policy for implementing public
infrastructure construction projects under PPP from is important
for the success of such projects (Qiao and collaborators, 2001;
Zhang and collaborators, 1998). Cheung and Chan (2009) found
that in the past, Hong Kong lacked the government support for
private sector in project implementation, which led to delay or
even cancel and according to the US Department of Transport
(2007), the lack of State support for PPP projects may lead to
failure of a project.
11
1.2.3.2. Government guarantee and support
According to Cesar and Ada (2008), to intensify
attraction of PPP projects for private investors, the Government
should provide specific supports and/or franchise to investors in
exploiting the projects in a certain period. Alternative sources
of income and financial opportunities (such as real estate
development along roads, another project in the future, etc.)
will be chances for the Government to make up for private
investors (Abdul-Rashid and collaborators, 2006, Corbett and
Smith, 2006, Li and collaborators, 2005. Nijkamp and
collaborators, 2002, Qiao and collaborators, 2001, Tam and
collaborators, 1994, Tiong, 1996, Zhang, 2005).
Recently, Khalid Almarri and Halim Boussabaine (2017),
Jiaju Yang and collaborators (2017) also showed that
Government guarantee and support is one of the most 5 critical
success factors for PPP/BOT projects.
1.2.4. Factors related to bidding
1.2.4.1. Bidding transparency
Ong'olo (2006) argued that bidding transparency
mentions designing, planning, organizing and carrying out
projects. Previous researches pointed out that bidding
transparency is necessary for minimizing transaction cost and
shortening negotiation time, completing agreement in PPP
project implementation (Corbett and Smith, 2006, Gentry and
Fernandez, 1997, Jefferies and collaborators, 2002, Jefferies,
2006, Li and collaborators, 2005, Qiao and collaborators, 2001,
Zhang, 2005).
12
Babatunde and collaborators (2012) indicated that
bidding transparency and clear public - private decentralization
are critical success factors for PPP projects. In light of this
viewpoint, Alinaitwe and Ayesiga (2013) concluded that
bidding transparency is one of 5 critical success factors for PPP
project in Uganda.
1.2.4.2. Competitive bidding procedures
The success of road traffic infrastructure construction
projects under PPP/BOT form depends much on selecting the
most appropriate private partner for project construction,
operation and exploitation. Miller (2000) suggested that a
competitive and fair bidding process between investors/private
enterprises is a necessary condition for attracting private sector
in implementing PPP/BOT projects. In light of this viewpoint,
Hodges and Dellacha (2007), Meng and collaborators (2011),
Alinaitwe and Ayesiga (2013) showed that competitive bidding
is one of 5 critical success factors for PPP/BOT projects.
1.2.4.3. Good management
The Government plays an important role in developing
and managing PPP projects. Inadequate involvement by the
government or the government’s powerlessness in managing
PPP projects may lead to the failure of projects (Kwak 2002).
Many other authors (Abdul-Rashid and
collaborators,2006; Corbett & Smith 2006; El-Gohary and
collaborators, 2006; Jamali 2004; Kanter 1999; Li and
collaborators. 2005c; Tarn, Li and Chan 1994; Tiong 1999;
Zhang 2005) showed that to make PPP projects successful, the
13
Government should maintain control methods for quality,
progress and capacity of investors and project contractors. On
the other hand, the Government should keep control in implicit
case and be ready to participate and supply services again if
necessary. Therefore, it can be judged that good management is
an important factor for the success of PPP/BOT project (Ismail,
2013; Khan and collaborators, 2008).
1.2.4.4. Capacity of State authority
Ong'olo (2006) said that the most efficient public
management is through a PPP operation unit/center within the
Government to supervise the whole process and operation of
the project completed under PPP form. Cuttaree and Mandri-
Perrott (2010) also suggested establishing professional
organizations or agencies to support, a PPP unit may help to
resolve capacity limits of the Government and contribute to
controlling quality.
Babatunde and collaborators (2012) and Yusof adn
Salami (2013) also supported such argument because their
research outcome pointed that capacity of the State authority is
one of 5 critical success factors for PPP/BOT projects.
1.2.4.5. Social unanimity
According to Li and collaborators (2005c), social
unanimity is an important element in bidding under PPP form.
The lack of social unanimity may lead to public discontent, and
even strikes or riots (Li and collaborators 2005c). Social
unanimity is regarded as a critical success factor for PPP/BOT
projects by some researchers such as Frilet society (1997), Qiao
14
and collaborators (2001). However, the research by Jiaju Yang
and collaborators (2017) disagreed with other researches on this
viewpoint when their research outcome showed that social
unanimity is the least important factor for the success of BOT
projects in China.
1.2.4.6. Clear public - private decentralization
Nelson and Zadek (2000) argued that PPP showed action
cooperation both for public sector and private sector towards
the general success. Therefore, when public sector and private
sector should work together, there should be specific
regulations, purposes, working programs and coordination
between the parties in an open and clear spirit in project
implementation as well as long-term cooperation between two
parties.
In light of such viewpoint, Li and collaborators (2005c)
saw that clear decentralization between public sector and
private sector is an important element for effective bidding,
thereby determining the success of PPP projects.
1.2.4.7. Comprehensive evaluation on cost and benefit
Li and collaborators (2005c) recommended that before
projects proceed with bidding process, the benefits of the
government and the people that are gained when the project is
constructed and operated should be regarded as an evaluation
criterion on the project feasibility. Zhang (2005) and Li and
collaborators (2005a) argued that the success of public - private
partnership focuses on the ‘value for money - VFM’ bidding
strategy.
15
Moralos and Amekudzi (2008) defined VFM as one of
the leading tools for public managers to evaluate the value of
pursuing the project through PPP compared with traditional
bidding. Sarmento (2010), Fitzgerald (2004), VFM can be
distributed through transferring risks, renovating, using greater
assets and integrating synchronous management. The role of
private sector in PPP projects is proved only when the
participation of private sector improves value without extra
costs compared with the form of entire project completion by
the State agency.
1.2.5. Other related factors
1.2.5.1. Adequate franchise time
Franchise time is the one given by the government to
private sector, in which private sector is responsible for
sponsoring, building and operating BOT projects. This is a
common form when the infrastructure leading agency of the
Government sets permissible time of the projects franchised to
private sector and requires the franchisee to bid in terms of fees
and other aspects of projects (Zhang, 2009). Alhumoud and
collaborators (2010) studied the BOT contract implementation
by a local company to sponsor, design, build and operate an
advanced wastewater treatment plant in Sulaibiya in Kuwait.
They realized that it was ultra-filter using costs that lasted
franchise time for 30 years in order to cover costs and bring
about adequate benefits for the contribution by private company
in involvement in BOT projects.
16
1.2.5.2. Support from related objects
According to Li and collaborators (2005c), the support
from related objects emphasized that the attitude of related
parties in PPP projects affects output quality. The interaction
between project participants is an important factor in project
management. Interaction processes include project planning,
communication, supervision and control and organization to
facilitate efficient coordination throughout project life cycle.
Mohsini and Davidson (1992) argued that the conflicts
among organizations in a construction project often exert bad
influences on the project efficiency. Jacobson and Choi (2008)
determined that open communication and trust, working
towards compromise and cooperation, and respect are important
factors to make PPP projects successful. This is supported by
Innes and Booher (2004), who emphasized necessity for
building up trust among related parties of the project and
solving conflicts before they become complicated. The project
success can be ensured if the participants work together as a
group with general objectives (Larson, 1995).
1.2.5.3. Technology transfer
According to Robinson and collaborators (2004), PPP
projects related to long-term cooperation and connection
between the project participants. Therefore, the transfer of
knowledge and knowledge management tools is viewed to some
extent to create sharing and help the parties better understand
one another during project implementation. Therefore, Dahir
(2012) pointed out that the Government should provide
17
technology transfer policies and strategies in BOT agreements
to related parties.
Baba Shehu Waziri and collaborators (2017) attempted to
find out CSF for BOT projects in Nigeria. With 45 factors, the
research group indicated that technology transfer plays the 5th
important role for the success of BOT projects in Nigeria.
However, Jiaju Yang and collaborators (2017) showed
that such factors as harmonious determination of interests of the
parties, technology transfer, technology transfer and social
unanimity are less important for the success of BOT projects in
China.
1.3. Overview of methods applied in researching CSF
for PPP/BOT construction projects
Inheriting overall outcome of Osei-Kyei and Chan
(2015), combined with recent researches on critical success
factors for PPP/BOT construction projects accessible by the
author, the author realizes that, upon studying CFS for
PPP/BOT construction projects, there are 3 main research
methods, namely case study, questionnaire and mixed research.
In particular, most researches using questionnaire method
and mixed research method (survey via questionnaire and
interview, case study) inherit factors included in CSF research
of previous researches and adopt average score ranking
technique, combined analysis by Kendall to indicate order/rank
of critical success factors.
For these very analyses, the thesis will adopt mixed
research method (through questionnaires and in-depth
18
interview) and average score ranking technique, combined
analysis by Kendall to indicate successful factors.
1.4. Theories related to critical success factors for road
traffic infrastructure construction projects under BOT
form
− Corenes theory on the regulating role of the State in
market economy: road traffic infrastructure is public goods of
public sector (According to Pham Van Van and Vu Cuong,
2005) and to develop road traffic infrastructure construction
projects, there must be the State intervention and regulation.
Specifically, the State must maintain investment bridge and
work out policies (tax policy, investment policy, etc.) to attract
and promote the involvement of private economic sector in road
traffic infrastructure construction projects.
− The theory of “participants”: In road traffic
infrastructure construction under BOT form, the participants
include the Government (franchisor), the investor (franchisee),
the Lender (credit issuer) and the public.
− Theory of Public Private partnership )PPP)
1.5. Research gap and research direction of the thesis
From the above contents, the author sees that with
different research approaches, objectives and objects,
researchers indicated that CSF for PPP/BOT projects has
similarities and differences. In Vietnam, there have been no
researches on CSF for road traffic infrastructure construction
projects in Vietnam - This is the research gap and the thesis will
aim at narrowing such gap. The thesis will use the questionnaire
made by Li (2003) to investigate the perception of public sector
19
and private sector on critical success factors for road traffic
infrastructure construction projects under BOT form in
Vietnam.
CHAPTER 2: THEORETICAL BASIS
2.1. Overview of road traffic infrastructure
construction projects
According to the Road Traffic Law (2008), road traffic
infrastructure includes road works, coach stations, parking lots,
stops and other auxiliary works on roads serving traffic and
road safety corridor. Among them, road works are the most
important element. Road works include roads, stops on roads.
Road is the main element in road works. Rodd includes normal
road, overpass, tunnel and road wharf.
Under article 46, the Road Traffic Law (2008), it can be
seen that road traffic infrastructure construction project is
investment and construction, upgrading and improvement of
road traffic infrastructure. Among them, road traffic
infrastructure construction must satisfy road transport plan
approved by competent authorities; observe construction
investment management sequence and other regulations; ensure
road technical level, landscape, environmental protection.
Vietnamese and foreign organizations and individuals are
entitled to invest in building, trading and operating road traffic
infrastructure under the laws.
20
2.2. General theoretical basis on the role of the State for
development and investment of technical infrastructure in
general and road traffic infrastructure in particular of
national economy
• The State serves as the public service supplier
• The State serves as the manager of technical
infrastructure development investment of national
economy
• The State serves as the technical infrastructure developer
and investor of national economy
• The State serves as the controller over technical
infrastructure investment development.
2.3. Role of private economic sector for the development of
road traffic infrastructure
The participation of private economic sector in road
traffic infrastructure development brings about socioeconomic
benefits, contributes resources to the road traffic infrastructure
development, thereby improving operation efficiency of the
State sector in supplying public service, facilitating the
economy.
Generally, private economic sector participates in
developing road traffic infrastructure under some forms: (i)
investment under PPP form; (ii) investment under capital
contribution, share acquisition, purchase of equity capital in the
State-owned enterprises in road traffic infrastructure
construction investment; (iii) investment under business
21
cooperation contract in road traffic infrastructure. In these
forms, investment under PPP form is the most common and
adopted by many countries.
2.4. Public - private partnership in road traffic
infrastructure construction investment project
implementation
Decree No. 63/2018/NĐ-CP on investment under PPP form
provided more specific and clearer stipulations: Investment
under PPP form is a method of investment based on project
contract between the State competent authority and project
investor to build, renovate, operate, trade and manage
infrastructure, provide public services.
At present, in the world, common forms of public private
partnership in projects (including road traffic infrastructure
construction project) are as follows: (i) Service contracts; (ii)
Management contracts; (iii) Lease contracts or sublease
contracts; (iv) Construction - business - transfer (BOT)
agreements or similar agreements; (v) Franchise; (vi) Joint
venture
2.5. Theoretical basis on critical success factors for road
traffic infrastructure construction project under BOT
form
Decree No. 63/2018/NĐ-CP dated 4/5/2018 on investment
under public private partnership stipulated that: BOT contract is
the one signed by and between the State competent authority
and the project investor or enterprise to build infrastructure;
after completing the works, the project investor or enterprise is
22
entitled to trade in the works in a certain time; beyond such
time, the project investor/enterprise transfers such works to the
State competent authority.
Success and advantage of BOT application in these places
were recorded fully. However, not all BOT projects are all
successful. Based on the viewpoint of McCabe (2001), critical
success factor (CFS) is very important for managers to improve
their organization because these factors show them relevant
progress in specific fields. Therefore, the author thinks that the
determination of critical success factor for the countries newly
adopting BOT like Vietnam is necessary and helps to minimize
risks for all related parties when participating in BOT projects.
Critical success factors for road traffic infrastructure
construction project under BOT are understood as some factors
with very important role for the common success of the project.
23
CHAPTER 3: RESEARCH METHOD
3.1 Research design
The research method adopted in the thesis is mixed
research method with qualitative research (desk research, in-
depth interview) and quantitative research (survey through
questionnaire). Based on overall research outcome and the
summary of critical success factors for PPP/BOT projects, the
author realizes that the use of questionnaire (the factors for
evaluating their influence on the success of PPP/BOT projects)
depends much on the objective of research and context of
research. Therefore, the questionnaire form designed by Li
(2003) will be used in this research and the author doesn’t add
any factor to such questionnaire because:
- First, value of the questionnaire designed by Li (2003)
has been acknowledged by many CFS researches of PPP/BOT
projects.
- Second, the thesis is aimed at indicating CFS for road
traffic infrastructure construction project under BOT in
Vietnam through surveying perception of the respondents. This
satisfies the questionnaire designed by Li (2003) and has been
adopted by many researches with similar objective.
- Third, by adopting the questionnaire designed by Li
(2003), the author can compare research outcome in Vietnam
with that in the countries with similarities such as Malaysia,
China, Hong Kong and successful countries in adopting
PPP/BOT such as the UK and Australia.
24
Table 3.1. Critical success factors adopted in the
questionnaire
CSF Success factors
CSF 1 Stable macroeconomic conditions
CSF 2 Sufficient (comprehensive) legal framework
CSF 3 Good (healthy) economic policy
CSF 4 Loan mobilization capacity from financial market
CSF 5 Harmonious determination of benefits of the parties
CSF 6 Appropriate risk allocation among participants
CSF 7 Public - private commitment compliance
CSF 8 Investor’s capacity
CSF 9 Good management
CSF 10 Technically feasible project
CSF 11 Clear public - private decentralization
CSF 12 The State support for PPP/BOT project implementation policy
CSF 13 Social unanimity
CSF 14 Capacity of the State authority
CSF 15 Competitive bidding
CSF 16 Bidding transparency
CSF 17 Government guarantee and support
CSF 18 Comprehensive assessment on cost and benefit
Source: Li (2003)
25
3.2. Research sample
Research sample means the individuals involved in
managing and implementing road traffic infrastructure
construction projects under BOT in Vietnam and these
individuals have sufficient experience (who have been
involved) in road traffic infrastructure construction projects
under BOT form in Vietnam. Therefore, it will be adequate and
reliable when the respondents are those who have experience
and deep knowledge through cooperation/participation in BOT
projects and those who have standing in project areas. For this
very reason, intentional sampling method is more suitable in
this research and scope of 94 samples is not big but acceptable
for this research.
3.3. Data collection and analysis technique
Data collection is conducted by direct survey method. By
this method, the author collected 52 valid questionnaires from
the State authority staff and 39 valid questionnaires from
private staff.
By entering data on Excel, the author entered 2 groups of
research objects separately, each into 1 sheet, and then matches
2 sets of data in 1 sheet to gain a general data set for analysis
and putting forth research outcomes.
Through summarizing documents, the author realizes that,
with this research on critical success factors for road traffic
infrastructure construction projects in Vietnam, the author
mainly uses average scor
Các file đính kèm theo tài liệu này:
- tom_tat_luan_an_studying_critical_success_factors_for_road_t.pdf