Antonio Andreoni, Kenneth Creamer, Mariana Mazzucato, Grové Steyn
Abstract Green transition is a ‘wicked’ problem in that it is complex, systemic, interconnected, and urgent. In this paper we advance a ‘mission-oriented’ approach to reconceptualize energy megaprojects within a systemic, cross-sectoral, and challenge-driven policy framework for energy transition. This approach is operationalized through a discussion of project-level policy instruments including directional public finance, public procurement, and several types of conditionality. These instruments are geared towards shaping markets and industrial supply chains for green transition, and managing risks and rewards associated with energy megaprojects. We also look at the opportunities offered by a more decentralized energy system and the importance of building up state capacity and green coalitions supporting energy transition. We discuss this mission-oriented approach through a deep dive on the South African experience of energy megaprojects with a focus on the restructuring of its public utility, Eskom, as well as opportunities for sustainable industrialization.
The purpose of the article is to substantiate the introduction of international public-private partnerships (IPPPs) to achieve the Sustainable Development Goals in Ukraine. Methodology. The methodological framework of the research relies on the systems approach, which allows the authors to determine the main characteristics of international public-private partnerships to achieve the Sustainable Development Goals; the comparison method, which illustrates the unity of the strategic focus of international public-private partnerships and the Sustainable Development Goals; the dialectical method, which facilitates establishing potential directions for developing international public-private partnerships in Ukraine. Results. The importance of fostering international public-private partnerships to achieve the Sustainable Development Goals in Ukraine is argued. The authors have defined the regime of “international-public-partnerships” in terms of the ideology of the modern economy. The components of the regulatory regime of international public-private partnerships are characterized: the goals to be achieved through introducing the regime; subjects covered by the regime; incentives, benefits, and restrictions necessary to achieve the declared goals; resources involved as part of the regime’s implementation; action plan for the regime’s implementation. The algorithm for introducing the regulatory regime of international public-private partnerships is considered: initiation and initial selection of a project for implementation in terms of an international public-private partnership; assessment and structuring of an IPPP project; drafting an IPPP agreement; conducting tendering procedures and concluding the IPPP agreement; management of the implementation of the international public-private partnership agreement (the IPPP monitoring implementation). Analysis of the current state of the implementation of public-private partnerships shows that state policy remains ineffective. The bulk of public-private partnership agreements deals with housing and public utility services, as this sector is characterized by the low cost of capital expenditures, a simple scheme of investment return, and guaranteed demand. The principal barriers hindering the development of public-private partnerships have been identified. The authors put forward a road map for the IPPP development in Ukraine with the identification of key areas. The main directions of the road map of the regulatory regime of international public-private partnerships involve: amending the legislation on public-private partnerships; increasing the level of responsibility and competence of officials charged with the formation and implementation of public policy on international public-private partnerships; guaranteeing additional sources of business financing; strengthening the role of public-private partnerships amid decentralization. The road map of the IPPP regulatory regime is aimed at stimulating the development and implementation of public-private partnership agreements for the realization of long-term projects in priority economic activities in all regions of Ukraine. Practical implications. The main development directions of the regime of international-public-private partnerships in the current economic realities are outlined. Value/originality. The introduction of the regulatory regime of international public-private partnerships in Ukraine is substantiated, given the achievement of the Sustainable Development Goals.
Yangguang Tian, R. Edward Minchin, Christian Vriborg Petersen, E Moayed · 5 authors
Abstract Infrastructure is critical for enabling society to function and the economy to thrive. Unfortunately, there is an increasing mismatch between the need for infrastructure investment and available financing globally due to constraints on public resources and limited capacity to effectively leverage private sector co-financing in the current system. This research explores the integration of blockchain-enabled asset tokenization with public-private partnership (PPP) project finance to engage private sector resources and innovation to supplement limited public sector capacities and to leverage the inherent efficiencies in infrastructure financing. A conceptual framework of tokenization-enabled PPP project finance is proposed. The transactional and contractual structures of the blockchain-driven infrastructure financing system are illustrated and evaluated. It is found that the potential benefits can be summarized into three categories: better project management, improved bankability, and enhanced inclusivity.
The purpose of this article is to assess the possibility of using blockchain technology in the realm of public procurement within the EU, particularly in connection with the award of public contracts. In this context, blockchain is used as an umbrella term covering IT technologies and cryptographic solutions used to generate consensus on a distributed ledger. The article will present three real use cases for public procurement in Spain, Colombia and Peru. It will also posit two specific areas of EU public procurement practice that might benefit from the use of blockchain technology – the area of data management and accessibility and in situations of clear lack of confidence in public powers.
Jan 1, 2022·Proceedings of the International Conference on Information Economy, Data Modeling and Cloud Computing, ICIDC 2022, 17-19 June 2022, Qingdao, China
Consensus algorithms are getting more and more attention. It can help the majority of nodes in the blockchain to agree on the determination of new blocks. Proof-of-Work is a relatively mature consensus algorithm, which plays an important role in improving the security of Bitcoin. In addition, Proof-
In the literature on relational governance, it is often assumed that relational governance emerges primarily after formal contracting and acts as a functional supplement to a formal contract. In this article, we show that especially facing deep uncertainties, relational governance can emerge before the start of formal partnerships, in the form of trust-building, exchanging resources, and fostering flexibility. Based on a case study of a smart city outsourcing project, this article introduces a forward-extended framework of relational governance that captures the pre-contractual dimensions of relationship cultivation and their role in facilitating formal contracting. The study finds that pre-contractual relational governance facilitates formal contracting by reducing substantive, evaluative, technological, and procedural uncertainties in the project and helps the partners to design an elaborative contract, undergo an easy negotiation, adopt short-term contracts, and use simple monitoring and evaluation methods. The article thus argues that only understanding post-contractual relational governance is insufficient for exploring the relation between formal contracting and relational governance; facing deep uncertainties, it is necessary to understand how public and private parties develop their pre-contractual relationship and reduce the uncertainties before a formal contract can be signed. Points for practitioners Practitioners should realize that there is much room for relational governance in the pre-contractual phase of PPP projects when the projects are rife with various uncertainties. Public and private parties can take measures to build trust, foster flexibility, and create interdependence before a formal contract is signed. These ex-ante relational governance measures can facilitate formal contracting by reducing the various uncertainties, making a formal contract designable, making negotiation smooth and easy, and reducing the need for contract supervision.
Local governments in the Slovak Republic are important in public administration and form an important part of the public sector, as they provide various public services. Until 1990, all public services were provided only by the state. The reform of public administration began in 1990 with the decentralization of competencies. Several competencies were transferred to local governments from the state, and thus municipalities began to provide public services that the state previously provided. Registry offices were the first to be acquired by local governments from the state. This study aimed to characterize the transfer of competencies and their financing from state administration to local government using the example of registry offices in the Slovak Republic. In the paper, we evaluated the financing of this competency from 2007 to 2018 at the level of individual regions of the Slovak Republic. The results of the analysis and testing of hypotheses indicated that a higher number of inhabitants in individual regions did not affect the number of actions at these offices, despite the fact that the main role of the registry office is to keep registry books, in which events, such as births, weddings, and deaths, are registered.
Oyebanjo Ogunlela, Ojugbele Olabode, T. Brailsford Robertson
Corruption in public institutions is a significant problem that stifles economic, social and environmental development worldwide. This predominates when there is a lack of transparency, inadequate record-keeping, and low public accountability. Accordingly, the questions this paper intends to provide answers to are two-fold. Firstly, what are the recurring patterns of procurement corruption in the South Africa (SA) public sector? Secondly, how can digital technology deployment assist in checking this trend? The desktop method was adopted through literature examination of studies relating to corruption, procurement, blockchain and digitization. We conclude by proposing a model/framework for adopting and using blockchain technology in public institutions to minimise corruption and the time taken for contract document preparation and acceptance. This study contributed to knowledge by evaluating the issues associated with public procurement and how blockchain and digitization can be adopted to help stern the tide of corruption in public institutions.
Maria A. Egorova, Luibov Andreeva, Владимир Андреев, Imeda A. Tsindeliani · 5 authors
Abstract Using the case study method, the study examines the prospects and initiatives of the state that can create preconditions for the formation of new areas of legal regulation in the field of digital public procurement as well as issues of improving the mechanisms of information systems, taking into account the specifics of states with a multi-structured economy. The objective of the study is to assess the applicability of the tools for digital transformation of the Russian Federation in the field of public procurement in the context of international practice. Confirming all the advantages of the idea of digital transformation of public procurement systems, the Russian experience is intended to demonstrate what problems at the level of legislative regulation the state policy associated with the implementation of such systems can face. In this case, in contrast to foreign practices, the Russian system of electronic public procurement in the aggregate creates a single information space that, in fact, has no direct analogues and is a special example of interaction between electronic platforms in this area. In addition, the example of introducing distributed ledger technology into such systems is significant from the point of view of the functioning of electronic public procurement platforms. The results of this study and the tools used to assess legal regulation in the field of public procurement can be used by state authorities of the Russian Federation, taking into account the needs of entrepreneurs, to better assess the feasibility and consequences of participation in public procurement procedures. This study’s results can also be of relevance to researchers of comparative legislation in the field of legal regulation of public procurement.
Blockchain technology and New Public Governance (NPG) represent promising concepts for various researchers. As such, both concepts offer the vision of an altered relationship between public administration and its non-public actors by emphasizing a strong position of non-public actors for public service delivery. This research aims to identify the relevance of NPG to leading blockchain implementations in the European public sector. For this purpose, both topics are combined in an explorative analysis. The analysis leverages an adapted analysis framework designed for this research effort to structure the expectations around NPG. Qualitative interviews with multiple key stakeholders of blockchain implementations projects were conducted to understand the actual impact of blockchain on the actor's relationships for public service delivery. This article presents the findings to this question and concludes that the use of blockchain has the changed actor relationships only in parts. Consequently, the author finally draws attention to the importance of blockchain governance and blockchain regulation for further developing the relationships of public administrations and their non-public counterparts.
Purpose As a remedy to usually voluminous, complicated and not easily readable construction contracts, smart contracts can be considered as an effective and alternative solution. However, the construction industry is merely known as a frontrunner for fast adoption of recent technological advancements. Numerous administrative risks challenge construction companies to implement smart contracts. To highlight this issue, this study aims to assess the administrative risks of smart contract adoption in construction projects. Design/methodology/approach A literature survey is conducted to specify administrative risks of smart contracts followed by a pilot study to ensure that the framework is suitable to the research question. The criteria weights are calculated through the fuzzy analytical hierarchy process method, followed by a sensitivity analysis based on degree of fuzziness, which supports the robustness of the developed hierarchy and stability of the results. Then, a focus group discussion (FGD) is performed to discuss the mitigation strategies for the top-level risks in each risk category. Findings The final framework consists of 27 sub-criteria, which are categorized under five main criteria, namely, contractual, cultural, managerial, planning and relational. The findings show that (1) regulation change, (2) lack of a driving force, (3) works not accounted in planning, (4) shortcomings of current legal arrangements and (5) lack of dispute resolution mechanism are the top five risks challenging the adoption of smart contracts in construction projects. Risk mitigation strategies based on FGD show that improvements for the semi-automated smart contract drafting are considered more practicable compared to full automation. Originality/value The literature is limited in terms of the adoption of smart contracts, while the topic is receiving more attention recently. To support easy prevalence of smart contracts, this study attempts the most challenging aspects of smart contract adoption.
Agustín Moya-Colorado, Nina León-Bolaños, José Luis Yagüe Blanco
Project management is an autonomous discipline that is applied to a huge diversity of activity sectors and that has evolved enormously over the last decades. International Development Cooperation has incorporated some of this discipline’s tools into its professional practice, but many gaps remain. This article analyzes donor agencies’ project management approaches in their funding mechanisms for projects implemented by non-governmental organizations. As case study, we look at the Spanish decentralized donor agencies (Spanish autonomous communities). The analysis uses the PM2 project management methodology of the European Commission, as comparison framework, to assess and systematize the documentation, requirements, and project management tools that non-governmental organizations need to use and fulfill as a condition to access these donors’ project funding mechanisms. The analysis shows coincidence across donors in the priority given to project management areas linked to the iron triangle (scope, cost, and time) while other areas are mainly left unattended. The analysis also identifies industry-specific elements of interest (such as the UN Sustainable Development Goals) that need to be incorporated into project management practice in this field. The use of PM2 as benchmark provides a clear vision of the project management areas that donors could address to better support their non-governmental organization-implemented projects.
Infrastructure is the lifeline for fulfilling most of the basic needs that support the well-being and prosperity of human society. To sustain improvements in quality of life, China, as a developing economy, needs more and better infrastructure, despite facing massive funding shortages. An enormous amount of its private capital is locked up because of the many obstacles to private investment. This study introduces a blockchain-based financing instrument for unlocking massive private capital to fund infrastructure projects in China. It draws on a literature review and expert survey to identify the major holdups preventing private capital from funding infrastructure projects and to compare the existing instruments used in infrastructure financing. A fuzzy AHP-SWOT analysis is conducted to reveal the main internal factors (strengths and weaknesses) and external factors (opportunities and threats) in using blockchain-based finance in infrastructure projects. Finally, a conceptual framework for a blockchain-based infrastructure financing system is formulated to take advantage of the strength and opportunities, meanwhile, counter the weakness and threats, and the framework is also validated through its deployment on Hyperledger Fabric.
Self-executing smart contract is believed to revolutionize global procurement by eliminating payment delay and enhancing transaction efficiency. This paper studies the value of smart contract in global procurement, and how the tariff regulations (specific tariff and ad valorem tariff) would affect the retailer’s preference of adopting smart contract.
Compared to traditional contract, the adoption of smart contract alleviates the supplier’s cost pressure while induces the retailer’s cash opportunity cost. Therefore, whether to adopt smart contract in global procurement becomes the retailer’s strategic and practice-relevant decision. The investigation of import tariffs also appears new in the literature.
We develop a game-theoretical model consisting of a retailer and an overseas supplier, where the retailer resells the supplier’s products and also sells self-brand products under the regulation of either a specific or an ad valorem tariff. Under both the tariffs, the retailer adopts either the traditional contract or smart contract to procure from the supplier.
We identify interesting interactions among tariff regulations, the supplier’s pricing decisions, and the value of cash opportunity cost (information update) under smart contract (traditional contract). We find that an increased specific tariff reduces the retailer’s incentives to adopt smart contract, while an increased ad valorem tariff could strengthen the retailer’s incentives to adopt smart contract. Interestingly, we find that, if the retailer faces high demand uncertainty, smart contract could be more profitable given the retailer’s low cash opportunity cost and a moderate ad valorem tariff rate.
Our results can be insightful for the retailers who plan to adopt smart contract but worry about the cash opportunity cost issues. We uncover the rationales of import tariffs promoting or hindering the FinTech (Financial Technology) adoption in global procurement.
The construction industry has long been plagued with late and nonpayments. Despite the desired benefits of payment automation and today’s increased access to digitized progress data, too often payment applications still rely on inefficient workflows and documents that are time-consuming to prepare, review, approve, and execute. This paper argues that current payment applications, even if computerized, cannot support reliable automation of progress payments due to their reliance on centralized control mechanisms and lack of guaranteed execution. The paper examines why blockchain-based and decentralized smart contracts can address these limitations. It explores the conceptual underpinning for the design of an automated payment system and investigates the role of smart contracts in enabling reliable and autonomous conditioning of cash flow on product flow status. To illustrate these points, a use case is presented for smart contract-based progress payments in the context of unmanned aerial vehicle-based progress monitoring. The paper concludes with a discussion of challenges facing blockchain-based payment automation and the broader implications for dispute resolution and construction law informatics, namely zero-trust computing and the creation of an auditable single source of truth for projects.
Sulafa Badi, Edward G. Ochieng, Mohamed Nasaj, Maria Papadaki
This study aims to identify the factors that influence the adoption of smart contracts in the UK construction sector. A deductive questionnaire-based approach informed by the technology-organisation-environment (TOE) model is adopted. The framework is comprised of twelve independent variables and one dependent variable of smart contracts use intention. Ten hypotheses are developed to statistically test the causal relationships between the eleven variables of the research model. The study adopts a convenience sampling approach, with the population of interest being primarily drawn from among UK construction practitioners. The results generated from linear regression analysis suggest that the following four factors have a significant influence on the adoption of smart contracts: supply chain pressure, competitive pressure, top management support, and observability. The descriptive statistics obtained also offer a greater understanding of the perceptions and attitudes towards smart contracts across the UK construction sector. The results demonstrate the usefulness of a perception-based model that utilises the TOE framework to assess facets that influence the adoption of smart contracts. The study contributes to innovation diffusion studies in construction project management and supports “early adopters” at the footfall of the technology’s diffusion curve.
Construction contracts are always regarded as complex and voluminous documents that make it harder to extract required information, preventing its smooth functioning. Due to the recent technological advancements, automated and smart contracts can be considered as an alternative to the traditional contract documents that manage its provisions, obligations and clauses by itself. Since the adoption of smart contracts, which can only be performed with the whole participation of involved stakeholders, is limited in the construction industry, this study aims to investigate the stakeholder-associated drivers to implementing smart contracts. For this purpose, a framework based on fuzzy technique for order of preference by the similarityto-ideal-solution (TOPSIS) is developed consisting of eighteen drivers to be prioritized. A number of eighteen experts, who have adequate experience in both construction industry and contract administration, contributed to this study. The results indicate that (i) simple layout to read, (ii) reduction in risks of clients, (iii) clarity in responsibility and risk allocation, (iv) easy to comprehend from various stakeholders, and (v) conflict, claim and dispute reduction were the top five drivers to implement smart contracts. The findings imply that other than its own advantages, the reasons to seek the adoption of smart contracts are mainly the deficiencies of the traditional contract documents. The findings of this study are expected to assist research and development departments of the firms seeking to implement smart contract, while addressing the gap in the literature in this context.
Purpose Blockchain and IoT are recently developed technologies for the database creation and smooth functioning of supply chain activities. The purpose of this paper is to analyse the use of blockchain and IoT for green procurement activities. The integration of blockchain and IoT interface can solve many challenges faced by industries having green procurement. Design/methodology/approach Through a literature survey and interviews with procurement managers from different industries, challenges in green procurement were identified. Elements of blockchain and IoT were analysed to overcome the green procurement challenges. Architecture for blockchain and IoT is developed to be implemented in the green supply chain for a sustainable business. Findings The challenges of green procurement are categorised and ranked as per the industry survey results. The architecture shows the tasks of blockchain and IoT in green procurement activities. Research limitations/implications Green procurement is still at developing stages in India as compared to Europe and many other countries. There is a requirement for more government involvement and participation from industry and customers to implement such methods. Environment issues and challenges faced by industries are addressed. Practical implications Blockchain–IoT integration can transform a green supply chain. This research helps industries planning to incorporate blockchain and IoT in identifying the areas to focus and better planning of resources for the successful implementation of smart technologies in their supply chains. Green initiatives ensure global competitiveness as well as recognition at the global level. Green procurement ensures the minimal usage of energy and efficient waste disposal. Originality/value The implementation of green procurement and challenges associated with it are addressed in this research. This will work as a framework for industries looking forward to implementing blockchain and IoT in their supply chains for solving green procurement challenges.
The issue of whether contracts promote innovation and sustainability is an important but overlooked aspect for achieving energy and environmental targets, as well as for creating smart and sustainable cities. In this article, based on the principle/agent problem and Holmström and Milgrom’s work on optimal contracts it is argued that the current general conditions of architectural and engineering consulting agreements in Sweden (ABK 09)—a standard type of contract often used in developer/consultant relations—may not incentivize choices that support the long-term goals of society. Furthermore, although this exploratory study specifically analyses a Swedish standard contract, the question of how contractual incentive structures can optimize real-world performance is a general one, and thus the article’s findings have general applicability. This exploratory study also points to further research into how contractual structures impact climate-neutral buildings. In this way, Swedish consultants who use ABK 09 are incentivized to include low-risk, well-proven, and widely used technologies in order to minimize risks for themselves. This study contributes to resolving this dilemma by suggesting how ABK 09 could be restructured to change the balance between incentives and risk and incentivize innovation and sustainability. As mentioned above, the current study operates at a theoretical level. It discusses six possible changes that would better align the contract with the societal goals of innovation and sustainability.
August Thio-ac, Alfred Keanu Serut, Rayn Louise Torrejos, Keenan Dave Rivo · 5 authors
Electronic systems tend to simplify the tedious traditional scheme and basically focuses on the platform design and process organization. The integrity of the output of an automated system is not left behind but the possibility of internal manipulation is still high. This paper presents the current issues in company procurements and the solution in the form of blockchain technology. Several individuals and professionals were asked to evaluate a blockchain-based procurement system in comparison to the current electronic (e-procurement) system. A blockchain-based system has the capability to hold transactional data with complete decentralization and eliminate the growing number of fraud cases in companies and organizations. This paper mainly focuses on the effectiveness of a blockchain-based system in company procurements.
Rob Vluggen, Cees J. Gelderman, Janjaap Semeijn, Marc van Pelt
Public agencies feel the need to advance sustainability and use procurement as an instrument to do so. Many studies focused on internal forces, explaining the limited success of sustainable public procurement. This study focused on how external forces are able to hold municipalities accountable for sustainable procurement. Three mid-sized Dutch municipalities were investigated through an extensive document study and 34 semi-structured interviews. The results show minor legal pressure to enforce sustainable procurement. National legislation, guidelines and principles are considered non-binding, due to a lack of penalties in the case of non-compliance. Real pressure stems from lobbying by branch organizations and political pressure initiated by citizens. In contrast with the New Public Management principles, municipalities appear to place more emphasis on legal and financial accountability, in contrast to performance accountability. Accountants mainly focus on legitimacy and the finance department only monitors spending within budget. The hybrid organization of the procurement function seems to impede sustainability development. Only the larger projects are subject to sustainability requirements, set by centralized purchasing departments. Smaller projects, responsible for 2/3 of the total spend are managed by decentralized groups, remaining under the radar of sustainability policies.
The terms governing the provision of supplies, services, or works by an economic operator to a governmental entity are set into a public contract that is signed, following a procurement process. This article explores whether the public administration can utilise smart contracts to incorporate the terms governing the provision of supplies, services, or works. The fundamental elements of a contract are assessed, in order to determine whether a smart contract can be considered as fulfilling these requirements. Following this assessment, the main hurdles to the use of smart contracting are examined and a possible solution proposed. The case for utilising smart contracting within the realm of public procurement is finally advocated.