Routledge Handbook of Planning and Management of Global Strategic Infrastructure Projects

Edward Ochieng, Tarila Zuofa, Sulafa Badi, Edward Ochieng, Tarila Zuofa, Sulafa Badi

• Publisher: Routledge
• Year: 2020
• ISBN:
  9781000330083
• Edition: 1
• Topic: Technology & Engineering
• Subtopic: Project Management in Engineering
• Index: Technology & Engineering

This book examines complex challenges in managing major strategic economic and social infrastructure projects. It is divided into four primary themes: value-based approach to infrastructure systems appraisal, enabling planning and execution, financing and contracting strategies for infrastructure systems and digitising major infrastructure delivery.

Within these four themes, the chapters of the book cover:

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• the value and benefits of infrastructure projects

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• planning for resilient major infrastructure projects

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• sustainable major infrastructure development and management, including during mega events

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• improving infrastructure project financing

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• stakeholder engagement and multi-partner collaborations

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• delivering major infrastructure projects effectively and efficiently

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• whole-life-cycle performance, operations and maintenance

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• relationship risks on major infrastructure projects

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• public-private partnerships, design thinking principles, and innovation and technology.

By drawing on insights from their research, the editors and contributors bring a fresh perspective to the transformation of major strategic infrastructure projects. This text is designed to help policymakers and investors select and prioritise their infrastructure needs beyond the constraining logic of political cycles. It offers a practical set of recommendations for governments on attracting private capital for infrastructure projects while creating clear social and economic value for their citizens. Through theoretical underpinning, empirical data and in-depth informative global case studies, the book presents an essential resource for students, researchers, practitioners and policymakers interested in all aspects of strategic infrastructure planning, project management, construction management, engineering and business management.

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INTRODUCTION

Edward Ochieng, Tarila Zuofa and Sulafa Badi

1.1 Learning outcomes of this chapter

In this chapter you will learn about:

• The aim and structure of this book, along with the background to key terminologies related to infrastructure systems, including what is meant by strategic infrastructure systems;
• Definition and scope of strategic infrastructure systems;
• Global infrastructure outlook;
• Trends in global infrastructure spending;
• The impact of the Covid-19 pandemic on construction and infrastructure project delivery;
• The impact of fiscal and monetary policies on infrastructure spending; and
• Need for sustainable infrastructure.

1.2 Primary aims and objectives of the book

The proposed book is aimed at helping policymakers and investors in selecting and prioritising their infrastructure needs beyond the constraining logic of political cycles, offering a practical set of recommendations for governments on attracting private capital for infrastructure projects while creating clear social and economic value for their citizens, and providing support to students, infrastructure researchers, practitioners and policymakers as they continue the challenging quest of improving and understanding the complex strategic planning and management of strategic infrastructure projects.

This book has been designed to accomplish three objectives:

• Demonstrate the importance of long-term strategic infrastructure planning;
• Ascertain the effectiveness of current infrastructure delivery approaches;
• Provide guidance for achieving sustainable infrastructure development that enhances the quality of citizens, maximises benefit realisation, enhances economic development and promotes a more effective and efficient use of the environment and financial resources.

1.3 The structure of the book

The book comprises the following seventeen chapters:

• Chapter 1 introduces the background to strategic infrastructure systems, global infrastructure outlook, global infrastructure spending, impact of the Covid-19 pandemic on construction and infrastructure, value of fiscal and monetary policies on infrastructure spending and need for sustainable infrastructure.
• Chapter 2 established the historiography, theory, and advances in our understanding of project benefits realisation in order to better facilitate the development of major infrastructure and construction projects.
• Chapter 3 focuses on examining how resilience can be enhanced in major infrastructure projects.
• Chapter 4 focuses on examining how the development and management of major sustainable infrastructure projects can be achieved.
• Chapter 5 offers an opportunity to advance understanding of infrastructure development and the sustainability practices across the project life cycle of hosting mega-events, and within different sectors for a non-sporting event.
• Chapter 6 has two broad aims. First, understand the importance and significance of wider stakeholders' involvement in infrastructure projects and second, discuss the processes of engaging stakeholders with appropriate reflection of their needs, requirements, impacts and satisfaction over the entire project life cycle.
• Chapter 7 evaluates some of the management practices in collaborative infrastructure projects and assesses the modalities through which these management practices influence the outcome of these projects.
• Chapter 8 explores some of the challenges, issues and processes used by decision makers and governments in the quest to deliver major infrastructure projects that are effective and efficient.
• Chapter 9 appraises how the whole-life-cycle performance of infrastructure projects can be achieved and sustained.
• Chapter 10 examines how the operations and maintenance strategies can be used to maintain infrastructure systems efficiently.
• Chapter 11 examines how the financing and development of infrastructure projects can be achieved and sustained.
• Chapter 12 identifies mechanisms for enhancing the effectiveness of the regulatory processes for infrastructure system development, through the auditing of the environment by evaluating political and regulatory risks, application of robust benchmarking evaluation systems, standards and contracts.
• Chapter 13 outlines an operational model for infrastructure project delivery that emphasises behavioural aspects.
• Chapter 14 examines how governments can enhance existing public-private partnerships models and practices in major infrastructure systems.
• Chapter 15 primarily examines how infrastructure operators can apply design thinking principles on major infrastructure projects.
• Chapter 16 explores the key cybersecurity issues and challenges facing oil and gas infrastructure systems as they become more digitised.
• Chapter 17 delineates the concepts of digital innovation and appraises ways that the public sector can influence digital infrastructure innovation.

1.4 Definition and scope of strategic infrastructure systems

Strategic infrastructure systems are the backbone that interconnect global economies. Functional strategic infrastructure systems create the greatest impact in terms of growth, social uplift and sustainability. It is generally presumed that for every dollar in capital spent on public infrastructure systems, the gross domestic product of a nation will increase by approximately US$0.5 to US$0.25 (WEF, 2012). Consequently, competitive economic merit clearly depends on a nation's infrastructure strategic vision and long-term planning; however, from the literature reviewed it was found that there is no succinct model available to assist governments in selecting and prioritising their infrastructure requirements beyond constraining logical political cycles. In fact, as demonstrated by Ochieng et al. (2017), infrastructure investments will only drive sustained economic growth when it is well aligned with a nation's priorities. As specified by Ochieng et al. (2017), critical infrastructure investments, whether they sustain existing infrastructures or construct new assets, are vital to economic growth. As shown in this book, several countries are not investing enough, which has hampered their progress and deferred an increased burden to the years ahead. In order to realise benefits from infrastructure systems, it is vital for policymakers to address the following three questions:

• What is the best way to select infrastructure ventures that will generate the utmost impact in terms of economic growth, sustainability and social improvement?
• Once selected, what is the best way for designated government departments to ensure that the ventures are delivered sustainably, effectively and efficiently?
• Do we have good governance structures that can demonstrate professionalism in the management of infrastructure projects and be used to monitor existing and new ventures?

As stated by OECD (2017), major infrastructure investments are often controversial. On the one hand, risks and uncertainties, particularly in relation to the appraisal of future requirements, make the decision-making process challenging. It is worth stressing that the provision of sufficient infrastructure is a very essential component of a nation's progression. This recognition is reflected in this book, and further reinforced by Chen and Bartle (2017), who suggested that a well-sustained, robust and efficient infrastructure system can be used to support and sustain a country's economy, improve the quality of life and strengthen global competitiveness. At this juncture, it is vital to address the following two questions:

• So, what does infrastructure mean?
• What is the standard classification of infrastructures?

From the reviewed literature, it was established that there is no standard or agreed-upon definition of infrastructure according to the present usage of the phrase, thus, within the context of this book the following working definitions have been adopted:

• A physical strategic infrastructure system or network that provides significant services to several sectors or societies and facilitates the overarching development of a country.
• A strategic infrastructure system is one that acts as an enabler for a nation's economic progression, social development and competitiveness.

Chen and Bartle (2017) showed that two approaches can be used to define infrastructure systems. One approach entails a narrow definition and refers to infrastructure as economic physical assets that can be used to support private business development. The second approach is a broader definition that views infrastructure as an inclusive physical asset needed to support both private economic activities and social services. The second approach comprises both social and economic infrastructure systems that are essential for societal development. According to Chen and Bartle (2017), social infrastructure entails schools, universities, hospitals, courts, prisons, parks, housing, recreational facilities, libraries, city halls and facilities. Economic infrastructure comprises roads, bridges, tunnels, airports, transit, ports, railways, energy production facilities, distribution networks, telecommunication systems, water and sewer systems and solid systems. Whereas, WEF (2012) went further and identified three types of infrastructure systems that overlap:

• Economic infrastructure system: ventures that will generate economic growth and enable the community to operate. Within this classification, WEF (2012) itemised the following infrastructures: transport facilities (air, sea and land), utilities (water, gas and electricity), flood defences, waste management and telecommunications network.
• Social infrastructure system: ventures that will assist in the provision of public services. Within this theme, the following were listed: social housing, health facilities, educational establishments and green infrastructure (multifunctional green space within and between urban areas, such as parks, gardens and green corridors), which improves social livelihoods and encourages biodiversity (Kumari and Sharma, 2016).
• Soft infrastructure system: public institutions that are needed to maintain the community. Within this theme, the following were identified: central government building laws, rules and systems that are in place to assist in the upkeep of the law and order, enhance educational attainment and address public health issues.

To provide a further granularity, economic, social and soft infrastructure systems have been further sub-divided into:

1. Functional infrastructure: an infrastructure system that will work and meet the requirements of the society. For instance, electricity grids that can cope with peak demand and motorways are rarely congested. Multi-purpose water dams can provide energy as well as water for irrigation and flood management.
2. Strategic infrastructure: ventures that are functional and create the greatest impact in terms of economic growth, social improvement and sustainability; that is, they provide the highest social benefit. Ochieng et al. (2017) exhibited that they can be split into:
   1. Critical infrastructure: these infrastructure systems support the socioeconomic development of a country. Examples include flood barriers, power generation and mass transit.
   2. Non-critical ventures: these ventures are not critical; however, they accelerate economic growth or boost key environmental and social agendas. For instance, several countries have minimised their investments on fossil fuels and encouraged investment in renewable energy. In addition, some countries are using their broadband network in rural areas to stimulate rural economic progression.

Based on the above appraisal, the infrastructure services appraised in this book have been sub-divided into economic and social infrastructure systems (see Figure 1.1):

Figure 1.1Standard classification of economic and soft infrastructure systems

It is worth highlighting that, for social impact, ec...