Issue 3

CONTENT

Editorial
George Hagan, Milen Baltov and Naomi Brookes

1. Nina Hampl, Rolf Wüstenhagen:
Management of Investor Acceptance in Wind Power Megaprojects: A Conceptual Perspective

2. Jana Korytárová, Vít Hromádka, Zdenék Dufek:
Large City Circle Road Brno

3. Prince Boateng, Zhen Chen, Stephen Ogunlana, Dubem Ikediashi:
A system dynamics approach to risks description in megaprojects development

4. Ana I. Irimia-Diéguez, Dolores Oliver-Alfonso:
Models of Public-Private Partnerships in Megaprojects: the Spanish case

5. Gloria O Oliomogbe, Nigel J Smith:
Value in Megaprojects

6. Teodora Marinova Georgieva:
Research Infrastructure MEGAPROJECT (RIMPs) management in an ecosystem perspective

1. Nina Hampl, Rolf Wüstenhagen:

Management of Investor Acceptance in Wind Power Megaprojects: A Conceptual Perspective

Abstract:
Introduction to the problem – governrnments thrhroughout the world are seeking to generate more of their domestic power from renewable energy sources. Power generation from wind energy is one of the most mature and important renewable energy technologies. On average, projects are steadily growing in size; the trend is towards large-scale wind power plants. Such wind power megaprojects, however, are often marked by high complexity, poor design, and poor delivery, which can diminish their attractiveness to investors. Purpose – This paper aims to shed light on investors’ willingness to finance wind power megaprojects and illuminate the ways in which not only risk and return factors of wind power megaprojects, but also behavioral and social factors influence this attitude, which we call investor acceptance. In addition, this paper examines ways in which megaproject managers can enhance and manage their project’s attractiveness to investors. Design/methodology/approach – This paper develops a conceptual model of investor acceptance of wind power megaprojects and its management based on insights from literature on behavioral finance, social acceptance of wind power projects, megaproject management and stakeholder management. Findings – The paper concludes that investor acceptance of wind power megaprojects is theoretically prone to behavioral and social effects and that megaproject managers can influence investor acceptance through two different approaches: (1) indirectly (with respect to tactical project management) and (2) directly (related to stakeholder management). Research implications – This paper broadens the scope of the research on investor acceptance by applying and further developing this concept in the context of megaprojects in the wind power industry and by discussing implications on megaproject management in a wind power context.

Keywords: Megaproject, Investor Acceptance, Behavioral Finance, Project Management, Wind Power

2. Jana Korytárová, Vít Hromádka, Zdenék Dufek:

Large City Circle Road Brno

Abstract:
Brief introduction to the problem: Brno is the second largest city in the Czech Republic. it is located in the central part of Europe, and within a distance of two hundred kilometers there are other important European capitals: Prague, Vienna and Bratislava. Brno is situated at the crossroads of the D1 (Prague - Brno) and D2 (Brno - Bratislava) motorways. Both of these motorways form part of trans-European East-West (France - Ukraine: E50) and North-South (Scandinavia - Balkans: E55, E65) highways. This means that Brno needs very good road connections inside the city. The Large City Circle Road Brno will solve this problem. Its circular length of 20 km will be one of the most important elements of the Brno transport system. It will become the fastest connection between the external and internal parts of the city and divert much of the transit traffic. This paper deals with the introduction of this important megaproject. Purpose: This paper focuses on the management process of this megaproject, the relationship among the individual parties and it aims at identifying critical risks in managing the project. Design/methodology/approach: Searching for available resources and their analysis, interviews with project partners, the author’s own calculations
and conclusions according to the information obtained.
Findings: Analysis of main risk factors connected to the realization of megaprojects, drawing conclusions from this analysis and evaluation of difficulties in the context of their managing processes.

Keywords: Megaproject, Risk management, Project management

3. Prince Boateng, Zhen Chen, Stephen Ogunlana, Dubem Ikediashi:

A system dynamics approach to risks description in megaprojects development

Abstract:
The inherent risks and their interactive impacts in megaproject development have been found in numerous cases across the world. Although risk management standards have been recommended for the best practice, there is still a lack of systematic approaches to describing the interaction among social, technical, economic, environmental and political (STEEP) risks with regard to all complex and dynamic conditions of megaproject construction for better understanding and effective management of the management mechanism in terms of the nature risks, including their dynamic interactions and impacts in megaproject development. Purpose – Present a model to describe STEEP risks and their interactions in megaproject development. Design/methodology/approach – A case study methodology is adopted. Following comprehensive literature review, qualitative data were gathered from case studies through interview conducted on Tram Network Project in Edinburgh. Casual loops of typical evolution of key indicators of risks were then developed and a hypothesised model of social and environmental (SE) risks was derived using system dynamics (SD) modelling technique. The model was then set up in accordance with British Standards on risk management in order to provide a generic tool for risk management in megaproject development. Findings – The study reveals that cost and time overruns at the developmental stage of the case project are caused mainly by the ineffectiveness of traditional risks assessment techniques used in assessing risks on timely basis and accurate information from the early stages of the project. Evidences collected are used to explain the nature of STEEP risks in particular, the SE risks in the past stages of project development. Further research is also discussed for applying SD methodology in risk management in megaproject development.

Keywords: Megaproject, Risks, System dynamics, Tram project

4. Ana I. Irimia-Diéguez, Dolores Oliver-Alfonso:

Models of Public-Private Partnerships in Megaprojects: the Spanish case

Abstract:
Due to both budgetary constraints on the public sector and to the need to optimize financial resources, several models and methods of public-private partnerships (ppps) in megaprojects have been developed in the current financial crisis, although there is considerable confusion and ambiguity as to how these models should be systematized. This article provides a literature review of PPP Models, where the clarification of this current confusion and ambiguity constitute the fundamental issue addressed by our research. The systematization of the PPP models is performed by applying six classification criteria based on organizational and financial aspects and focused on the Spanish experience. Additionally, a comparative study of the various schemes applied in European countries is carried out, whereby the concession model implemented successfully in Spain is studied in greater detail. To this end, a megaproject, the first metro line of Seville (Spain) forms the basis of a case-study. When the megaproject is viable through user fees, the public sector can use PPPs to defer payments and as a way to control their deficits and debt without cutting investments in infrastructures and public services. Nevertheless, certain drawbacks should be borne in mind, such as the expenditure commitments of future budgets, the higher cost of private funding, and the necessity for transparency and accountability of PPP contractual arrangements to be improved. Therefore, the aim of this article is to analyze the various forms of PPPs in megaprojects in order to determine the potential efficiency gains that can be achieved in the implementation
of these models.

Keywords: Public-Private Partnerships, Models of PPPs, Public sector, Megaproject, Spanish metro line

5. Gloria O Oliomogbe, Nigel J Smith:

Value in Megaprojects

Abstract:
Project management value has moved from ideas of 'value management' to ideas of 'understanding how stakeholders value different things'. In line with this new paradigm, value in megaprojects is influenced by the complex morass of stakeholders involved. This paper explores how stakeholders engage with the megaproject delivery process and value creation. From extant literature, the author reviews the definition of megaprojects and discusses their characteristics. Value and stakeholder value was also discussed. It was proposed that internal stakeholders are concerned with the value from 'project management deployment' while external stakeholders are primarily concerned with the 'value from project outcome'. Using a framework, the relationship between external stakeholders and value from project outcome was argued for. Internal stakeholders and the relationship with value from project management deployment were also argued for. Hence, a Value framework that can be used to determine what value needs to be generated for internal and external stakeholders is proposed. Future research is discussed including the need to further develop this value framework to identify different internal and external stakeholder value across project life cycle and product life cycle.

Keywords: Value, Megaprojects, Stakeholders

6. Teodora Marinova Georgieva:

Research Infrastructure MEGAPROJECT (RIMPs) management in an ecosystem perspective

Abstract:
As the economic, technological and social challenges of creating national and regional competitiveness have become increasingly difficult to address in a valuable way, growth-friendly factors like research infrastructure need to be exploited in their full capacity and capabilities. This paper outlines the principal characteristics of megaprojects in the field of research infrastructure in an ecosystem perspective. The paper is considered to be an empirically informing positioning paper that seeks to encapsulate the success factors required for RIMPs. The analysis of the RIMPs is based on a range of methods (deduction, synthesis, case study analysis; systemic and holistic approaches) used in order to address the issues under examination. The paper discusses the role of research infrastructure megaprojects for creating the European Research Area and boosting the innovation potential of the European economy. The well-defined profile of RIMPs with clear understanding of their specific characteristics, considered within the ecosystem framework, are the most important precondition for successful project management. research limitations in this paper are predetermined by the lack of comprehensive analyses in the field of RIs, comparing different practices and national models and discussing the challenges for their effective management.

Keywords: MEGAPROJECTS management, research infrastructure, ecosystem perspective