396
Views
2
CrossRef citations to date
0
Altmetric
Original Articles

An exact optimization approach to the principal-agent problem in infrastructure projects via PPPs

, , &

References

  • Antoniou F , Aretoulis G. 2019. A multi-criteria decision-making support system for choice of method of compensation for highway construction contractors in Greece. Int J Constr Manage. 19(6):492–417.
  • Barker K , Haimes YY. 2009. Assessing uncertainty in extreme events: Applications to risk-based decision making in interdependent infrastructure sectors. Reliab Eng Syst Saf. 94(4):819–829.
  • Biondini F , Frangopol DM. 2018. Life-cycle performance of civil structure and infrastructure systems: Survey. J Struct Eng. 144(1):06017008.
  • Buxbaum JN , Ortiz IN. 2009. Public sector decision making for public-private partnerships. Vol. 391. Washington, D.C.: Transportation Research Board.
  • Castiblanco D. 2011. Managing infrastructure through incentives. Bogotá: Universidad de los Andes.
  • Castiblanco D , Gómez C , Faber M , Sánchez-Silva M , Dueñas-Osorio L. 2012. Organizational issues on decision-making for temporary activities in the context of infrastructure management. In: International Forum on Engineering Decision Making; 6th IFED Forum January 26-29, 2012 ; Lake Louise, Canada.
  • Cecchini M , Ecker J , Kupferschmid M , Leitch R. 2013. Solving nonlinear principal-agent problems using bilevel programming. Eur J Oper Res. 230(2):364–373. http://www.sciencedirect.com/science/article/pii/S0377221713003123.
  • CONPES . 2013. Proyectos Viales bajo el esquema de asociaciones público privadas: Cuarta generación de concesiones viajes (Documento Conpes 3760). Consejo Nacional de Política Económica y Social - Departamento Nacional de Planeación - República de Colombia.
  • Corotis RB. 2009. Societal issues in adopting life-cycle concepts within the political system. Struct Infrastruct Eng. 5(1):59–65. https://doi.org/10.1080/15732470701322867.
  • Cui C , Liu Y , Hope A , Wang J. 2018. Review of studies on the public–private partnerships (ppp) for infrastructure projects. Int J Project Manage. 36(5):773–794.
  • De Palma A , Leruth L , Prunier G. 2012. Towards a principal-agent based typology of risks in public-private partnerships. Reflets et Perspectives de la Vie Économique. LI(2):57–73.
  • Debela GY. 2019. Critical success factors (CSFs) of public–private partnership (PPP) road projects in ethiopia. Int J Constr Manage. 1–12. https://doi.org/10.1080/15623599.2019.1634667.
  • Gama Dessavre D , Ramirez-Marquez JE , Barker K. 2016. Multidimensional approach to complex system resilience analysis. Reliab Eng Syst Saf. 149:34–43. http://www.sciencedirect.com/science/article/pii/S0951832015003610.
  • Thomas JE , Eisenberg DA , Seager TP , Fisher E. 2019. A resilience engineering approach to integrating human and socio-technical system capacities and processes for national infrastructure resilience. J Homeland Secur Emergency Manage. 16(2):1–17.
  • Ellingwood BR , Lee JY. 2016. Life cycle performance goals for civil infrastructure: intergenerational risk-informed decisions. Struct Infrastruct Eng. 12(7):822–829. .
  • Faber MH , Stewart MG. 2003. Risk assessment for civil engineering facilities: critical overview and discussion. Reliab Eng Syst Saf. 80(2):173–184. https://www.sciencedirect.com/science/article/pii/S0951832003000279.
  • Frangopol DM. 2011. Life-cycle performance, management, and optimisation of structural systems under uncertainty: accomplishments and challenges. Struct Infrastruct Eng. 7(6):389–413.
  • Frangopol DM , Furuta H. 2001. Life-cycle cost analysis and design of civil infrastructure systems. Reston, VA, USA: American Society of Civil Engineers. https://ascelibrary.org/doi/abs/101061/9780784405710.
  • Frangopol DM , Kallen M-J , Noortwijk J. M v. 2004. Probabilistic models for life-cycle performance of deteriorating structures: review and future directions. Prog Struct Engng Mater. 6(4):197–212. https://onlinelibrary.wiley.com/doi/abs/101002/pse.180.
  • Frangopol DM , Soliman M. 2016. Life-cycle of structural systems: recent achievements and future directions. Struct Infrastruct Eng. 12(1):1–20.
  • Furuta H , Frangopol DM , Akiyama M. 2014. Life-cycle of structural systems: design, assessment, maintenance and management. London: CRC Press.
  • Gomez C , Baker JW. 2019. An optimization-based decision support framework for coupled pre- and post-earthquake infrastructure risk management. Struct Saf. 77:1–9.
  • Gómez C , Sánchez-Silva M , Dueñas-Osorio L. 2014. An applied complex systems framework for risk-based decision-making in infrastructure engineering. Struct Saf. 50:66–77.
  • González AD , Dueñas-Osorio L , Sánchez-Silva M , Medaglia AL. 2016. The interdependent network design problem for optimal infrastructure system restoration. Comput-Aided Civ Infrastruct Eng. 31(5):334–350. http://dx.doi.org/10.1111/mice.12171.
  • Guasch JL , Laffont J-J , Straub S. 2008. Renegotiation of concession contracts in latin america: evidence from the water and transport sectors. Int J Ind Organ. 26(2):421–442.
  • Hong S. 2016. When does a public–private partnership (ppp) lead to inefficient cost management? evidence from South Korea’s urban rail system. Publ Money Manage. 36(6):447–454.
  • Jayasuriya S , Zhang G , Jing Yang R. 2019. Challenges in public private partnerships in construction industry: a review and further research directions. Built Env Proj Ass Manage. 9(2):172–185.
  • Jienan G , Shengyue H , Xu R. 2017. Influencing factors of the early contract termination under the public-private partnerships mode. In Forum on science and technology in China. Beijing: Editorial Department of China Science and Technology Forum. p. 16–17.
  • Klijn EH , Koppenjan J. 2016. The impact of contract characteristics on the performance of public–private partnerships (ppps). Publ Money Manage. 36(6):455–462.
  • Leruth LE. 2012. Public-private cooperation in infrastructure development: a principal-agent story of contingent liabilities, fiscal risks, and other (un) pleasant surprises. Netw Spat Econ. 12(2):223–237.
  • Li B , Akintoye A , Edwards PJ , Hardcastle C. 2005. Critical success factors for ppp/pfi projects in the uk construction industry. Constr Manage Econ. 23(5):459–471.
  • Ling FYY , Kumaraswamy MM , Dulaimi MF , Khalfan M. 2011. Public private partnerships: overcoming pre-contract problems faced by public clients and private providers in infrastructure projects in singapore. Int J Constr Manage. 11(1):63–77.
  • Liu C , Fan Y , Ordóñez F. 2009. A two-stage stochastic programming model for transportation network protection. Comput Oper Res. 36(5):1582–1590. http://www.sciencedirect.com/science/article/pii/S030505480800052X.
  • Liu J , Gao R , Cheah CYJ , Luo J. 2016. Incentive mechanism for inhibiting investors’ opportunistic behavior in ppp projects. Int J Project Manage. 34(7):1102–1111.
  • Lozano J-M , Sánchez-Silva M. 2019. Improving decision-making in maintenance policies and contract specifications for infrastructure projects. Struct Infrastruct Eng. 15(8):1087–1102.
  • Medda F. 2007. A game theory approach for the allocation of risks in transport public private partnerships. Int J Project Manage. 25(3):213–218.
  • Miao X , Yu B , Xi B , Tang Y-h. 2010. Modeling of bilevel games and incentives for sustainable critical infrastructure system. Technol Econ Develop Econ. 16(3):365–379.
  • Mostafavi A , Abraham D , DeLaurentis D. 2014. Ex-ante policy analysis in civil infrastructure systems. J Comput Civ Eng. 28(5):A4014006.
  • Mostafavi A , Abraham D , DeLaurentis D , Sinfield J , Kandil A , Queiroz C. 2016. Agent-based simulation model for assessment of financing scenarios in highway transportation infrastructure systems. J Comput Civ Eng. 30(2):04015012.
  • Ng ST , Xie J , Cheung YK , Jefferies M. 2007. A simulation model for optimizing the concession period of public–private partnerships schemes. Int J Project Manage. 25(8):791–798.
  • Osei-Kyei R , Chan APC. 2015. Review of studies on the critical success factors for public–private partnership (ppp) projects from 1990 to 2013. Int J Project Manage. 33(6):1335–1346.
  • Osei-Kyei R , Chan APC. 2017. Implementing public–private partnership (ppp) policy for public construction projects in ghana: critical success factors and policy implications. I J Constr Manage. 17(2):113–123.
  • Ouyang M. 2014. Review on modeling and simulation of interdependent critical infrastructure systems. Reliab Eng Syst Saf. 121:43–60. https://www.sciencedirect.com/science/article/pii/S0951832013002056.
  • Ouyang M , Fang Y. 2017. A mathematical framework to optimize critical infrastructure resilience against intentional attacks. Comput-Aided Civ Infrastruct Eng. 32(11):909–929. http://doi.wiley.com/101111/mice.12252.
  • Paez-Perez D , Sanchez-Silva M. 2016. A dynamic principal-agent framework for modeling the performance of infrastructure. Eur J Oper Res. 254(2):576–594.
  • Percoco M. 2014. Quality of institutions and private participation in transport infrastructure investment: evidence from developing countries. Transp Res Part A: Policy Pract. 70:50–58.
  • Renner P , Schmedders K. 2015. A polynomial optimization approach to principal–agent problems. Econometrica. 83(2):729–769.
  • Riascos-Ochoa J , Sánchez-Silva M , Klutke G-A. 2016. Modeling and reliability analysis of systems subject to multiple sources of degradation based on Lévy processes. Probab Eng Mech. 45:164–176. https://www.sciencedirect.com/science/article/pii/S0266892016300704.
  • Roos D , de Neufville R , Moavenzadeh F , Connors S. 2004. The design and development of next generation infrastructure systems. Systems, Man and Cybernetics, 2004 IEEE International Conference on; vol. 5. p. 4662–4666.
  • Sanford Bernhardt KL , McNeil S. 2008. Agent-based modeling: approach for improving infrastructure management. J Infrastruct Syst. 14(3):253–261.
  • Scharle P. 2002. Public-private partnership (ppp) as a social game. Innovation: The European J Social Sci Res. 15(3):227–252.
  • Shrestha A , Martek I. 2015. Principal agent problems evident in chinese ppp infrastructure projects. Proceedings of the 19th International Symposium on Advancement of Construction Management and Real Estate; Springer. p. 759–770.
  • Tariq S , Zhang X , Leung RHM. 2019. An analytical review of failed water public–private partnerships in developing countries. Proc Inst Civil Eng-Manage, Procurement and Law. 172(2):60–69.
  • van Noortwijk JM , Frangopol DM. 2004. Two probabilistic life-cycle maintenance models for deteriorating civil infrastructures. Probab Eng Mech. 19(4):345–359. https://www.sciencedirect.com/science/article/pii/S0266892004000347.
  • Villarreal J. 2005. The cost of capital in projects of basic civil infrastructure (IB). A practical example: the WACC for an airport concession. Revista de Ingeniería. 21:19–29.
  • Wu D , Yin Y , Lawphongpanich S. 2011. Optimal selection of build–operate-transfer projects on transportation networks. Transp Res Part B: Methodol. 45(10):1699–1709.
  • Zhang P , Peeta S , Friesz T. 2005. Dynamic game theoretic model of multi-layer infrastructure networks. Netw Spat Econ. 5(2):147–178.
  • Zou PXW , Zhang G. 2009. Managing risks in construction projects: life cycle and stakeholder perspectives. Int J Constr Manage. 9(1):61–77.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.