Application of value engineering at public private partnership project to improve quality of feasibility study (Case study: Airport railway in indonesia)

H. R. Zetha, Mohammed Ali Berawi, Sesmiwati, Susilowati, A. Dofir

Research output: Contribution to conferencePaperpeer-review

1 Citation (Scopus)

Abstract

Private Public Partnership (PPP) plays an important role on the infrastructure development, particularly for developing countries. The basic concept of PPP projects is to achieve value for money (VFM) and clear risk sharing between government and VFM analysis is expected to be carried out at early stage to determine the financial feasibility and risk sharing on infrastructure projects. The PPP regulation in Indonesia is addressed by Presidential Regulation (Perpres) No. 13/2010 governing Public-Private- Partnership in infrastructure procurement to encourage investor private sector to participate in financing infrastructure projects in order to overcome limited budget of the government. However, there are also some failures that impact the projects offered don't meet investor's interests because a lack of feasibility study of the project offered. This research is proposed to improve the quality of the feasibility study phase of a project infrastructure by implementing the value engineering in Public Private Partnership investment process in Indonesia. Value engineering is a methodology that has been widely applied in many countries to provide added value and to enhance maximum result for both project and product development in terms of improvement on quality, technology, efficiency and innovation. The research methodology is conducted by a combination of qualitative and quantitative approaches through questionnaire surveys both online and offline, action research and focus group discussions. A model for applying VE on PPP process is proposed, meanwhile results and discussions from the questionnaire survey including internal and external risk identification that may affect project performance, identification of additional functions for innovation and key success factors of Public Private Partnership (PPP) scheme in Indonesia to finance infrastructure project are presented on this paper. The study case will be implemented on Soekarno-Hatta International Airport Rail Link (SHIARL).

Original languageEnglish
Pages29-36
Number of pages8
Publication statusPublished - 1 Jan 2012
EventInternational Conference on Value Engineering and Management: Innovation in the Value Methodology, ICVEM 2012 - Hong Kong, Hong Kong
Duration: 6 Dec 20127 Dec 2012

Conference

ConferenceInternational Conference on Value Engineering and Management: Innovation in the Value Methodology, ICVEM 2012
Country/TerritoryHong Kong
CityHong Kong
Period6/12/127/12/12

Keywords

  • Feasibility studies
  • Infrastructure project
  • Public private partnership
  • Quality
  • Value engineering

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