An Examination of the Relationship Between Risk Allocation and Project Success on PPP Projects Through Good Project Governance Assessment Case Studies

One of the key factors that have significant and positive influence on economic growth, especially in the developing countries, is infrastructure development (ADB, 1996).
However, infrastructure development requires massive capital investments because most infrastructure projects are large in size and have a high level of complexity (Grimsey & Lewis, 2002). Due to the capital-intensive nature of infrastructure projects, most developing countries do not have the required amount of capital to develop the necessary infrastructure on their own.

Without the required capital, these nations would not be able to properly develop their infrastructure sector, and without these developments their economic condition could suffer. Therefore, in order to keep pace with the economic growth and the increasing demand from the ever-growing population, the private sector participation was introduced with the intention to assist the government of these developing countries by providing additional capital investment to finance the infrastructure sector development (Walker & Smith, 1995).

However, the private participation in infrastructure in the East Asia and Pacific region is not regarded as a challenger or rival, instead it is utilized to complement the investment made by government agencies and/or state-owned enterprises. As a result of this approach, private participation is not utilized to increase the efficiency of the existing enterprises but rather to build new assets through Greenfield projects (World Bank, 2002). A Greenfield project is a project where a particular private entity or a public-private joint venture builds and operates a new facility for a period of time, which has been determined previously in the project contract, and the facility itself may be returned to the public sector at the end of the concession period (Beery & Crow, 2003). These projects can be broken down into several sub-classes, such as buildlease-own, build-own-transfer, build-own-operate-transfer, build-own-operate, build-operate-transfer, etc. However, the build-operate-transfer (BOT) approach is widely accepted as the preferred form of infrastructure financing, not only in Asia but also in many countries around the world (Lombardo, 1999).

Private sector participation had actually existed as early as the 17th century (Walker & Smith, 1995); however, there are currently still a lot of projects with private participation that have failed. There are several things that could cause these types of projects to fail and they are mostly due to the following reasons (Kumaraswany & Zhang, 2001):
1. Poor arrangement and coordination between government agencies in packaging the projects.
2. Insufficient legal arrangements.
3. Lack of coordination between private and public sectors.
4. The unwillingness of the host government to provide guarantees against the risks originating from the unstable economical and political environment.

The results of previous studies on risk allocation and project success is still insufficient because they have not been able to assess whether or not the risks have been properly allocated, which party actually has the ability and willingness to accept the consequences of these risks and what needs to be done to achieve proper risk allocation. Therefore, there is a need to develop a guideline that can help assess the ability and willingness of the parties that are involved in these kinds of projects to help achieve proper risk allocation and ultimately project success.

Mr. Martinus P. Abednego made a case study on PPP as his dissertation thesis for his Ph. D. degree. The main objective of his research is to assess the relationships between risk allocation and project success by developing a common ground concept of proper risk allocation and utilize its result as the foundation to produce a guideline that can help determine proper risk allocation arrangement at the project initiation stage as well as perform as a control system for the project and its participants along the concession period of a tollway project developed under PPP procurement system. From his main objective, several sub-objectives were further elaborated as follows:
1. To identify the project risks in each stage of project development based on the perceptions of the public sector (government agencies) and private sectors (concessionaire and contractors).
2. To identify the critical success factors that are significant for project success based on the goals and objectives of the public and private sectors.
3. To investigate the risk allocation arrangements used by the public and private sectors.
4. To investigate the influence of risk allocation arrangements on project success.

Moreover, the expected outcomes from his research are:
􀀁 An improved theory of relationship between risk allocation and project success, especially in tollway projects that are developed under PPP procurement system.
􀀁 A conceptual framework of good project governance (GPG) for assessing proper risk allocation so that it may enhance the project performance thus achieving an overall project success.

In his overall conclusions, he cited that Public-Private Partnership can be defined in many ways depending on which perspective one chooses. Regardless of differences in perspective, all possess similar characteristics (Peters, 1998). These characteristics can be summarized into a general perception of PPP as a form of partnership of at least one public and one private entity in which each entity contributes its key resource(s) with a willingness to accept the consequences that are associated with the responsibilities. Accordingly, a lot of advantages can be obtained from its implementation, especially in the development of public infrastructure. One of the main advantages is in terms of project financing. Unfortunately what generally happens is the exact opposite, especially when it is put into practice in countries such as Indonesia, Thailand and Vietnam that has less or no experience regarding the approach. The common misconception of the PPP procurement system is that the government as the owner of the project has more authority in the partnership, thus considered as a justification for being superior towards the other stakeholders.

Additionally, the general approach in dealing with the consequences of the risks that occur in projects developed under this system is through problem solving rather than prevention. As a result, the private sector has no choice but to accept these consequences for most of the times even though it does not have the required resources and experience to manage the unanticipated losses. When such situation continues, the possibility of projects experiencing further problems in the future will be greater - making it even more difficult to achieve success, both in the short-term and the long-term. Unfortunately, the majority of stakeholders do not realize that projects developed under this system would have to deal with short-term issues as well as long-term issues.

Mr. Abednego’s research provides an alternative point of view in observing PPP projects by pointing out that these projects are not only confronted with project management problems but also they have project governance concerns. Good Project Governance concept was developed in an effort to ensure the achievement of long-term project success. It has the characteristics of: 1) Making the right decision at the right time; 2) Ensuring contract fairness; 3) Information transparency; 4) Responsiveness; 5) Continuous project control and monitoring; 6) Equality; 7) Effectiveness and efficiency and 8) Accountability (Abednego & Ogunlana, 2006). Four core principles of GPG were established from this to help assess the relationship between risk allocation and project success in each of the case studies. These core principles are fairness, transparency, accountability and sustainability. Each of these principles was further devolved into subcomponents and each subcomponent into key analytical issues, which are then used to assess whether or not risks have been properly allocated and to judge how it affects project success.

Mr. Abednego has several significant conclusions made from his research and each of them is briefly described in the following sections.

1. Perceptions on risk and its allocation - The result of the analysis shows that the government has a clearly different perception compared to the private sector with regards to what is considered as potential risk. In all of the case studies, the governments tend to be more concerned about the problems that may occur during the construction stage of the project. On the other hand, the private sectors are more concerned about the lack of commitment and support from the government that shows in the existing regulations, laws and policies that tend to be discriminatory and insufficient in providing the necessary protection for private investments. This shows that the private sector is more concerned about the source of the problem rather than the actual problem itself because of the belief that problems can be prevented if necessary improvements are made towards the source. Although the private sector is more than willing to be responsible for the consequences of decisions and actions, however, they also expect the government to accept its own share of responsibilities, starting by honoring agreements and providing the necessary guarantees for the private sector, this condition most of the time if they want to be involved in such projects. This puts them in an inferior position relative to the government and eventually prevents project risks from being allocated properly.

2. Perceptions on project success - the following are the significant success factors that were identified from the case studies:
􀀁 Ability to carry out negotiations
􀀁 Accurate estimation (traffic demand & construction cost)
􀀁 Advance risk management system
􀀁 Availability of the required resources
􀀁 Communication method
􀀁 Compliance on agreement/contract
􀀁 Continuous project monitoring and control
􀀁 Attractive investment environment/condition
􀀁 Non-discriminative and non-ambiguous agreement/contract
􀀁 Effective project management
􀀁 Equality of rights and responsibilities among stakeholders
􀀁 Experience
􀀁 Fair compensation policy
􀀁 Fair tendering process
􀀁 Financial achievement
􀀁 Functionality
􀀁 Good contractor/concessionaire selection system
􀀁 Good coordination
􀀁 Good managerial capabilities
􀀁 Government guarantee
􀀁 Government support
􀀁 Improved laws/regulations related to PPP procurement system
􀀁 Information dissemination
􀀁 Market/demand oriented
􀀁 Minimize government interference
􀀁 Minimize land acquisition problem
􀀁 Less political pressure
􀀁 On-time project completion
􀀁 Professionalism
􀀁 Project quality achievement
􀀁 Proper infrastructure development planning
􀀁 Proper project financing strategy
􀀁 Public participation
􀀁 Reasonable payback structure
􀀁 Sufficient time to complete project engineering design
􀀁 Trust

There is a lack of knowledge with respect to the unique characteristics of projects that are developed under the PPP scheme. Most stakeholders do not realize that this kind of projects have governance concerns in addition to management concerns. Consequently, PPP projects are still managed like regular construction projects that are considered to be successful as long as they manage to deal with the short-term issues. Unfortunately, without acknowledging and understanding the importance of addressing the long-term issues, the overall success of PPP projects will be affected.

3. Assessment based on the fairness principle - The main issue discovered from the case studies that prevent the risks to be allocated properly and creating unfair conditions is government’s unwillingness to provide the necessary support and guarantees that would protect private sector investments. This condition is worsened by the ambiguity in the agreements between the government and private sector, and also by the constant interference by the government during the whole course of the project. As a result, the private sector was not able to properly identify the project risks, causing them to involuntarily assume the consequences that were not actually theirs. This would negatively affect the private sector’s revenue in the long run and eventually jeopardize the overall success of projects.

4. Assessment based on the transparency principle - Information dissemination is often a problem in PPP projects. Instead of being shared, it is often obscured; resulting in misperception and misinformation in the project. Unfortunately, this condition is often exploited by the government for fear that the information may be used by the private sector to make claims. Adding to the fact that the existing information management system is insufficient and still requires further improvements, these circumstances prevented the private sector from developing accurate plans and make better preparations. In addition, the government had not also been able or willing to make reasonable adjustments on the project’s financing strategy as previously agreed. Due to this lack of information and financial transparency, conflicts and disputes are inevitable, causing additional problems.

5. Assessment based on the accountability principle

The government and the private sector often overlooked the end-users of the infrastructure as well as its surrounding communities in the process of developing projects. Aside from the Don Muang Tollway project, the projects in Indonesia and Vietnam did not involve any public hearings. As such, the people were given no chance to raise their concerns or even offer suggestions for the project, which prevented them from participating and contributing directly to the project. Regarding the quality issue, most stakeholders refer to it in terms of the physical condition of the infrastructure whereas it should also include the management value and this, unfortunately, is the real situation. Unless the public is given more opportunity to be involved in the development process of projects and quality, both physical and managerial, is improved, the government is (here considered to be) accountable for the negative consequences that it may cause.

6. Assessment based on the sustainability principle

Lack of coordination between government agencies and also between the government and the private sector has prevented the stakeholders of PPP projects from sustaining their partnership in the long run. Consequently, this would affect project performance. For example, lack of coordination would result in inappropriate information dissemination creating difficulties to produce accurate estimation in terms of project cost. The latter situation would then further affect the development of a suitable project financing strategy and payback structure. Ultimately, disputes are inevitable and the sustainability of the project is vulnerable.

7. Overall achievement in terms of Good Project Governance

Based on the assessments that have been made using the four core principles of GPG, the risks in the three case studies were still allocated improperly. This condition influenced the performance of the projects, not only during the initiation and construction stages but also for throughout whole concession period. Consequently, it prevented the projects from achieving overall success. Therefore, these projects cannot be considered to have good project governance because they failed to deal with most of the issues that have long-term implications on the projects, which are mainly caused by improper risk allocation.

His thesis abstract is copied and posted.

Abstract
Studies have shown that there are increasing trends of using Public-Private Partnership (PPP) procurement system in developing countries, including the Southeast Asia countries. In addition to this, the concept of good governance is also becoming a more perceived issue, especially in state-owned enterprises. With such development in the construction industry, it is important to understand what would be the best approach to govern (manage) a construction project, especially public infrastructure projects under PPP procurement system such as tollway projects, so that it may increase the project’s level of success.

Proper risk allocation is considered as one of the critical success factors to enhance the performance of PPP projects. However, parties that are involved in a PPP project typically have different perception of risks, risk allocation strategy as well as project success. Moreover, PPP projects are generally challenged with both project management problems, which require day-to-day supervision (short-term) as well as partnership problems that require more of a strategic approach (long-term). Due to this unique condition, PPP projects can be considered to have governance concerns in addition to management concerns because it deals with monitoring and overseeing strategic direction as well as strategic decision-making (Mueller, 1981).

This research is conducted to examine the influence of risk allocation towards project success. Since proper risk allocation is considered to be an essential part for attaining good project governance, therefore, it is assumed that the performance level of a project would increase due to the proper allocation thus generating a successful project. A good project governance concept was developed as a result of this research. Its four core principles, fairness, transparency, accountability and sustainability is used to assess the influence of the risk allocation arrangements that were applied towards the project success, especially in the long-term. Three tollway projects from Indonesia, Thailand and Vietnam were selected as case studies for this research. The research discovered that the government clearly has a different perception of risk and proper risk allocation compared to the private sector. However, these two stakeholders still lack the knowledge to the unique characteristics of PPP projects and fail to recognize the fact that this kind of projects has governance concerns in addition to management concerns. As a result of their short-term oriented point of view, the project’s long-term issues were often overlooked, affecting its overall success.

Contract Clauses In EPC Oil And Gas Projects: A Case Study Of The Pearl Development Project

Recently, the oil and gas prices increase day by day which makes difficulties for developing countries like China, India and Vietnam to have a stable economic condition. The demand of oil and gas consumption all over the world is increasing, therefore the services required in developing new offshore facilities for oil and gas exploration also increases.

Developing the facilities for an offshore oil and gas field such as platform, Oil and Gas Companies (hereinafter referred as the Project Company) normally sign an EPC (Engineering, Procurement and Construction) contract with the EPC contractor. For this field of industry, there are only few numbers of EPC Contractors in the Asian South East countries who can execute a full EPC project, therefore the EPC contractor is normally selected and awarded thru the international bidding tender. The major factors for executing an EPC project are the contract clauses which are normally generally stipulated, with unclear understanding and interpretation when having disputes between the contractor and the project company. Therefore, studying the method in developing the effective, simplified and understandable clauses in the EPC contract is necessary. In this context, involved parties will understand and interpret clearly the contract negotiation prior to the EPC contract signing and commencement. The understandable and applicable contract clauses properly will help an EPC project to be executed smoothly and effectively.

In order to minimize the interfaces and risks between the separated contractor and the project company during executing an oil and gas project, the oil and gas companies normally prefer to award and sign an EPC contract with the EPC contractor, however this project delivery method will take a lot of time to make clarification, explanation and get the mutually agreement on the contract clauses between the contractor and the project company. The following problems are normally involved with the EPC contract clauses:
1. Take time to make the clarification and finalization before contract signing;
2. Wrong understanding and interpreting of stipulated clauses in the contract;
3. Conflict between contractor and the project company during project execution.

Mr. Nguyen Van Diep made a case study that focused on the issues related to EPC contract. His study objectives are to (1) study the advantages and disadvantages of EPC contract; (2) study the contract clauses to manage EPC oil and gas project; and (3) state the problems in the contract and propose the effective solutions to resolve the problems.

Mr. Diep outlined below the summary of effective clauses in oil and gas EPC project and lessons learned in the EPC contract and conclusion. He also gave some suggestions in applying the effective clauses that can be carried out to expand the understanding regarding the contracting arrangement that are used in EPC project in the Vietnam Oil and Gas industry.

1. Summary of contract clauses
These clauses are normally defined and given by the Project Company in order to protect the project objectives and the Project Company from any kind of risks that may happen. However from contractor’s point of view, it will be very risky if the Contractor complies with all these clauses without any exception or amendment. Therefore, providing the effective clauses based on the project documents and the Project Company’s interest shall be addressed during the bidding preparation and negotiation.

In summary, the effective clauses are the terms and conditions stipulated in the contract which shall be defined based on the interest and “win-win solution” basis for both the Project Company and the EPC Contractor.

2. Lessons learned in the EPC contract
EPC contract is quite complicated in terms of legal issue, therefore the Project Company and the EPC Contractor shall have enough experiences and knowledge about the nature of project facilities in order to avoid their faults and minimize the risks during contract execution. There are some key elements that the Contractor shall be needed to focus on the following issues below to implement in an EPC contract:
- Incorporate a more thorough requirement of using an earned value system with an objective measurement method. Try to use the Contractor’s standard system to its full extent and make sure it is an objective, not a subjective, measurement.
- Specify the types, formats, and frequency of reports in the contract to set the expectations and to avoid disturbing contractor’s standard practices
- Agree on the monthly percent completion of EPC early and compare them with other past EPC project experiences
- Continue the use of “monthly milestone events” evaluation and payment structure.
- Distinguish documents subject to the project company’s approval turnaround and documents subject to the project company’s review
- Assign the Project Company’s specific equipment and drawing numbers early
- Ask each discipline engineer to write and communicate the hottest items/concerns in their areas of responsibilities in the early stage of the Project
- Promote a proactive planning effort throughout the organization
- Devise a method to facilitate the early detection of potential cost and schedule deviation to minimize surprises
- Use variance analysis to concentrate the management efforts
- Ensure that milestone events and progress curves support and consistency each other
- Clarify the project company’s responsibilities and roles in construction, commissioning and hand-over.
- Identify commissioning system/events early.

For the project company to manage EPC lump sum contract, they also need to understand lump sum contract characteristics from the perspectives of both the contractor and the Project Company. EPC projects offer a mutually beneficial and exciting form of project delivery for both the project company and the contractor. However the EPC contract come many new risks that are often severe, due to the complex nature and high cost frequently associated with this type of project. Understanding the risks and some of the other unique characteristics of EPC contracting is critical to a successful project where both the project company and the contractor obtain the high rewards for the risk.

3. Conclusion for the advantages and disadvantages of EPC Contract
The advantage from the Project Company’s point of view of an EPC contract is that the contractor takes full responsibility in respect of the following:
- Cost of completion if it is a lump sum contract (subject to limited adjustments);
- The time for completion (subject to extensions of time);
- The quality of the design and work and achievement of performance guarantees (subject to any exclusion).

This means that the potential factors for multiple disputes is also avoided. However, the major disadvantage for the Project Company of the EPC contract is that the detailed design is the contractor's prerogative. Accordingly, in an EPC contract, great care needs to be taken that the Project Company specifies and defines the design parameters and deliverables (including consumption of utilities and emissions) so that the Project obtains a project of the required standard. This is usually required more than simply stipulating performance criteria in relation to the output of the project, and will include design-life and maintenance issues.

The results from his study have identified that the advantages and disadvantages of EPC contract as well as description of the application for some major clauses and finding the way how to minimize the risks for the Project by providing the effective amendment in consideration of the EPC Contractor’s point of view and the project objectives expected by the Project Company.

4. Conclusion for the contract clauses to manage EPC oil & gas project
The contract clauses are the most important tool to manage the EPC project. Therefore, the involved parties (i.e. Project Company, EPC Contractor) shall understand and know how to apply this tool effectively to manage the project in term of costly, timely and quality.

The contract clauses will be only effective when these are defined and stipulated in accordance with the project specification, documents and nature of work to be performed. Finally, these clauses also are established and finalized according to the mutually agreement between the Project Company and EPC Contractor.

5. Conclusion for resolving the problems in an EPC contract
The problems always happen in the construction project and it will be very difficult to avoid problems happening to the project; however the problems can be ignored or minimized by understanding clearly about the scope of application for each contract clause in term of legal aspects and project requirement. In addition, these problems can be foreseen and negotiable during the bidding phase prior to finalization of contract documents and these shall be controlled and monitored during all phases of project.

In conclusion, besides the other relationships between Project Company and EPC Contractor, the fair and effective contract clauses stipulated in the contract document are tool to resolve all problems in an EPC contract in term of contractual relationships between Project Company and EPC Contractor.

General Conclusion
In conclusion, the major clauses in the EPC contracts are not the same for all project, these also depend on each project scope of work, complexity, specification and documents, the project company’s requirement and expectation and mostly on the outcome of contract negotiation between the Project Company and the EPC Contractor. Therefore, the meaning and application of major clauses in the EPC contracts shall be different in term of the standard form contract i.e. FIDIC or other organizations as well as in each kind of industry i.e. construction, oil and gas, etc.

His thesis abstract is copied and posted.

ABSTRACT

Nowadays, the EPC contract is very wide applied in oil and gas industry in this Region for developing an oil & gas field project, this EPC contract is as a “fast track” tool to reduce the project duration. In order to execute this kind of contract successfully in term of the benefit for all involved parties, it is necessary to focus on some key factors that shall be affected on the project during execution phase i.e. contract terms and conditions clauses. Therefore, understanding and interpreting the application of term and condition clauses clearly in EPC contract will help the project to be executed and monitored by using the proper manning level in accordance with project specification and the project will be achieved its goals without the minimized disputations and conflicts happening.
This study will also discuss on the advantages and disadvantages of EPC contract from both Contractor and Project Company’s point of view and how to manage the EPC contract in accordance with term and condition clauses stipulated in the signed contract documents; how to resolve problems by understanding the contract clauses. However, the improvement of some major clauses are still needed in order to specify and define clearly the duties and responsibilities as well as obligations of involved parties to minimize the conflicts, interfaces, risks and disputes that can be happened during the project execution phase.

AIT-CV (Hanoi and Ho Chi Minh) August 2009 Intake for CEIM and MPM Field of Studies

The AIT-CV Hanoi branch accepted 13 students for August 2009 semester. Twelve (12) students are now enrolled in Professional Master in Project Management and one (1) MS student for Construction, Engineering and Infrastructure Management.

In AIT-CV Ho Chi Minh City Branch, twenty four (24) students are currently registered; four (4) MS students and one (1) Ph. D. for Construction, Engineering and Infrastructure Management, while nineteen (19) students for Professional Master in Project Management field of study.

Below is the complete list of AIT-CV students.

Hanoi Branch

No. Name Field

1. Mr. Tran Van Trung - MPM
2. Mr. Pham Nhu Dung - MPM
3. Ms. Le Ngoc Diep - MPM
4. Mr. Doan Thai Duong - MPM
5. Mr. Le Nam Binh - MPM
6. Mr. Pham Van Thanh - MPM
7. Mr. Le Van Thu - MPM
8. Mr. Nguyen Trung Kien - MPM
9. Mr. Nguyen Duy Duc Thu - MPM
10. Mr. Dinh Quang Hiep - MPM
11. Mr. Bui Duc Luong - MPM
12. Mr. Vu Van Cao - MPM
13. Ms. Nguyen Phung Hai - CEIM


Ho Chi Minh City Branch

No. Name Field

1. Mr. Nguyen Tuan Tu - CEIM
2. Mr. Bui Duy Khanh - CEIM
3. Mr. Nguyen Quoc Trung - CEIM
4. Mr. Duong Quang Minh - CEIM
5. Mr. Ha Cong Huy - Ph.D – CEIM
6. Mr. Bui Kim Binh - MPM
7. Mr. Nguyen Phan Hoa Binh - MPM
8. Mr. Truong Thai Binh - MPM
9. Mr. Le Minh Đang - MPM
10. Mr. Truong Ngoc Dung - MPM
11. Mr. Nguyen Duy Thien Giang - MPM
12. Ms. Trinh Thi Thu Ha - MPM
13. Mr. Bien Nam Hai - MPM
14. Mr. Vo Si Hoai - MPM
15. Mr. Bui Hai Nam - MPM
16. Mr. Ha Chi Nghia - MPM
17. Mr. Nguyen Van Nhan - MPM
18. Mr. Nguyen Chanh Phuong - MPM
19. Mr. Nguyen Le Thuan - MPM
20. Mr. Le Mien Thuy - MPM
21. Ms. Nguyen Thu Trang - MPM
22. Mr. Nguyen Duc Trong - MPM
23. Mr. Nguyen Quoc Viet - MPM
24. Ms. Nguyen Thi Vui - MPM

Public Private Partnerships for Low Income Housing Development in Cantho City, Vietnam

According to assessment of World Bank (2006), Vietnam has made remarkable progress in GDP and poverty reduction over the past decade. A critical factor in this success is significant government emphasis on investment, particularly in infrastructure. Since 1997, infrastructure investment has highly occupied GDP growth, boosting the economy’s productivity. Vietnam, together with Thailand and China, has been the leading countries in terms of infrastructure investment in East Asian region (ADB et al., 2006a).

As for the future investment, some sector plans and forecasts (transport sector, electricity sector, telecommunications sector, and water and sanitation sector) future annual infrastructure investment assuming to 11.4% of GDP (World Bank, 2006). At provincial level, public private financing schemes have been found to assist in urban development carried out by local government (Kyvelou & Karaiskou, 2006). Provincial governments have more jurisdictions in choosing their own projects within a given budget envelop (ADB et al., 2006b). Some local governments have created specialist government investment funds with significant roles in infrastructure financing.

Private investment in infrastructure at provincial level has been noticeable growth as the result of decentralization policy of central government in recent years. There are a number of projects funded successfully by local governments as Hanoi, Binhduong, Dongnai, and Hochiminh including two main areas privatization of existing assets and green-field investment in new assets.

In Cantho city, there are no actual model BOT, BTO, BT implemented under city’s government up till now. Cantho City has to face with pressing needs in developing infrastructure in general while state budget is limited. Government of Cantho City is seeking for the possible models with participation of private sector to reduce the burden of state budget and offer the housing for employees with affordable price. Therefore, Mr. Tran Quang Ninh made a case study and considered the following problems:

1) Limit of using public private partnership approach at local government level may cause difficulties for infrastructure development;
2) Lack of reference to public private partnerships models applied in other countries to create the efficient delivery infrastructure system;
3) Lack of public private partnerships model is to support as the referential procurement in development low income housing in Cantho city, Vietnam.

Mr. Nihn made a case study which main objectives are to: (1) develop public private partnerships models for low income housing development in Cantho city, Vietnam; (2) evaluate the applicability of developed models, and 3) propose the applicable public private partnerships model and its implementation guidelines for low income housing development in Cantho city, Vietnam.

His study revealed that in the context, the price of land is extremely expensive compared with average income of the majority of the people, which makes housing always bother them and also, a big concern for Vietnamese government now. Three local governments were appointed to implement the pilot projects and only Binhduong province’s project proposal was approved by the Prime Minister.

Public private partnerships approach has been applied for developing infrastructure in Vietnam in recent years. There are many projects implemented successfully under PPP, especially power sector and transport sector. According to experts (ADB, 2005), public private partnership approach has much potential to be applied widely through many fields in Vietnam.

Mr. Nihn proposed 3 PPP Models, its strength and weakness for low income housing in Cantho city. See table below:

And finally, the PPPs structure of applicable model he proposed can seen below:

His thesis abstract is copied and posted.

ABSTRACT

Public private partnerships approach is considered efficient tool for infrastructure development in Vietnam recently. There are many implemented successfully under this approach, especially power sector and transport sector. The objective of this study is to apply the public private partnerships approach into low income housing development in Cantho city, Vietnam. The Vietnam legal framework, existing Public private partnerships models in various countries, and case study in Binhduong are investigated to develop the possible Public private partnerships models. And then, interviews stakeholders are conducted to evaluate applicability of developed models. The study proposes the applicable model to develop low income housing in Cantho city under public private partnerships concept. The proposed model is adequate to the real context of Cantho city. And this model possesses some improvements in comparison with the case study’s model, especially in financial aspect, it reduces around 24% state budget under the same assumptions of case study’s project. The proposed model either satisfies the low income people due to adequate price of service or reduces spending state budget and also uses more efficient subsidies through private participations and an adequate subsidy mechanism. The prominent performances of proposed model are specifically showed in two aspects sources of funds and government. That leads the applicability of proposed model.

Developer’s Investment Decision Making on Real Estate Development:

In Thailand, most of real estate investors depends their decision on the overall economic situation resulting to property development industry downsizing since 2005. This phenomenon directly affects the consumer’s confidence, and has direct coloration with economic situation. While housing demand was reducing gradually, housing supply was increasing at the same time. And some investors therefore could not gain revenues base on their expectation.

For real estate project, it is impossible to make investment decision which aim is to achieve the business goal without understanding the whole process of investment and the factors which influence every state of decision making process.

Ms. Rahongsree Prayongrut made a case study to investigate the investment decision making process of real estate project and to identify the key factors which influence every stage. In order to accomplish these primary objectives, she outlined three sub-objectives which are to (1) develop model of investment decision making process of real estate project and identifying factors which influence investment decision in each stage; (2) investigate the practice of developer’s investment decision making base upon developed model, through finding out significant factors affecting decision making process, and their behaviors in facing fluctuation and alter of factors in investment decision making process for real estate project; and (3) propose recommendations to developers in order to improve practical management decisions by using the model and significant factors.

Her study revealed that the residential property project investment decision is divided into two directions; a) investment decision driven by supply, and b) investment decision driven by demand. Each direction has four main decisions such as location, target group, design and finance. In the investment decision driven by supply, it started with land acquisition while investment decision driven by demand is started with identify target group. Some processes and key influence decision are different between two directions.

Her study also revealed that there are many internal and external factors which induce developer to follow each direction. These are:

1. The reasons for choosing any of investment direction
Generally investment decision making process driven by supply is long process of development and more in land bank strategy. On the other hand, investment decision making process driven by demand is raced against time and several competitors because of attractive existing demand. The developer can choose any investment direction, and the decision will depend on internal factors (investment strategy and financial health) and external factors (land price, economic situation, and property market trend). Land price and property market trend is one of the most important considerations of decision making process.

2. Residential investment decision driven by supply: land acquisition and target group selection.

For the acquisition of land through legal process, the developers should consider several factors such as land price, right of land, accessibility, transportation, the distant form CBD, amenity, facility, infrastructure, government development plan obligation, expropriate, physical feature of land, elevation, physical constrain, and previous building.

For identifying the target group, there are several factors which developers should consider such as housing demand, customer’ confidence, housing stock, demographic, housing supply, housing loan, housing affordability, average income, and government financial and housing policy, competitor’s price, quality and brand royalty for target group consideration.

3. Residential investment decision driven by demand: target group selection, land acquisition, and financial decision. To identify and analyze the target group, the developers are advised to do the following steps:
a) Evaluate the real estate market trend, housing demand and supply to find the existing demand in terms of number, income, characteristic, and affordability
b) Analyze whether the government policy in terms of housing development and finance is supportive or not.
c) Analyze the competitors in terms of their target group and location. The market segmentation is evaluated.

For site selection, the developers must identify where the existing demand and project’s competitors are. They need to evaluate the site in terms of transportation, accessibility, facility and amenity, physical feature and land price, and for the legal requirements, analysis of right of land and other legal title of land.

4. Design: The similar of two investment directions, the investment decision driven by supply and demand. Below are some points for developers to follow:
a) Start with developing detail financial plan and feasibility analysis in terms of cash flow statement, budget, unit price, discount rate, mark-up, break event point, D/E, and capital arrangement. Sensitivity analysis is achieved afterward.
b) Set up the construction cost following financial plan from financial activities,
c) Analyze customer in terms of customers’ needs, lift style and family size and then they identify selling point.
d) Point out the legal and environmental requirement and constrain if any, then carried out the project design and product design subsequently, and
e) Finally, conduct master plan, payment condition, and contract condition with other stakeholders and negotiation.

5. The difference between financial methods. Generally, investment decision making process driven by supply uses long term loan or developer’s equity for land acquisition, contrary to the process driven by demand which uses short term finance for projects.

Her thesis abstract is copied and posted.

ABSTRACT

Currently, economic and financial are varying over the time among increase in business competitors. Therefore, it encourages the higher investment risks especially in real estate industry because of its nature. The study focused on residential investment which is the major part of real estate industry. The study aims to investigate investment decision making process of real estate project and identifying factors which influence investment decision and recommend the effective operational method for making residential investment decisions.

The study uses case study as a research design. The processes begin with factor identification which consists of preliminary factor and verification of the factors. It is the continued with the data collection using the abovementioned factors to design the case study question. Data analysis is conducted toward the evidences using explanation building method in which all the important evidences are revealed and explained.

The result from project case studies indicated, that residential property project investment decision is divided into two directions. There are investment decisions driven by supply and demand. Any of investment direction, there are four main decisions which are location, target group, design and finance. The framework shows the how to choose the investment direction and how each investment direction are performed.

Safety Improvement Programs In An Oil And Gas Construction Company: A Study Of Petrovietnam Technical Services Company (Ptsc Production)

Safety is of prime importance in oil and gas industry, and one of the most important factors that contribute to Petrovietnam success in the past years. The effective application of the Health, Safety and Environment Management System (HSEMS) in all Divisions has been applied in almost oil and gas construction companies operating in Viet Nam. This is a modern approach in domestic oil and gas industry where safety requirements are very strictly controlled with tight supervision mechanism.

However, there are some occupational accidents, which happen, kill and injure many people every year. Therefore, preventing accidents and providing safe working environment to protect employees are very important issues in oil and gas operations in Petrovietnam’s subsidiaries and a safety improvement program can be compulsorily necessary to prevent people from any harm, minimize any damage to property and to the environment during production and business processes.

The purposes of the safety improvement programs are to identify strong and weak issues of the safety management system, and then to give the best solutions for control of all risks to achieve goals “All activities are completed with zero injuries to people and zero damage to equipment, property and environment”.

Although the oil and gas construction companies in Vietnam have already established the health, safety and environment management systems to provide the flexible and integrated approach to manage HSE, risks, and develop HSE programs to meet the requirements of Vietnamese and international standards and laws, but there have been some problems about the safety such as:

a) High rate of accidents occurs at the offshore platforms.
b) Problems with workers participation when working on offshore platform

Mr. Pham Van Tuan made a case study to (1) identify safety improvement programs used in the oil and gas construction company; and (2) discuss and review the effectiveness of the safety improvement programs.

He found out that many oil and gas companies in Vietnam have been applied the successful safety improvement programs for several years now. They considered these useful tools to avoid and mitigate accidents and to improve safety performances that resulting in achieving effective cost control and quality control. They recognize the importance of the safety improvement programs and have responsibilities to identify, assess, prevent and manage all risks and injury to people, damage to property and working environment.

These safety improvement programs establish actions for achieving the objectives and targets, in line with the policy commitment of continuous improvement. When establishing targets, take into considerations of the following:

a) Current legal (comply with the national and international regulations and standards related to health, safety and environment) and regulation requirements.
b) The HSE performances (includes: Site and office).
Mr. Tuan also found out that after implementations the safety improvement programs, there are some achieved results about the safety management such as:
1) All accidents have been reduced.
2) The HSE management system objective is to conduct every trade and service activity with all risks identified and well controlled to achieve its goals.
3) The HSE and risk management roles and responsibilities are allocated, and that accountability for the maintenance and continuous improvement of HSE performance is established in all operations.
4) Eliminating injuries by providing rigorous risk mitigation process including safe systems of work, rectifying, and reporting all actions and conditions, which could lead to an incident.
5) Responsibilities for HSE performance will be visible throughout the organization, with clarity on line management accountability.
6) The HSE management system have provided its units and offices with HSE framework that can be used to manage risk that may arise from the existing projects and future projects.

His thesis abstract is copied and posted.

ABSTRACT

Occupational health and safety is related to a good working environment, which covers terms of employment. The main purposes of the safety performance are to foster and develop safety management programs and promote the working abilities of the employees to prevent any risks, accidents and hazards.

Most companies can give many good reasons why they want to improve their management safety system. A well-designed safety management system can help to reduce injuries and illnesses and prevent risks and hazards. In addition, a good management system can increase efficiency, improve productivity and quality of services.

The occupational health and safety improvement programs are very crucial for any oil and gas construction companies in Vietnam. The programs provide the basis for managing and controlling the occupational health and safety performance and identify the safety problems and methods to improve the occupational health and safety performance in the future.

Project Time and Cost Management in Water Supply Pipeline Construction in Dong Nai Province, Vietnam: A System Dynamics Approach

The primary objectives of any construction projects are to complete the project within the limited period of time, to meet the determined quality based on the standard and specifications, and to keep the project cost under the estimated budget. The concept and practice of project time and cost management in construction industry have been used in recent years in Viet Nam, since at that time, the country had the open-door policy to lure the investment from FDI projects.

It has been proven that, in construction industry especially in water supply pipeline construction, time and cost management played an important role among several construction project management activities. The efficiency of time and cost management can result in the success or failure of construction projects. Hence, it is considered that there is the necessity to develop the model for effective project time and costs management in water supply pipeline construction in Dong Nai province.

Mr. Tran Minh Tung made a case study which objectives are to (1) find out critical factors affecting the project time and cost in water supply pipeline construction project and analyzing the relationship of these factors and thereby enhance understanding of construction delays and cost overruns; (2) develop a generic model based on the factors identified using system dynamic approach; and (3) formulate implementable policies that may aims to reducing project time and costs in water supply pipeline construction project in Dongnai Province, Viet Nam.

He found out that the problem of time delays and cost overrun in the construction industry is a global phenomenon. Project delay and cost overrun have frequently happened in most of construction project and water supply pipeline construction project is not exception. Below are his conclusions and discussions:

1. The critical factors and their interrelationship
By using exploratory research, he found out that there are several critical factors affecting the project cost and time in implementing a water supply pipeline construction project. Project cost and project time completion are significantly influenced by factors in six aspects such as:
a. Labor - by hiring the seasonal laborers, the labor cost can be reduced but the quality and labor productivity will also be affected. However, ‘training’ can enhance the workforce’s productivity; reduce rework and supervisor on site. Besides, ‘Financial difficulties of contractor’ along with ‘late monthly payment’ can negatively influence the ratio of labor turnover which causes laborers shortage.
b. Quality – from this point of view, project cost and time completion rate have related with rework that causing by ‘errors in construction pipeline’. The higher schedule pressure increases, the more ‘errors in construction’ happen. Conversely, the increase of ‘tighter in control and monitoring’ results in ‘error in construction pipeline’ reduction and therefore ‘fault in testing pipeline’ will be increased.
c. Schedule pressure - project cost and time can be influenced by the variance of ‘schedule pressure’, ‘speed up work’ and ‘work remaining’. The increase of ‘speed up’ helps reducing ‘work remaining’ which decreases the project time completion. Also, ‘coordination closely among other Department’ in Dongnai province also helps decreasing ‘the necessary time to consult among these departments’, which can reduce project delay and cost overrun.
d & e. Material and equipment - ‘accuracy material planning design’ helps delivering material on time, saving material and increasing ‘purchasing coordination’ which reduces ‘late delivery of material’. The effectiveness in ‘accuracy material planning’ has positively affected to project time completion. However, ‘late delivery of material’ can happen by the consequence of ‘late payment to suppliers’, ‘financial difficulties of contractors’. In another aspect, the result from simulator shows that ‘qualified subcontractor’ can increase quality of equipment, which reduces rework, leading to accelerate project time completion rate.
f. Safety - project cost and time have the relation with ‘labor productivity’, ‘the rate of labor turnover’, and ‘unsafe act and condition on site’. The higher schedule pressure increases, the more ‘unsafe act and condition’ happen. Conversely ‘safely construction method’ and ‘supervisory effort and monitoring’ help reducing ‘unsafe act and condition’ on site.

2. The system dynamics modeling

It is not difficult for the practitioners to capture the behavior of construction project. The dynamics model will facilitate practitioners to identify the problems related to performance gap by adjusting inputs of exogenous variables with their real scenario. It also makes possible for practitioners to find out the reasonable strategy to implement project in an effective way. Beside, in order to reach the usefulness of system dynamics model, the managers should develop the ability to understand construction project as a whole rather than simply concentrating on the detail of specific issues.

With the aim of setting up the model, the critical factors that have a potential to affect project cost and time in water supply pipeline construction project were identified and analyzed in term of their probable impact on construction process. Then, adopting by system dynamics approach, the generic system dynamics model has been formulated in this study by integrating a number of endogenous and exogenous factors to make dynamic interactions visible.

The generic performance model, when calibrated and tested with data from Nhon Trach water supply project in Dongnai Province, Vietnam, the simulated behavior (base run) of the adopted model has been replicated with the historic behavior (reference mode). This implied that the generic model dynamics performance model can be able to simulate the dynamic of project cost and time during implementing project.

3. Policies for improving

In order to considerably improve project time and cost performance in water supply pipeline construction project, five policies having the most potential were evaluated. The result showed that delay and cost overrun can be reduced by carrying out several important policies during the construction phase, including accuracy design, quality improvement; qualify subcontractors, multi-skilled training and material management.

His thesis abstract is copied and posted.

ABSTRACT

Normally, achieving the project within predetermined time, budget, and quality is the basic purpose of construction project control. Unfortunately, most water supply projects can not be completed within specified time and budget. Most projects showed massive cost and time overruns.

In general, the problem involved with project delays and cost overruns are avoidable. In an attempt to solve these problems, there are various strategies have been applied. Among them, many factors were found as the main source lead to manage time and cost in project efficiently.

This thesis analyzes factors affecting project time and costs in water supply pipeline construction in Dongnai Province, Viet Nam. The qualitative research is conducted to fulfill the objective of the research. Data collection is based on case study in water supply pipeline construction in Dongnai Province. It will be found out from this study that there are a lot of factors affecting project time and costs in water supply pipeline construction. Research objectives is the development of the model involved with the factors affecting project time and costs in water supply pipeline construction project.

In analysis, the model including the factors for reducing project time and cost in water supply pipeline construction projects will be built by using system dynamics modeling. Finally, some strategies deal with project delays and cost overruns are proposed.

Sustainable Construction Development Framework Tourism Industry In Phu Quoc Island In Kien Giang Province Viet Nam

Kien Giang, a province at the Southwest end of Vietnam, is one of the biggest provinces in the Mekong Delta, lies next to the Gulf of Thailand, Although it is located relatively far away from the Economic Centers of Viet Nam, compared to the other provinces, it is close to ASEAN countries such as Thailand, Malaysia, Indonesia, Philippine and Cambodia.

Kien Giang is a province with a large tourism potential with its location and islands compared to other provinces in the Mekong Delta. Kien Giang also has flat lands, islands, sea, mountains, forests, caves, rivers, streams, beaches, primeval forests and many other famous landscapes. Kien Giang has many places of historical interest such as Mui Nai beach, Hang Pagoda, Father and Son islet, Thach Dong (Cavern), Mac Cuu Royal Tomb, Hon Dat, U Minh Forest and especially Phu Quoc Island which are attracting to visitors from inland and abroad.

There are flights from Ho Chi Minh City to Phu Quoc and from Phu Quoc to Rach Gia. These good conditions has enable Phu Quoc develop Trade and Tourism in the short term as well as in the long term.

Ms. Pham Thi Cam Tien made a research study regarding the issues affecting construction development in Phu Quoc Island in order to propose a strategy for the future growth of tourism on the island. Her study objectives are (1) to study the current situation of Phu Quoc Island of Kien Giang Province related with sustainable development in tourism; and (2) to study sustainable construction development factors and framework which are applicable in tourism project, in particularly in Phu Quoc Island.

After conducting her survey and interview, the result of the data analyses revealed several issues related with tourism in Phu Quoc Island that affect on sustainable development. In general, Phu Quoc Island is the potential Tourism Island with many long beach as well as waterfalls along the Island. The number of tourists travelling to Phu Quoc is getting bigger and bigger, thus achieving the sustainable development in tourism. But Phu Quoc Island must follow the ecological development standard. The government as well as the investors should have policy to protect environment and nature on the Island. They should have rules and rewards for protecting the nature and environment in the sustainable development construction project.

The sustainable construction development factors and frame work which are applicable in Bai Sao and Bai Truong tourism project in Phu Quoc Island showed that Bai Truong project, is rather big project which is more concentrated on the specific environment investigation and have orientation sustainable development for the island which is divided and developed in small project following the ecological standard. The construction planning is designed into short term and long term stage and has planned to preserve the forest and coach resources.

On the other hand, Bai Sao Project also follows the sustainable development process such as investigating the environment using local material and protecting the natural atmosphere. Bai Sao is concentrated on architecture development. It tried to design ecological architecture with is familiar with nature and coach. Besides, Bai Sao project is attached special importance to the customers – tourist – with hi-end ecological leisure center.

Ms. Cam proposed some measures for improvements of Local Area Tourism Project and the Roles of the Public and Private Sectors. She suggested that a local area tourism project should be accompanied by a concept or urban design drawing which shows diagrammatically the form, layout and disposition of buildings and their relationship to open spaces and other areas. It is very important that these plans will also form the basis for a set of development control procedures relating to land use and urban design guidelines which also cover urban planning policies and measures. Nevertheless they can contain smaller action plans devoted to tourism, such as the upgrading of the waterfronts of both towns, the preservation of the historical core and creation of activity nodes in Duong Dong. As for the roles of the Public and Private Sectors, both should therefore assume collective responsibilities in realizing a quality environment for tourism on the island.

Her thesis abstract is copied and posted.

ABSTRACT

This thesis was conducted to respond the current situation of the tourism development in Phu Quoc Island – Kien Giang province where tourism is recognize as one major income generator for local people. Many interesting activities have been conducted a long to the beaches of Phu Quoc Island in order to attract tourists. The thesis was studied to identify the environmental impacts of current touris m and to provide recommendations for sustainable tourism development in Phu Quoc Island.

This thesis began with site investigation, interview with key informants. This studies issues affecting construction development in Phu Quoc Island and proposes a str ategy for the future growth of tourism on the island which followed the main objective – to study sustainable development and construction factors and framework which are applicable in tourism project, in particularly in Phu Quoc Island. In order to develop study area, the current issue of environment and developed orientation of Phu Quoc Island were conducted. Finally, the results of the analysis and collected data were include and combined to become basis system of sustainable tourism development in Phu Q uoc Island – Kien Giang province.

Delay Causations in Construction: A Case Study of Pipeline Projects

Delays are perhaps the most common form of construction claims or even disputes. The problem is that, the parties involved in the process could hardly identify the reason and responsibility of each one in the specific task. Delays and claims resulted from the works are not carried out precisely as the contract required. Accordingly, avoiding delays is crucially concerned not only with good practice during the planning and execution of the works but also with the proper operation of the contract machinery.

In the pipeline project, delays also occur. This delay is a serious concern for the owner and the contractor too because the owner needs the exact start-up date and the contractor looks for the effectiveness of the resources and avoiding the punishment. The preparation for the claims, if any, is appreciated.

Mr. Nguyen Anh Dao made a research study with these objectives (1) to identify delay causations in the construction of the pipeline project; (2) to explore the impact of delays on time extension and cost; and (3) to investigate the appropriate strategy to control delays and develop a guideline of information management for delays prevention and control.

Mr. Dao’s conclusions are the following:
1. The delays caused in the construction of pipeline project is the actual delays causation occur in all kind of activities, but mostly in technical and management mistakes. The most important part comes from information, documentation and staff management. The impact from details engineering and purchasing materials are mainly related from the mismanagement of this process.
2 Construction mismanagement resulted in multiple problems that can cascade throughout the work force chain, affecting the schedule and leading to damages to multiple parties, and have direct impact in the delays on time extension and cost.
3. Construction delay analysis represents a very complex task. Thus, construction schedule updating and forecasting can handle the uncertainty associated with quantifying activity delays and their impacts. In these conditions, they could be able to react and take the appropriate corrective measures to avoid and minimize delays.

Mr. Dao’s made several recommendations and guideline for delays prevention and control. These are:
1. The General Contractor (GC) needs calculate careful every parameter, every single work, schedule and estimates the total budget.
2. In EPC contract, details engineering take the key position to the success of the project from the quality, schedule to the total budget. Thus the following recommendations help: choose the excellent engineering company instead of cheapest qualified one, and review or give comments before giving the approval in the details engineering office to make sure that there’s no thing to block the engineering process.
3. The purchasing materials and equipments process is always important, but it’s the main weak point of almost Vietnamese contractor since Vietnamese law defines that the time for an international bid preparation is at least 30 days. And the schedule performance, profit or lost are mostly depend on this process.
4. In large and sophisticate project, the experience of GC is the most important reason for the success of project implementation. The strong finance, technical ability and numerous resources are all needed to well perform project.
5. The project’s success resulted from the finance ability of VSP. Using own money to buy all materials, equipment, to hide subcontractors… and will get back from oils production in future.
6. Main contractor should consider effective strategy in order to manage subcontractors effectively and efficiently. The strategies including procurement scheduling, quality control, cost, and safety will be discussed in this study.
7. The need to choose ways (or channel) to communicate between the service of subcontractors and the site management or inside contractors can help the flow of works run smoothly. And the communication process becomes easier and faster.

His thesis abstract is copied and posted.

ABSTRACT

Construction mismanagement results in multiple problems that can cascade throughout the work force chain, affecting the schedule and leading to damages to multiple parties. Although the problem may start with a single subcontractor, it can result in all contractors feeling some impact to their work.

The actual delays causation occur in all kind of activities, but mostly in technical and management mistakes. The most important part comes from information, documentation and staff management. The impact from details engineering and purchasing materials are mainly related from the mismanagement of this process.

The construction schedule updating and forecasting can handle the uncertainty associated with quantifying activity delays and their impacts. The conditions in the schedule, that they are able to react and take the appropriate corrective measures to avoid and minimize delays.

The construction firms and the contractors need to feel in the same rhythm of their project. Especially in large and sophisticate project, our desire to complete the works on time and within budget is hard to fulfill. We can only achieve this goal if we have the experience, competence staff and numerous resources, strong financial aspects, and most of all we use it reasonable.

A Study of the Hotel Renovation Project Management Process in Thailand

Tourism and hotel industry is the one of the major sectors that plays an important role in the economic development of every country. The tourism and hotel industry also supports the growth of other industries, provided that when the tourism and hotel industry area is developed, the business activities will increase as a whole. Thus, the satisfying performance of the tourism and hotel sector is vital key for the prosper beginning of several other parts of the economy. In Thailand, the tourism and hotel industry is a crucial component which greatly influences the economic growth. Tourism is increasing each year which is the reason why, most hotels in Thailand always renovated their hotel to keep up with the competition, to maintain or increase market share by satisfying the current or potential customers, to upgrade the hotel to a higher category, to comply with the new trends and technology and to maintain image and standard.

But hotel renovation projects are very complicated. The process consists of four fundamental interrelated factors involved therein, which are driver analyses, planning and controlling, implementation, and evaluation (Ahmed Hassanien, 2007).

Ms. Atcharaporn Suwan made a research with these set objectives (1) to investigate major problem and specific obstacles occurring in hotel renovation projects; (2) to investigate the existing practice of hotel renovation project management process from the viewpoints of hotelier, consultant and contractor; and (3) to propose the recommendation to improve the hotel renovation project management process.

According to her data analysis, most of external parties that comprise of consultant and contractors have agreed that the two main obstacles of hotel renovation project are lack of money from the owner. This is because some case studies had to set the unrealistic budget and already the budget is fixed from the owner at the first tendering process. Moreover the budget was limited since over budget from the mock up room at the first stage.

Another result of her data analysis is that most of internal party has agrees that the two main obstacles of hotel renovation project is time limitation. The hotelier would like to finish renovation work before high season period in order to gain more revenue during that time and doesn’t want to disturbed their customer. Therefore the period of renovation work was limited base on the traveling season.

Her thesis abstract is copied and posted.

ABSTRACT

Tourism and hotel industry is one major earning of Thailand’s economy, as well as, tourism satisfactions of hotel play the important role among hotel market. Increasing of tourism in each year will affected hotel industry. Therefore most of hotels in Thailand always renovated their hotel for various reasons. However, according to the nature of renovation project will often be subject to a number of diverse constraints. Some may be of a physical and dimensional nature; others are imposed by design considerations. There are various considerations that arise from the original construction. Moreover renovating the hotel and maintaining hotel activities, problems in managing the scope of renovation project and complicated hotel renovation process have been considered as well. These aspects of the hotel renovation process are not well understood and there are a small number of papers that analyze renovation behavior in Thailand.

In order to understand the hotel renovation process, therefore the objectives of this research are established to 1) investigate major problem and specific obstacles occurring in hotel renovation projects, 2) investigate the existing practice of hotel renovation project management process from the viewpoints of hotelier, consultant and contractor and 3) propose the recommendation to improve the hotel renovation project management process.

The data was collected from interview survey in three large scale hotel renovation project of the major destination of Thailand such as Bangkok and Chiangmai. The interviewee has been separated in to two group of each project. First group is internal party that comprise of hotelier, general manager and chief engineer. Second group is external party that comprise of consultant and contractor. The findings were already explained in detail and recommendations for improvement were propose in this study.

Owner’s Project Scope Development for Seaport Project – A Case Study of Sao Mai Ben Dinh Project in Vietnam

Project planning as a back bone of the project management places an important role in any project, especially for Seaport building area. A project is considered successful if it is finished in time, within budget and satisfied owner’s requirements. There are merely two phases of any project such as project plan and project control. The project plan plays the most important role and affect to whole project, planning require a deep study from owner, managers, specialist and many outside professors.

An owner’s inadequate project planning may cause project delay and cost over-budget as well as unpredicted risks. But what is the adequate project planning and how does the owner know on what is the right ways to make plan? Specially, Seaport building which affects very large area: economic, social, politic, etc. Project planning before building is very important.

Mr. Tran Duc Hanh made a research to develop a guideline for project owner to build up project scope to ensure the completion of projects. And to investigate owner’s project scope development to construct Sao Mai Ben Dinh port building project. His specific objectives were to (1) determine the critical project scope development that the owner should attempt in planning of whole project; and (2) investigate a case study that includes an owner’s project scope development plan to construct Sao Mai Ben Dinh port building project.

Based on his research, he proposed four general scopes of planning from owner’s point of view and applied to real case of Sao Mai Ben Dinh project. These are:

1. A general schedule for planning project from owner’s point of view is established.

2. Applying the ideal for real case of Sao Mai Ben Dinh project, at this stage a project charter is defined to determine the purposes and objectives of the owners.

3. A feasibility study is performed and then the risk plan and economic analyses are established. Based on these, a master plan of project is made.

4. An analysis on the result of the plan show that the project is well planning and project bring high advantage to owner.

His thesis abstract is copied and posted.

ABSTRACT

This research proposed a general scope for planning of seaport project, at this point of view we developed a general requirement for plan and some special characteristics of seaport development which owner should pay more attention to. A real case of seaport project, Sao Mai Ben Dinh Project, is established to present the applying of study in real. Most of the important area of seaport project scope is figured out in this research. Base on these, owner has a general view about his project and which part he should pay more attention to in order to make the project success.

Quality Management System For Supervising Consultants For Managing Performance Of Highway Contractors In Vietnam

Construction quality is a critical factor in determining project acceptance and resultant contractual payment levels. Participants in the construction industry have become notably conscious of the role of quality as an essential means to achieve client satisfaction and gain a competitive advantage. Acceptable quality levels in construction have long been a problem to attain on time and within budget in a highly dynamic, complex, and competitive environment. With inefficient or nonexistent quality management procedures, significant expenditures of time, money, and resources are wasted on construction projects (Rounds and Chi, 1985).

Over the past several years, the construction industry has expanded very fast in Vietnam. The construction industry mainly focuses on profit. Due to intensive competition, customer’s requirements are overlooked. It is crucial to the industry to attend to quality and service ability. An example is the 2007 Can Tho bridge disaster. It is not only the responsibility of the participants but of the industry as a whole. No matter what the scope of projects, they have to take people into account because construction is for utilization by people.

Mr. Lu Dinh Vu made a case study which main objective is to develop a QMS framework for supervising consultants that can be effectively used to manage the performance of highway contractors in vietnam. In his study, he investigated the construction methods associated with quality control. The quality control framework was prepared based on the vietnamese standard and regulation. This contributes to compiling important standards and regulations directly affecting quality control in construction. In addition, his case study also analyzed the communication process of managing quality which showed the relationship and duties of the participants in the construction project. Each participant in the project has different roles, but the same objective towards construction quality.

Mr. Vu’s findings regarding the problems on implementing quality on project and its solution can be seen on the table below.

His thesis abstract is copied and posted.

ABSTRACT

The study discusses the quality management system of the consultant supervision function as implemented in highway construction projects. This function is shown as an interconnected system that recognizes the main quality system management activities. Documents and records used in these activities are also reviewed. A model for high quality system management is defined, including supervising consultants and contractors.

The model depicts the quality management system responsibilities and roles in a scheme relating construction quality control, quality assurance, and the interface between them. The scheme can be applied to any construction domain and quality management organizational structure. The study advances the understanding of how quality management is performed and engages participants at several management levels.

The main objective of this study is to develop a quality management system framework for supervising consultants that can be effectively used to manage the performance of highway contractors in vietnam.

An exploratory approach by reviewing the available literature to develop a QMS framework for supervising consultants and test the applicability and effectiveness of this QMS framework in a real case study project. The case study project aims to answer following questions:
- Is the QMS framework applicable?
- Is the QMS framework effective?
- What are the problems and obstacles in implementing the QMS framework?

For the QMS framework to work effectively the role of the supervising consultant is very important, QMS framework must be implemented on a step by step basis, including inputàprocessàoutput.

- In case study, the major highway construction works have been presented. They are guidelines for contractors who implemented them to achieve construction quality.
- A case study has been conducted to investigate the building methods associated with quality control. The quality control framework as presented in the report was prepared based on the vietnamese standards and regulations. This contributes to compiling important standards and regulations directly affecting quality control in construction.

Corporate Social Responsibility in Real Estate Construction: A Case Study Of Preuksa Real Estate Public Company Limited

In the past, developer companies usually engaged on CSR depending on management priorities or market drivers such as laws and regulations, and stakeholders. They always make their own strategic choices regarding how they want their image to be in the market. Even though companies know how to develop CSR, they will still face problems such as when should companies be considered as being a socially responsible business, how to put CSR concept into practice, and when should CSR questions be raised, companies are not ready to answer and often lack of information and knowledge (Panapanaan, 2006).

It shows that although companies know their goal and how to promote CSR, it is still difficult to succeed on CSR effects. One of the most important things that can lead companies to fail on their business achievements is how company’s mission, vision, and strategy apply in practice level. These can cause companies to face problem on both internal and external companies caused by owner or director’s decision making.

In order to overcome these problems, Mr. Jirachai Thaewthiang made a study that focused on developing the information for Developer Company to succeed their goals on CSR. His objectives are to (1) determine how developer company succeeds in real estate construction with Corporate Social Responsibility; (2) identify mechanisms and problems faced when developer company conduct business with Corporate Social Responsibility; and (3) propose recommendations to improve the implemented Corporate Social Responsibility.
He found out that generally, the developer company’s objectives are to construct and sell projects to customers. Evidently, this type of business dealing with real estates and construction projects in Thailand is in a highly competitive market and rivalries.

Therefore, there should be some mechanisms that can ensure or, at least, promote the successful housing business. Corporate Social Responsibility (CSR) is a tool that many succeeded developer companies employ in their business conduct. Preuksa Real Estate Public Company Limited applies this concept and prospers in its business.

In Mr. Thaewthiang’s study, he discussed on how company conduct its business on CSR. Five CSR areas are mainly focused for its long term succeeds: customer, community, employee/worker, environmental and subcontractor/supplier area. However, customer area is still the major target area that company focuses for CSR involvement according to market target. Yearly budget generally allocates from yearly target sell for CSR activities. This is the main key that easily brings company conduct business on CSR. Although there is high investment, it can improve company image and value for long term succeed. Finally, there are four easy steps to improve on CSR involvement through these improvement factors: understanding, identification, development, and integration. These steps can easily understand and conduct business on CSR and also how to involve step by step.

His thesis abstract is copied and posted.

ABSTRACT

Generally, the developer company’s objectives are to construct and sell projects to customers. Evidently, this type of business dealing with real estates and construction projects in Thailand is in a highly competitive market and rivalries. Therefore, there should be some mechanisms that can ensure or, at least, promote the successful housing business. Corporate Social Responsibility (CSR) is a tool that many succeeded developer companies employ in their business conduct. Preuksa Real Estate Public Company Limited, for instance, applies this concept and prospers in its business. Accordingly, this study investigates and observes how this particular company implements its CSR in the current project site as well as in its administration.

The purpose of this study is to: 1) determine how developer company succeeds in real estate construction with CSR, 2) to identify mechanisms and problems faced when developer company conduct business with CSR, and 3) to propose recommendations to improve the implemented CSR.

The data was collected in all levels from the top to the bottom levels, which comprise everything from the mission statement to the public interaction of the selected companies by interview, observation, and documentation on how it conducts housing business using CSR. This study’s findings are discussed and analyzed in detail to propose recommendations to improve housing business on Corporate Social Responsibility.

High-End Residential Property Project Development Process: A Case Study of High-End Residential Property Projects In Bangkok

In Thailand’s attractive cities such as Phuket, Pattaya and Samui, most high-end residential property products are developed by foreigners, large real estate companies from Bangkok and by local Thai developers who joint with foreigners for brand credit. All developers have already known this process but the key factors and particular property development process for this market is still ambiguous for local Thai developers.

It is impossible to provide the guideline for local Thai developers in order to promote their competitive potential without understanding the whole process of property development. Ms. Surangkana Trangkanont made a case study to investigate the high-end residential property project development stages to know the key factors of successful project are. Her three sub-objectives are to (1) investigate how the high-end residential property project development process is developed; (2) identify the significant keys in high-end residential property project development process; and (3) propose the high-end residential property project development process and significant keys the high-end residential property project development.

She found out that the project development process is one of the important issues for high-end residential property project. To be competent, the local investors and developers have to scrutinize on how the high-end residential real estate development project process is done. The high-end real estate project development process conducted feasibility study which is related to saleable area, source of fund and term of repayment, project cash in and out flow or project cost and revenue including project return rate. The more details of feasibility study, the more possible successful project is. The database of feasibility study derived from the developer company database or the results of marketing analysis in terms of project concept and absorption rate. If the result of feasibility studies satisfies the developer, the project concept will follow. Project master plan, project landscape, project facilities and amenities including project unit and project unit models are appeared on blueprint. The project management team is only emphasized on construction works and sale. However, the project management team becomes the most important when the project execution and control are run.

Her thesis abstract is copied and posted.

ABSTRACT

Currently, some major cities in Thailand become more attractive to prosperous people both Thais and foreigners. They want to live in there but the native developers fail to meet their needs. This is because the native developers lack of the high-end residential property project development process system. The research; therefore, firstly aims to investigate the high-end residential property project development process. Secondly, it aims to identify the significant keys in high-end residential property project development process.

Finally, the high-end residential property project development process and the significant keys of high end residential property project development are proposed. To be systematic investigation, the theoretical framework is created and become the roadmap of the research including which issues should be concerned. Next, the case study research methodology is conducted in order to comprehensive the high-end residential property project development process.

After that, five high-end residential real estate projects in Bangkok and perimeter are investigated their project development process. Each project development procedure of each project case study is compared to one another by using logic models and cross case synthesis technique in order to examine the project development process and draw the
phenomena respectively. The results of the research show the key parameters, factors and
influences of each project development procedure. Then, the high-end residential property project development process is proposed including the significant issues concerned by developer.

Risk Management In Offshore Platform Installation Projects: A Case Study Of Ptsc Offshore Services

The development of petroleum industry during past years has created bigger demand, bigger market on both size and scale. Vietnam is a nation with enormous oil and gas resources. These opportunities have attracted international oil and gas companies to invest in the oil and gas sector in Vietnam. Production of oil and gas is probably the most demanding aspect of offshore operation. At the end of the day, we have to deliver the project safety, smoothly and profitably. In order to improve quality, safety and commercial issue of an oil and gas project, service companies continue to investment lots of new equipment including multiple offshore support vessel, accommodation barge, heavy crane barge, anchor handling tug and towing tug vessel.

However, in term of safety, technical and commercial aspect, the oil and gas service company now is dealing with some problems in offshore platform installation activities such as heavy investment in offshore platform installation project and the need in a very careful risk management to ensure that the offshore platform installation work can be successful implemented.

Mr. Do Hong Hai made a case study to (1) identify the risk factors in the offshore platform installation project; and (2) conduct a risk management study for offshore platform installation project.

He found out that the offshore platform installation is normally performed by Contractor to ensure that the work is completed successfully before handover to first oil activities and put project into operation stage. Risk factors in offshore platform installation project are Politics, Economic, Health and Safety, Commerce, Environment, Financing, Natural Events, Contract Condition, Software. The Offshore platform installation is one of the very important stages of exploring and exploiting petroleum activities in the continental shelf with much money in total investment.

He also conducted a risk management study for the real offshore platform installation and simulate with the frame work that referred before. The Compression Module installation project in this case study utilized the systematic approach to manage the main risk. The Compression Module project had a very successfulness in risk management and met the expectation of client BP. The involvements of some stakeholders as client, contractors, and subcontractor have very good attitude in the risk management.

His thesis abstract is copied and posted.

ABSTRACT

In the Project management, risk management is a very important sector using particular method to achieve the best practices in the project of company. Risk management is a systematic approach to managing unexpected related to a threat, through a sequence of human activities including: Risk identification, Risk classification, Risk control, Risk monitor, Risk evaluation.
In the organization, there are some ways of risk dealing such as transfers the risk to another party, avoiding the risk, reducing the negative effect of the risk, and accepting some or all of the consequences of a particular risk. Some kind of traditional risk managements are focused on risks stemming from physical or legal causes (e.g. natural disasters or fires, accidents, death and lawsuits).
The purpose of risk management is to reduce different risks. It may refer to numerous types of threats caused by environment, technology, humans, organizations and politics. On the other hand it involves all means available for humans, or in particular, for a risk management entity (person, staff, and organization).

Factors Affecting Project Delivery Time Delays And Cost Overruns Of Project Development At The Royal Irrigation Department Of Thailand

In Thailand, water management is considered as one of the major problems. To solve these problems, the Royal Irrigation Department (RID) under the Ministry of Agriculture and Cooperatives (MOAC) was created. The Royal Irrigation Department construction projects are government projects that provide water resources to the community in Thailand.

Mr. Rathsayam Tiyarathtagarn made a case study to identify the problems related with project time delays and cost overrun in irrigation projects and also to develop a framework for managing irrigation project effectively. His three sub-objectives are (1) to investigate the project life cycle of irrigation project development; (2) to identify specific factors causing time delay and cost overruns for irrigation project development; and (3) to propose recommendations for effective managing the delivery time and cost in the process of irrigation project development.

Mr. Tiyarathtagarn found out that the major factors affecting RID’s project delivery time delays and cost overruns are project approval, land acquisition and asset compensation, design change and change order, increasing of material prices, failure to timely site access and poor planning and management.

His thesis abstract is copied and posted.

ABSTRACT

It is very important for public projects to be completed on time and within budgets. Normally, achieving the project within predetermined time, budget, and quality is the basic purpose of construction project control. Unfortunately, many construction projects at the Royal Irrigation Department can not be delivery within specified time and budget. Many projects show massive cost and time overruns. In cases, the government had to increase project time and cost. In general, the problem involved with project delays and cost overruns are avoidable. In an attempt to solve these problems, there are various strategies have been applied. Among them, many factors were found as the main source lead to manage time and cost in project efficiently.
This study wants to find out the factors causing project delivery time delays and cost overruns of project development at the Royal Irrigation Department construction project.
In order to understand the irrigation construction process, therefore the objectives of this research are established to 1) investigate the project life cycle of irrigation project development, 2) identify specific factors causing time delay and cost overruns for irrigation project development, 3) propose recommendations for effective managing the delivery time and cost in the process of irrigation project development.
The data was collected from interview survey by case study in three large scale projects of RID; PASAK, KAWNOI and NAMKUMN Project. The interviewee has been conducted in the viewpoint only of Royal Irrigation Department. The findings found that the factors pertinent the executive’s role or project sponsor in the conceptual and planning phase and factors pertinent project manager in planning, construction and closing phase. The recommend are the executive’s role need to more attention during conceptual and planning phase and work closely with project manager during construction phase. The project manager should more consider in detail work by using Work Breakdown Structure during planning phase. More controlling and monitoring in construction phase are very important. Every problems, obstacle and lesson learn during construction must be present by project manager in term of summary reports or seminars need to be conducted after project had closed.

A Study of Project Management Personnel and Competence Need For Infrastructure Development In Dongnai

Vietnam economy gains strength everyday. In Hanoi and Ho Chi Minh City, many infrastructures have been built since the country entered WTO. Dongnai Province is also aiming to be economically and socially developed in 2010. Thus this province focuses on the maintenance and development of the infrastructure sector in order to attract foreign investments. As a result, there have been many construction projects for building from 2000 up to this date. However, Dongnai province is now facing problem regarding slow progress and poor quality infrastructures. Therefore, the development of human resources to meet the above target is needed for consideration.

Mr. Truong Vinh Hiep made a case study which primary objective is to survey and to assess adequacy human resources in public infrastructure projects. His two minor objectives are (1) to estimate adequacy project management personnel; and (2) to assess the current competency of the project management individuals, teams, and organizational.

He found out that the project management personnel need one million dollar in order to forecast the number of total construction personnel at three organizations: owner, designer, and contractor in Dongnai province in 2007. In terms of the project management competency level, the individual contractor needs to be a good example, to get the support staff, project sponsor, technical personnel, functional manager, and project manager to manage the scope, time, quality, communication, and human resource. However, the capacity of the project manager is only fair within some areas for instance the cost, risk management, and motivation their staff. Hence, these fields they need improvement in order to meet the high requirement for the projects in the future.

Another conclusion regarding the project management competency is that the individual, team, and organization in the owners and contractors of the large-scale projects are higher than small-scale projects. However there is no significant difference in the individuals, teams, and organizations in the designers between large-scale projects and small-scale projects.

In assessing the project management competence among different projects such as building, road, and water supply system projects using the Kruskal-Wallis test, Mr. Hiep found out that there is a significant difference in project management competence among these projects. This means the capacity of the individual to do their jobs on the projects; cooperation of team members or commitment to complete the project requirement in the team as well as the organization’s support for their workers to execute jobs effectively among buildings, roads, and water supply system projects have seemed difference. While the capacity and ability of the individual to do their works or the cooperation of the team members as well as the organization’s support for their workers to execute jobs effectively between the designer and contractor does seem the same.

His abstract thesis is copied and posted

Abstract
The current competence assessment of the project management personnel in the construction field is necessary for Dongnai province to meet the demand of economy and sociality development to 2010 and 2015. Therefore, this study will provide the information regarding the project management personnel for infrastructure development in Dongnai province. The author observed and interviewed the project managers in the twenty construction projects within three organizations: the owner, designer, and contractor and get the following results:
In term of the project management competency between large-scale projects and small-scale projects, the Mann-Whitney test found that the individual work on the projects, the cooperation of these group members as well as the organization’s support for their worker in the large-scale projects seems to be higher than that of the small-scale projects. When we compare the project management competence among three project types: water supply system, road, and building projects from the Kruskal-Wallis test, there is a significant difference among these project types. But the post-hoc test doesn’t find significant difference in project management competence among these projects. However, when we compare the project management competency among different organizations: the owner, the designer, and the contractor from the Kruskal-Wallis test, there is a significant difference among these organizations and the post-hoc test also finds that the project management competence of the owner is higher than designer. But there isn’t any significant difference in the project management competence between the designer and the contractor.
For this study, the author assessed the current competence of the human resources in the construction field in Dongnai province. And it also provides the data for further research in the future to find the negative cause to affect the project management competence and to setting up the plans to improve these areas which the project management competence level is low as well as find the processes to manage the projects more effective.
Keywords: project management, competence, infrastructure, assessment, organization, personnel.

Construction, Engineering and Infrastructure Management (AIT Thailand) August 2009 Intake

The Construction, Engineering and Infrastructure Management field of study accepted 16 applicants for Masters Program and 1 applicant for Ph. D. for August 2009 semester.


No - Name - Degree - Country

1. Mr.Asmat Nabi Hotaki - Master - Afghanistan
2. Mr. Hout Venghong - Master - Cambodia
3. Mr. Puoy Puthitha - Master - Cambodia
4 . Mr.Timo Juhappeka Myllynen - Special - Finland
5. Ms. Kyawt Phyu Phyu - Master - Myanmar
6. Mr. Kyaw Min Thu - Master - Myanmar
7. Mr. Pye Phyo Moung - Master - Myanmar
8. Mr. Mukesh Khadka - Master - Nepal
9. Mr.Hassan Ashraf - Master - Pakistan
10. Ms. Supatchana Pumpipat - Master - Thailand
11. Mr.Janeyut Naiyarat - Master - Thailand
12. Mr.Wattanachai Tanjedreu - Master - Thailand
13. MissPorntanat Kongsrisawat - Master - Thailand
14. Mr.Thanapon Buaklom - Master - Thailand
15. Mr.Kittawat Sukosi - Certificate to Master - Thailand
16. Ms. Mai Tuyet Vu - Master - Vietnam
17. Mr. Somjiat Sudprasert - Doctor - Thailand

Private Participation In Developing Transportation Infrastructure: Case Study In Ben Tre Province

Vietnam’s economy is growing fast and the transport sector must meet the need of the national economy. Improving efficiency in the transport sector investment will be essential for regional access, integrated economy and efficient freight movement to and from terminals, ports, industrial zones, and for public services. Due to financial incapability for transport infrastructure, Vietnam has had to invite overseas and domestic private sector for improving financing sources. Most transport projects have been invested by the government budget and ODA funds. These sources cannot meet the demand.

Vietnam is facing an urgent need to find new means to finance transport capital investment. Therefore, encouraging private sector participation in the transport sector is critical issues for the government. To execute these issues the government needs to learn experiences in mobilizing private sector from other countries to apply for Vietnam. Vietnam should give up monopoly in some fields and give clearer policies for private sector.

Mr. Pham Hoang Anh made a research study to find the suitable ways to increase the fund supply for development of transportation infrastructure in Vietnam. His 4 objectives are to:

1. Investigate legal environment for PPP transportation infrastructure projects;
2. Investigate the current and future gaps of funding sources in developing transportation infrastructure.
3. Propose PPP models and test the applicability of these proposed PPP models for each kind of transport infrastructure projects.
4. Propose the recommendations for the local government in applying PPP models to fill the future funding gaps for the transportation projects.

He found out that there are 8 laws and legal regulations governed for PPP transportation projects. These complexities discouraged the investors especially foreign to invest. On PPP transportation projects at provincial level, there are 7 government parties participating in the project from the primary ideas to complete project. This process runs slowly and its complexity, these make the process of implementation of PPP transportation projects spend much time.

Based on his survey, he found out that most of developers in transportation projects are state-owned enterprise construction contractors so there is deformation about kind of capital in PPP transportation projects. In the case of Ben Tre province, the capital for transportation development is mainly dependent on allocation of budget (central, provincial and district budget), in which provincial budget contributes 50% in total.

Government budget supply will meet around 37% of total financial demand for transportation development. Between public supply and real demand is a huge financial gap. The role of private sector is very necessary in this situation to fill such the financial gaps. The partnership between public and private sector, private participation will possibly contribute 16% of total necessity investment capital in case of minimum contribution of private sector, around 41% at maximum contribution and 28.5% at average value of contribution.

With minimum private participation, the total obtainment capital is around 53%, and 65.5% for the average value. It reaches 78% of total financial requirement. It means that the Transport Master Plan of Ben Tre province up to 2020 will not be able to fulfill by 2020. The utmost, only 78% of the plan will be accomplished. Therefore, the Transport Master Pan is not feasible.

His thesis abstract is copied and posted.

ABSTRACT

The wave of transportation infrastructure investment has been booming in Vietnam recent years. Meanwhile the government budget is inadequate to meet huge demand for transportation improvement. Private participation is considered as a critical solution to solve this problem, their contribution is going to be expected to share financial burden with government budget in future. Therefore, the study concentrates on main issues of Public-Private-Partnership (PPP) models in order to apply for transportation infrastructure projects and current legal system related to PPP transportation projects. Thirteen PPP transportation projects were analyzed in light of financial and legal issues. An investigation was conducted among transportation sector’s participants including officers, investors, developers, expert and bank’s staff. The case study was conducted in Ben Tre province. The future financial requirement for constructing all future transportation projects in the Transport Master Plan was determined. The PPP models for each kind of transportation projects were proposed to identify private financial contribution to fill a part of financial gap. The study suggests possible solutions to solve difficulties of the government in applying PPPs for transportation development, such as diversification of financial sources, administrative reform, and more.