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Recommendations for effective and efficient project planning and implementation capacities

The BENEFIT Matching Framework through the operational Transport Infrastructure Resilience Indicator (TIRI) rating could be used through the project life-cycle to provide assessments of the likelihood of a particular transport infrastructure project to reach cost and time to construction completion, traffic and revenues targets. More specifically:

  • In the planning phase, it will guide project planning and development and provide guidelines as to how to improve the potential of forming a resilient project. Scenarios based on varying financial economic conditions may be assessed.
  • In tender preparation, it will support decisions with respect to the minimum contractual requirements to secure good governance. Notably the calculation of the Governance indicator would provide a measure of governance quality.
  • At project award, it will allow for the assessment of project resilience with respect to its pre-specified outcomes based on the results of the tender procedure. A key measure of contracting the proper competences and appropriate risk allocation is the Cost Saving Indicator.
  • At financial close, it will provide the indication of the appropriate mix of public and private funds that would support the achievement of desired outcomes.
  • During implementation, by adjusting the policy indicators it could support the achievement of particular outcomes and/or provide an estimation of their potential, and, finally,
  • During (re) negotiations, it could provide a measure of the ability of suggested measures to improve on outcomes and enhance project robustness.

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    Wider value propositions for the transport infrastructure business model and Synergies Across Sectors

    The BENEFIT Matching Framework includes the assessment of wider value propositions and synergies across sectors. While it recognises the limitations of each infrastructure mode to include other value-adding activities, it is constructed to consider value propositions that may lead to alternative revenue streams including green and brownfield sections, other transport modes, other non-transport infrastructure, and purely business endeavours also associated with the exclusivity of the offering and its integration in the wider system it represents. Calculating the Revenue Support Indicator provides a measure of how inclusive and integrated an infrastructure project might be; the level of opportunity that may still be exploited and the impact on the likelihood of reaching specific outcomes such a configuration under the particular conditions of a project may have.

     

    Propositions for funding and financing schemes

    The study and research conducted within BENEFIT led to the conclusion that appropriate low-cost financing schemes are needed. The Financing Scheme Indicator (FSI) has the possibility to represent any financing scheme, while the same applies for the Remuneration Attractiveness (RAI) and the Revenue Robustness (RRI) Indicators for the remuneration and revenue scheme, respectively. This allows project owners and sponsors to assess the contribution of the proposed scheme in achieving project outcomes.

     

    Recommendations for Innovation

    The application of innovation is considered in the BENEFIT Matching Framework. However, its successful application is connected to the competence to implement innovation. In addition, innovation carries more risk than is acceptable in many cases. It is therefore recommended that respective competence is included in the project when innovation is considered. Considering innovation sponsors in the financing scheme would also potentially reduce the cost of capital.

     

    Recommendations to increase project creditworthiness

    The TIRI rating (static and dynamic) apart from assessing the likelihood of reaching specific outcomes, which supports and contributes in assessing more accurately a project’s creditworthiness, also allows for:

  • Assessing the managerial flexibility through the project lifecycle, and, therefore, it is not limited to the assessment of the risk bearing capability of the involved parties.
  • Guiding improvements, especially with respect to the policy indicators that may drive specific outcomes
  • The effective use of real options, although this is not explicitly treated in any of the BENEFIT project cases.
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    Contact us

    Dr. Athena Roumboutsos

    University of the Aegean 
    Department of Shipping, Trade and Transport

    Email: benefit@aegean.gr

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