Ce 403 - Topic 2 - Typical Infrastructure Planning Steps 1o69y
This document was ed by and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this report form. Report 3i3n4
Overview 26281t
& View Ce 403 - Topic 2 - Typical Infrastructure Planning Steps as PDF for free.
More details 6y5l6z
- Words: 4,221
- Pages: 70
TYPICAL INFRASTRUCTURE PLANNING STEPS
© Boeing Laishram
Learning Objectives § Economic objectives of infrastructure § Principles of infrastructure planning § Steps involve in infrastructure planning
06/09/16
Infrastructure Planning
3
ECONOMIC OBJECTIVES OF INFRASTRUCTURE PLANNING 06/09/16
Infrastructure Planning
4
Economic Objectives § Improved standard of living and economic development are frequently referred to in infrastructure investment decision-making § Improving standard of living is closely related to the economic objective of improving economic welfare § Objective of economic development depends upon the priorities of seven economic objectives
06/09/16
Infrastructure Planning
5
7 Economic Objectives - Definitions § Total employment ►
Total number of remunerative jobs at either national or a sub-national geographically defined area (such as state, city)
§ Productivity ►
►
06/09/16
Value of production of marketed goods and services per hour worked Items with no market values like time savings, and leisure are not included in the definition of productivity
Infrastructure Planning
6
7 Economic Objectives – Contd. § Economic growth ►
►
06/09/16
Increase in total production valued at marketdetermined prices For example, real Gross National Product or the gross product of some sub-national geographically defined area
Infrastructure Planning
7
7 Economic Objectives – Definitions (Contd.) § Increased economic welfare ►
►
►
When a change (such as investment in transportation infrastructure) yields economic benefits to both individuals and firms – whose economic value exceeds the economic costs of achieving them Cost – All economic benefits and living standards forgone as a result of the investment in question Economic welfare s for items for which there is no market but people are willing to pay to acquire them • Time savings; Leisure time; Improved health and environmental conditions
06/09/16
Infrastructure Planning
8
7 Economic Objectives – Definitions (Contd.) § Distribution of income ►
►
Share of total output and income obtained by groups at different levels of income Place a value on the fairness of the division of output
§ Regional transfers ►
Transferring the value of production or economic welfare from one region to another
§ Sectoral transfers ►
06/09/16
Shifting wealth or economic activity from one industry to another
Infrastructure Planning
9
Infrastructure Projects – Selection Criteria Objective
Project Selection Criterion
Growth in total Any project that creates employment employment
Ranking and Rationing Criterion Projects creating the most employment
Growth in productivity
Any project with a higher Projects with the rate of return than that highest rate of being realized in the return private sector
Economic growth
Any project with a positive rate of return
06/09/16
Infrastructure Planning
Project with the highest rate of return 10
Infrastructure Projects – Selection Criteria (Cont.) Objective
Project Selection Criterion
Ranking and Rationing Criterion
Economic welfare
Any project with a positive Projects with the highest net present value net present value or the highest net present value per dollar of capital invested
Distribution of income
Any project with a higher rate of return than the social discount rate, where benefits and costs to lower-income groups are weighted more highly than those to higher-income groups Infrastructure Planning
06/09/16
Projects with the highest net benefit or highest net present value per dollar per capital invested, where benefits and costs to lower-income groups are weighted more highly 11
Infrastructure Projects – Selection Criteria (Cont.) Objective
Project Selection Criterion Ranking and Rationing Criterion
Regional transfers
Any project with a positive net present value where benefits and costs beyond regional boundaries are not counted
Projects with the highest net present value or highest net present value per dollar of capital invested, where benefits and costs beyond regional boundaries are counted
Sectoral transfers
Any project with a positive net present value (assuming the social discount rate) where benefits and costs to other sectors are not counted
Projects with the highest net present value or highest net present value per dollar of capital invested, where benefits and costs to other sectors are not counted
06/09/16
Infrastructure Planning
12
Economic Objectives – Contd. § Economic welfare is best served through selection of projects based on benefit-cost analysis § Many infrastructure projects are implemented without benefit-cost analysis ►
06/09/16
There is implicit understanding that the benefits will exceed the costs from a national income standpoint
Infrastructure Planning
13
PRINCIPLES OF INFRASTRUCTURE PLANNING 06/09/16
Infrastructure Planning
14
Infrastructure Planning - Principles § Objectives and values change over time ►
►
06/09/16
Several examples of programs implemented with full public but in later years have been reversed Example, dams constructed for flood control and other water resource objectives, destroyed to return to their original state for environmental purposes such as migratory channels for fish
Infrastructure Planning
15
Infrastructure Planning – Principles (Contd.) § Different infrastructure systems need to be integrated ►
►
06/09/16
For example, within a highway right of way, physical facility carries automobiles, public transit vehicles, goods movement vehicles, pedestrians, and bicyclists Water and waste distribution systems, power and telecommunications systems, and storm water distribution systems are also included
Infrastructure Planning
16
Infrastructure Planning – Principles (Contd.) § Infrastructure planning involves not only the provision of the physical plant but also its operation and management ►
Challenges inherent in infrastructure projects planning • Satisfying demands for services; Solving problems related to the services; Taking of water, land, air and ecological resources • These challenges relate to initial installation and then to its functioning in a system
§ Planning of infrastructure is vital to the economic future of a country – Both for economically advanced countries and developing nations 06/09/16
Infrastructure Planning
17
Infrastructure Planning – Principles (Contd.) § Infrastructure is expensive, so the planning process must be thorough ►
►
06/09/16
Public works – Major capital investments, strain budgets and taxing capabilities Need to improve and strengthen organizations and processes whereby public works are identified, planned in myriad details, constructed, and maintained and operated
Infrastructure Planning
18
Infrastructure Planning – Principles (Contd.) § Many different levels of government are involved ►
►
06/09/16
Planning, implementation and operation of infrastructure involves organizations at national, regional, and local levels; at economic sector and project levels In developing nations, implementation of major infrastructure projects involve assistance from international financial and technical institutions
Infrastructure Planning
19
Infrastructure Planning – Principles (Contd.) § Public participation in planning is vital ►
►
Affected by beneficial and adverse effects of the projects should be involved in planning Special public interest groups and individuals
§ Financial considerations are usually an important component of infrastructure planning for both publicly and privately financed infrastructure projects
06/09/16
Infrastructure Planning
20
Infrastructure Planning – Principles (Contd.) § Planning should involve a systematic and logical process ►
►
►
Physical, environmental, social and political setting in which the planning take place differs from one location to another Adopting a general approach and detailed methodologies should recognize that diversity of issues and constraints exist for different projects Planning techniques adopted successfully on projects of various types can serve to guide planning of projects in future • Appropriate modifications to suit new set of conditions
06/09/16
Infrastructure Planning
21
Infrastructure Planning – Principles (Contd.) § Infrastructure planning may involve the formulation of alternative plans to meet different objectives, and a methodology of trade-offs to select an acceptable plan ►
06/09/16
An acceptable plan is intersection of a number of sets of feasible alternatives that meet various criteria of – environmental, economical, financial, legal, technical, social, political and institutional
Infrastructure Planning
22
Screening Alternative Plans Environmentally Feasible Plan Institutionally Feasible Plan Economically Feasible Plan
Politically Feasible Plan
Financially Feasible Plan
Legally Feasible Plan
Socially Feasible Plan
Technically Feasible Plan 06/09/16
Infrastructure Planning
23
Infrastructure Planning – Principles (Contd.) § Many factors are involved in a successful project ►
Government sponsors determines the attractiveness of project after consideration of a number of factors • • • • •
06/09/16
Engineering feasibility Economic and financial viability Environmental and socio-economic impacts Legal and institutional constraints Political acceptability
Infrastructure Planning
24
Infrastructure Planning – Principles (Contd.) § Infrastructure planning is an interdisciplinary process ►
►
►
06/09/16
Professionals involve in planning should recognize the interdisciplinary nature of planning in this field In addition to functional effectiveness; effects on health and safety of those affected by the project; planners must also consider the adverse environmental, social and economic impacts of the project Political, institutional, legal and financial nature that will determine whether the project is acceptable and can be implemented successfully should also be ed Infrastructure Planning
25
Infrastructure Planning – Principles (Contd.) § There is a need for a strong national role in infrastructure planning ►
Allocation of funds and establishment of the regulatory framework for infrastructure decisions
§ Projects may have multiple purposes and multiple objectives ►
06/09/16
Special methods of assessment have been evolved for multipurpose and multiunit projects
Infrastructure Planning
26
Infrastructure Planning – Principles (Contd.) § A successful project frequently requires the of elected and agency officials ►
►
►
06/09/16
Despite favorable results of analyses by planners, the of legislators and government agency decision-makers will still be necessary for a successful project Planning must take of the legislative process and the role of political leaders and constituencies at national, regional and local levels Must take of assigned roles of the pertinent governmental agencies at each of the levels Infrastructure Planning
27
INFRASTRUCTURE PLANNING STEPS 06/09/16
Infrastructure Planning
28
Infrastructure Planning Steps - Types § Rational planning § Planning sequence applicable to major infrastructure projects § Programming and budgeting process of a public works agency
06/09/16
Infrastructure Planning
29
???? § How do you go about buying, say gadget like mobile, camera or household items like furniture or personal items like jeans or big budget items like car, bike and so on? § Discuss the process involved in making the buying decision?
06/09/16
Infrastructure Planning
30
Planning Procedure – Theoretical Basis § Theoretical basis for many planning procedures is embedded in the “reasoned choice” model of individual or group decision making § The steps would be as follows § Problem recognition ►
Individual determines that a problem state exists and that a decision must be considered
§ Goal identification ►
06/09/16
Individual specifies a priori the purpose of the decision Infrastructure Planning
31
Planning Procedure – Theoretical Basis § Contd. § Option generation/identification ►
Individual thinks of potential alternative solutions to the problem at hand
§ Information search ►
06/09/16
Individual seeks information, either about what additional options might be available or about properties of one or more of the options under consideration
Infrastructure Planning
32
Planning Procedure – Theoretical Basis § Contd. § Assessment of option information ►
►
Individual consciously considers the information they have about the different options On the basis of this information, individual forms preferences for some options relative to others
§ Choice ►
06/09/16
Individual selects one of the decision options for purposes of future behavioral enactment
Infrastructure Planning
33
Planning Procedure – Theoretical Basis § Contd. § Post-decision evaluation ►
06/09/16
Individuals reflects on the decision after the option has been enacted, then evaluates the decision (and the decision process) in light of the outcomes that have resulted
Infrastructure Planning
34
Rational Planning Steps § Problem diagnosis ► ►
►
►
Define the problem and gather the baseline data Planning is about future and diagnosis of problems must involve assessment of future states Baseline study of the area is required to describe the nature of the status quo For instance, baseline study of major transportation project will involve • Population types and distribution; Reasons for travel and present infrastructure provisions • Areas of wildlife protection; Hot spots of social dislocation and patterns of migration
06/09/16
Infrastructure Planning
35
Rational Planning Steps – Contd. § Problem diagnosis – Contd. ►
►
►
Data may be collected for demographic forecasting, predicting changes in land use patterns or the prediction of infrastructure capacity limitations People who will work in and ister the region (Public servants and community leaders) are the most useful source of problem definitions Extracting information is not easy; techniques for information extraction • Interviews, brainstorming sessions; and workshops
06/09/16
Infrastructure Planning
36
Rational Planning Steps – Contd. § Goal articulation ►
►
►
Possible to plan without well defined goals; Planning in well developed areas is merely a process of incremental changes to existing plans However, in developing countries with rapid social change – Industrialization increasing in volume and diversity, populations expanding in inappropriate places and infrastructure becoming quickly overwhelmed In these circumstances, it is important to think carefully about goals of infrastructure planning • Why are we doing it and what do we hope to achieve?
06/09/16
Infrastructure Planning
37
Rational Planning Steps – Contd. § Goal articulation – Contd. ►
►
►
06/09/16
Goals are abstract statements concerning what the plan hopes to achieve in the long term Goals exist in tentative form before problem diagnosis phase but become precisely articulated when the baseline data is analyzed and problems to be addressed are clear Goals must be translated into operational objectives which can be measured and used to evaluate the merits of alternative planning solutions.
Infrastructure Planning
38
Rational Planning Steps – Contd. § Forecasting ►
►
►
►
►
Using baseline data and trends, to forecast the planning requirements at some future date Degree of forecasting to predict the impacts of the natural development of the status quo For example, predict traffic congestion, urban blight or electricity shortages Techniques like trend analysis and scenario building will be required to test the likely impact of alternative forms of new infrastructure Uncertainty attached to forecasts depending on the timescale and dynamics of social change • Probability analysis to take of the uncertainty
06/09/16
Infrastructure Planning
39
Rational Planning Steps – Contd. § Design of alternatives ►
►
Create plan alternatives (scenarios) to satisfy the forecast requirements and the goals Design of plan alternatives heavily dependent on team experience • Planning team has to search for indicators of likely solutions that would satisfy the requirements
►
►
06/09/16
Design solutions constrained by simple technical issues like soil type, minimization of route length, design of alternatives is close to formal engineering design Issues like multi-modal, socio-political pressures make design of alternatives more ambiguous Infrastructure Planning
40
Rational Planning Steps – Contd. § Plan testing ►
►
►
Evaluate the degree to which each plan alternative fulfils the goals and to select a preferred option or options At completion of design, the alternatives should be revisited to test for coherence and conformity to the goals, objectives and constraints Objectives must be stated in such a manner to enable comparisons to be made between plans • Techniques – Checklist or formal weighted methods
06/09/16
Infrastructure Planning
41
Rational Planning Steps – Contd. § Plan testing – Contd. ►
Planning team need to determine whether any constraints need to be applied • Constraints on cost may not have been stated in the goal articulation phase but may serve to eliminate some options at the plan testing phase
►
Constraints could also be less tangible but not the less powerful • Whose constituency the infrastructure appear in? • Perhaps local tribal custom is violated by one alternative but not by another • Is the scheme feasible given the difficult legislative changes required?
06/09/16
Infrastructure Planning
42
Rational Planning Steps – Contd. § Evaluation and choice ► ►
Economic & financial evaluation Environmental evaluation
§ Economic evaluation ►
Assess the economic efficiency of the proposed plan, usually in of cost-benefit analysis
§ Financial evaluation ►
Assess the capacity of the proposed plan, or parts of the proposed plan, to generate profits to a private investor
§ Environmental evaluation ►
06/09/16
Assess and mitigate the potential environmental and social impacts of the proposed plan Infrastructure Planning
43
Rational Planning Steps – Contd. § Wide range of approaches to evaluation are available, but only a few are commonly used § Some form of cost-benefits analysis (CBA) is used to evaluate economic efficiency together with simple environmental impact assessment (EIA) § Methods that attempt to trade off technical, social and monetary attributes are rarely used ►
06/09/16
3 possible reasons
Infrastructure Planning
44
Rational Planning Steps – Contd. § 3 possible reasons - Contd. ►
►
►
06/09/16
Ignorance on part of planning team: Very few planners would be familiar with the use of multicriteria methods despite their great power to disaggregate complex planning issues Planners are reluctant to utilize method that is not immediately transparent to the client and other stakeholders It is often a government requirement to submit all infrastructure proposals to economic and environmental evaluation using standardized forms of CBA and EIA Infrastructure Planning
45
Rational Planning Steps – Contd. § CBA – First used in 1930s and fully developed as an evaluation tool by 1950s § It is based on welfare economics § It calculates the ratio between the present value of benefits and the present value of costs expressed in monetary § End result of the analysis is benefit-to-cost ratio that should exceed some predetermined figure greater than 1.0
06/09/16
Infrastructure Planning
46
Rational Planning Steps – Contd. § EIA not precise as CBA and not required to meet predetermined criteria § EIA is a systematic attempt to describe the possible environmental and social impacts of the plan and how those impacts could be mitigated by plan changes
06/09/16
Infrastructure Planning
47
Rational Planning Steps – Contd. § Often wise to perform financial evaluation when it is clear that plan may best be implemented using private capital § Often use similar data that was gathered for the economic evaluation but with different objectives § EA – To reveal net social benefit § FA – To demonstrate that private profit can be made
06/09/16
Infrastructure Planning
48
Rational Planning Steps – Contd. § Implementation ►
►
►
►
06/09/16
Prepare a final report and put in place recommendations for the next stages of development Final report may be submitted for comment by stakeholders prior to freezing the plan Necessary to conduct a formal environmental impact assessment which may repeat some of the steps of the planning process, but directed towards the more limited requirements of the relevant environmental legislation Political authorization may be required, enabling legislation may need to be drafted Infrastructure Planning
49
Rational Planning Steps – Contd. § Implementation – Contd. ►
Projects could be funded through • Public funds – Project will enter a pipeline for funding where other factors may be used to assess its merit in relation to other infrastructure proposals • External loan or grant providers for consideration • Open to private sector for BOT offers
06/09/16
Infrastructure Planning
50
Major Infrastructure Projects Planning Steps § Preliminary (or reconnaissance) report – First stage § Feasibility report – Second stage § Final design and preparation of contract documents – Third stage § Construction – Fourth stage § Operation – Fifth stage
06/09/16
Infrastructure Planning
51
Introduction § Comprehensive series of studies and approvals before authorisation and implementation ► ►
Major engineering projects - Very large Project in developing countries that can’t be implemented with internal resources, technical and financial assistance sought from internal aid agency
§ Feasibility report - Important product of these studies ► ►
06/09/16
Technical and other studies – Descriptions Investment and annual costs - Estimates
Infrastructure Planning
52
Preliminary Report § Consists of office studies, field studies and preparation of report § Office studies ►
►
►
06/09/16
Maps and photographs – Topographic maps, land surveys, aerial photographs Information on environmental conditions, population and socio-economic data To initially determine the general arrangements of the project components, capacity of the project or the services, and the cost
Infrastructure Planning
53
Preliminary Report – Contd. § Field reconnaissance and surveys ► ► ►
►
Supplement and confirm office studies Suggest changes in the layouts and estimates Topographical surveys, geological and soil investigations, and other field measurements Principal personnel involved in the study • • • •
06/09/16
Engineers and geologists Architects Environmentalists Specialists for the specific types of relevant infrastructure facilities
Infrastructure Planning
54
Preliminary Report – Contd. § Answer the following questions: ► ►
►
06/09/16
Is it a feasible project? What are the approximate estimates of capacity and cost? What additional studies are needed to confirm feasibility?
Infrastructure Planning
55
Feasibility Report § Feasibility report provides the basis for an examination by decision-makers in a government agency to determine whether a project should be implemented and/or financed ►
Should contain enough information to permit a decision on whether or not to implement the project
§ Level of engineering detail is higher than for a preliminary report but lower than needed for detailed design
06/09/16
Infrastructure Planning
56
Feasibility Report – Contd. § Comprehensive feasibility report – Contents ► ►
►
Description and analyses of the data Confirmation of construction feasibility based on field and laboratory investigations Analysis of construction methods • Sources of construction material; access to the project site; management of traffic patterns; diversion of water during construction etc.
►
►
06/09/16
Analyses to determine the principal quantities of construction, a reliable cost estimate, and discussions of the design criteria Construction schedule showing the timing and costs of project features Infrastructure Planning
57
Feasibility Report – Contd. § Contents – Contd. ►
►
►
► ►
06/09/16
Financial analyses projecting the year-by-year costs, revenues, and subsidies Economic analyses of the project, if appropriate – If sponsor is a government agency Plans for financing construction, and for managing the construction and operation Institutional and legal requirements Assessments of the environmental and social impacts of construction and operation, and other impact studies if required. Infrastructure Planning
58
Final Design and Contract Documents Preparation § Contract documents ►
Plans and specifications • To obtain tenders from qualified contractors
► ►
► ►
06/09/16
Responsibilities of the project sponsor and contractor Forms to provide information on the contractor’s legal status and financial capabilities Quantities and prices for construction Construction methods
Infrastructure Planning
59
Construction § Project delivery methods ► ►
06/09/16
Traditional project delivery methods Alternative project delivery methods
Infrastructure Planning
60
Operation § External engineers and other consultants employed ► ► ► ►
06/09/16
Assist in operation for a limited period Train operators Prepare manual for operation and maintenance Monitor the performance of the various facilities
Infrastructure Planning
61
Project Appraisal Process § Process by which the reviewing authority determines whether the project meets appropriate criteria for funding § Project appraisal focuses on the results of planning, not the planning process § Design of planning process ►
06/09/16
Planners need to have sufficient knowledge of the appraisal process of the funding agencies
Infrastructure Planning
62
Infrastructure Planning Steps – Contd. § Programming and budgeting – Infrastructure planning sequence § Programming – Process of prioritizing proposed projects and developing a single-year or a multiyear program of projects, usually within a constrained monetary amount ►
06/09/16
E.g. Five-year capital program (what capital improvements will be designed and constructed over the time period)
Infrastructure Planning
63
Infrastructure Planning Steps – Contd. § Budgeting – Procedure that produce the funding and authority to incur costs and allocate funds ►
06/09/16
Annual legislative authorization for expenditures and may follow multiyear authorization guidelines established by the same legislative bodies
Infrastructure Planning
64
Public Agencies Planning Steps § Programming and budgeting process of public agencies § Setting program goals and objectives ►
Establish clear and measurable statements of what the agency wants to accomplish to meet its policy goals
§ Establishing program performance measures ►
06/09/16
Set criteria to enable the agency to measure the progress of program implementation & evaluate results of its program
Infrastructure Planning
65
Public Agencies Planning Steps – Contd. § Assessing needs and identifying projects ►
► ►
Identify and measure deficiencies, problems and needs Identify alternative solutions to address these needs Develop candidate projects
§ Project evaluation ►
06/09/16
Evaluate proposed projects according to consistent criteria
Infrastructure Planning
66
Public Agencies Planning Steps – Contd. § Priority setting and program development ►
►
►
►
06/09/16
Organize agency’s work into program areas reflecting distinct objectives and/or types of work Identify priorities for each program area consistent with the agency’s goals and objectives Set priorities for projects within (or across) each program area using criteria that reflect agency goals and objectives Develop fiscally constrained candidate programs reflecting realistic project budgets and schedules
Infrastructure Planning
67
Public Agencies Planning Steps – Contd. § Program trade-offs ► ►
Evaluate what the proposed program will achieve Evaluate trade-offs for shifting resources among program areas or project types • E.g. Rehabilitation vs. capacity expansion
►
Determine levels of resource allocation across program areas based on agency priorities, including the results of needs analyses
§ Budgeting ►
06/09/16
Develop an expenditure plan based on available resources and project and program costs Infrastructure Planning
68
Public Agencies Planning Steps – Contd. § Program implementation and monitoring ► ► ► ►
06/09/16
Implement the program Monitor progress in program delivery Track system conditions and performance over time Evaluate results in of established performance measures
Infrastructure Planning
69
References § Goodman, A.S., and Hastak, M. (2006). Infrastructure planning handbook – Planning, engineering, and economics. McGraw Hill, New York. – Chapter Nos 2 and 3. § Parkin, J., and Sharma, D. (1999). Infrastructure planning. Thomas Telford, London. – Chapter No. 3.
06/09/16
Infrastructure Planning
70
06/09/16
Infrastructure Planning
71
© Boeing Laishram
Learning Objectives § Economic objectives of infrastructure § Principles of infrastructure planning § Steps involve in infrastructure planning
06/09/16
Infrastructure Planning
3
ECONOMIC OBJECTIVES OF INFRASTRUCTURE PLANNING 06/09/16
Infrastructure Planning
4
Economic Objectives § Improved standard of living and economic development are frequently referred to in infrastructure investment decision-making § Improving standard of living is closely related to the economic objective of improving economic welfare § Objective of economic development depends upon the priorities of seven economic objectives
06/09/16
Infrastructure Planning
5
7 Economic Objectives - Definitions § Total employment ►
Total number of remunerative jobs at either national or a sub-national geographically defined area (such as state, city)
§ Productivity ►
►
06/09/16
Value of production of marketed goods and services per hour worked Items with no market values like time savings, and leisure are not included in the definition of productivity
Infrastructure Planning
6
7 Economic Objectives – Contd. § Economic growth ►
►
06/09/16
Increase in total production valued at marketdetermined prices For example, real Gross National Product or the gross product of some sub-national geographically defined area
Infrastructure Planning
7
7 Economic Objectives – Definitions (Contd.) § Increased economic welfare ►
►
►
When a change (such as investment in transportation infrastructure) yields economic benefits to both individuals and firms – whose economic value exceeds the economic costs of achieving them Cost – All economic benefits and living standards forgone as a result of the investment in question Economic welfare s for items for which there is no market but people are willing to pay to acquire them • Time savings; Leisure time; Improved health and environmental conditions
06/09/16
Infrastructure Planning
8
7 Economic Objectives – Definitions (Contd.) § Distribution of income ►
►
Share of total output and income obtained by groups at different levels of income Place a value on the fairness of the division of output
§ Regional transfers ►
Transferring the value of production or economic welfare from one region to another
§ Sectoral transfers ►
06/09/16
Shifting wealth or economic activity from one industry to another
Infrastructure Planning
9
Infrastructure Projects – Selection Criteria Objective
Project Selection Criterion
Growth in total Any project that creates employment employment
Ranking and Rationing Criterion Projects creating the most employment
Growth in productivity
Any project with a higher Projects with the rate of return than that highest rate of being realized in the return private sector
Economic growth
Any project with a positive rate of return
06/09/16
Infrastructure Planning
Project with the highest rate of return 10
Infrastructure Projects – Selection Criteria (Cont.) Objective
Project Selection Criterion
Ranking and Rationing Criterion
Economic welfare
Any project with a positive Projects with the highest net present value net present value or the highest net present value per dollar of capital invested
Distribution of income
Any project with a higher rate of return than the social discount rate, where benefits and costs to lower-income groups are weighted more highly than those to higher-income groups Infrastructure Planning
06/09/16
Projects with the highest net benefit or highest net present value per dollar per capital invested, where benefits and costs to lower-income groups are weighted more highly 11
Infrastructure Projects – Selection Criteria (Cont.) Objective
Project Selection Criterion Ranking and Rationing Criterion
Regional transfers
Any project with a positive net present value where benefits and costs beyond regional boundaries are not counted
Projects with the highest net present value or highest net present value per dollar of capital invested, where benefits and costs beyond regional boundaries are counted
Sectoral transfers
Any project with a positive net present value (assuming the social discount rate) where benefits and costs to other sectors are not counted
Projects with the highest net present value or highest net present value per dollar of capital invested, where benefits and costs to other sectors are not counted
06/09/16
Infrastructure Planning
12
Economic Objectives – Contd. § Economic welfare is best served through selection of projects based on benefit-cost analysis § Many infrastructure projects are implemented without benefit-cost analysis ►
06/09/16
There is implicit understanding that the benefits will exceed the costs from a national income standpoint
Infrastructure Planning
13
PRINCIPLES OF INFRASTRUCTURE PLANNING 06/09/16
Infrastructure Planning
14
Infrastructure Planning - Principles § Objectives and values change over time ►
►
06/09/16
Several examples of programs implemented with full public but in later years have been reversed Example, dams constructed for flood control and other water resource objectives, destroyed to return to their original state for environmental purposes such as migratory channels for fish
Infrastructure Planning
15
Infrastructure Planning – Principles (Contd.) § Different infrastructure systems need to be integrated ►
►
06/09/16
For example, within a highway right of way, physical facility carries automobiles, public transit vehicles, goods movement vehicles, pedestrians, and bicyclists Water and waste distribution systems, power and telecommunications systems, and storm water distribution systems are also included
Infrastructure Planning
16
Infrastructure Planning – Principles (Contd.) § Infrastructure planning involves not only the provision of the physical plant but also its operation and management ►
Challenges inherent in infrastructure projects planning • Satisfying demands for services; Solving problems related to the services; Taking of water, land, air and ecological resources • These challenges relate to initial installation and then to its functioning in a system
§ Planning of infrastructure is vital to the economic future of a country – Both for economically advanced countries and developing nations 06/09/16
Infrastructure Planning
17
Infrastructure Planning – Principles (Contd.) § Infrastructure is expensive, so the planning process must be thorough ►
►
06/09/16
Public works – Major capital investments, strain budgets and taxing capabilities Need to improve and strengthen organizations and processes whereby public works are identified, planned in myriad details, constructed, and maintained and operated
Infrastructure Planning
18
Infrastructure Planning – Principles (Contd.) § Many different levels of government are involved ►
►
06/09/16
Planning, implementation and operation of infrastructure involves organizations at national, regional, and local levels; at economic sector and project levels In developing nations, implementation of major infrastructure projects involve assistance from international financial and technical institutions
Infrastructure Planning
19
Infrastructure Planning – Principles (Contd.) § Public participation in planning is vital ►
►
Affected by beneficial and adverse effects of the projects should be involved in planning Special public interest groups and individuals
§ Financial considerations are usually an important component of infrastructure planning for both publicly and privately financed infrastructure projects
06/09/16
Infrastructure Planning
20
Infrastructure Planning – Principles (Contd.) § Planning should involve a systematic and logical process ►
►
►
Physical, environmental, social and political setting in which the planning take place differs from one location to another Adopting a general approach and detailed methodologies should recognize that diversity of issues and constraints exist for different projects Planning techniques adopted successfully on projects of various types can serve to guide planning of projects in future • Appropriate modifications to suit new set of conditions
06/09/16
Infrastructure Planning
21
Infrastructure Planning – Principles (Contd.) § Infrastructure planning may involve the formulation of alternative plans to meet different objectives, and a methodology of trade-offs to select an acceptable plan ►
06/09/16
An acceptable plan is intersection of a number of sets of feasible alternatives that meet various criteria of – environmental, economical, financial, legal, technical, social, political and institutional
Infrastructure Planning
22
Screening Alternative Plans Environmentally Feasible Plan Institutionally Feasible Plan Economically Feasible Plan
Politically Feasible Plan
Financially Feasible Plan
Legally Feasible Plan
Socially Feasible Plan
Technically Feasible Plan 06/09/16
Infrastructure Planning
23
Infrastructure Planning – Principles (Contd.) § Many factors are involved in a successful project ►
Government sponsors determines the attractiveness of project after consideration of a number of factors • • • • •
06/09/16
Engineering feasibility Economic and financial viability Environmental and socio-economic impacts Legal and institutional constraints Political acceptability
Infrastructure Planning
24
Infrastructure Planning – Principles (Contd.) § Infrastructure planning is an interdisciplinary process ►
►
►
06/09/16
Professionals involve in planning should recognize the interdisciplinary nature of planning in this field In addition to functional effectiveness; effects on health and safety of those affected by the project; planners must also consider the adverse environmental, social and economic impacts of the project Political, institutional, legal and financial nature that will determine whether the project is acceptable and can be implemented successfully should also be ed Infrastructure Planning
25
Infrastructure Planning – Principles (Contd.) § There is a need for a strong national role in infrastructure planning ►
Allocation of funds and establishment of the regulatory framework for infrastructure decisions
§ Projects may have multiple purposes and multiple objectives ►
06/09/16
Special methods of assessment have been evolved for multipurpose and multiunit projects
Infrastructure Planning
26
Infrastructure Planning – Principles (Contd.) § A successful project frequently requires the of elected and agency officials ►
►
►
06/09/16
Despite favorable results of analyses by planners, the of legislators and government agency decision-makers will still be necessary for a successful project Planning must take of the legislative process and the role of political leaders and constituencies at national, regional and local levels Must take of assigned roles of the pertinent governmental agencies at each of the levels Infrastructure Planning
27
INFRASTRUCTURE PLANNING STEPS 06/09/16
Infrastructure Planning
28
Infrastructure Planning Steps - Types § Rational planning § Planning sequence applicable to major infrastructure projects § Programming and budgeting process of a public works agency
06/09/16
Infrastructure Planning
29
???? § How do you go about buying, say gadget like mobile, camera or household items like furniture or personal items like jeans or big budget items like car, bike and so on? § Discuss the process involved in making the buying decision?
06/09/16
Infrastructure Planning
30
Planning Procedure – Theoretical Basis § Theoretical basis for many planning procedures is embedded in the “reasoned choice” model of individual or group decision making § The steps would be as follows § Problem recognition ►
Individual determines that a problem state exists and that a decision must be considered
§ Goal identification ►
06/09/16
Individual specifies a priori the purpose of the decision Infrastructure Planning
31
Planning Procedure – Theoretical Basis § Contd. § Option generation/identification ►
Individual thinks of potential alternative solutions to the problem at hand
§ Information search ►
06/09/16
Individual seeks information, either about what additional options might be available or about properties of one or more of the options under consideration
Infrastructure Planning
32
Planning Procedure – Theoretical Basis § Contd. § Assessment of option information ►
►
Individual consciously considers the information they have about the different options On the basis of this information, individual forms preferences for some options relative to others
§ Choice ►
06/09/16
Individual selects one of the decision options for purposes of future behavioral enactment
Infrastructure Planning
33
Planning Procedure – Theoretical Basis § Contd. § Post-decision evaluation ►
06/09/16
Individuals reflects on the decision after the option has been enacted, then evaluates the decision (and the decision process) in light of the outcomes that have resulted
Infrastructure Planning
34
Rational Planning Steps § Problem diagnosis ► ►
►
►
Define the problem and gather the baseline data Planning is about future and diagnosis of problems must involve assessment of future states Baseline study of the area is required to describe the nature of the status quo For instance, baseline study of major transportation project will involve • Population types and distribution; Reasons for travel and present infrastructure provisions • Areas of wildlife protection; Hot spots of social dislocation and patterns of migration
06/09/16
Infrastructure Planning
35
Rational Planning Steps – Contd. § Problem diagnosis – Contd. ►
►
►
Data may be collected for demographic forecasting, predicting changes in land use patterns or the prediction of infrastructure capacity limitations People who will work in and ister the region (Public servants and community leaders) are the most useful source of problem definitions Extracting information is not easy; techniques for information extraction • Interviews, brainstorming sessions; and workshops
06/09/16
Infrastructure Planning
36
Rational Planning Steps – Contd. § Goal articulation ►
►
►
Possible to plan without well defined goals; Planning in well developed areas is merely a process of incremental changes to existing plans However, in developing countries with rapid social change – Industrialization increasing in volume and diversity, populations expanding in inappropriate places and infrastructure becoming quickly overwhelmed In these circumstances, it is important to think carefully about goals of infrastructure planning • Why are we doing it and what do we hope to achieve?
06/09/16
Infrastructure Planning
37
Rational Planning Steps – Contd. § Goal articulation – Contd. ►
►
►
06/09/16
Goals are abstract statements concerning what the plan hopes to achieve in the long term Goals exist in tentative form before problem diagnosis phase but become precisely articulated when the baseline data is analyzed and problems to be addressed are clear Goals must be translated into operational objectives which can be measured and used to evaluate the merits of alternative planning solutions.
Infrastructure Planning
38
Rational Planning Steps – Contd. § Forecasting ►
►
►
►
►
Using baseline data and trends, to forecast the planning requirements at some future date Degree of forecasting to predict the impacts of the natural development of the status quo For example, predict traffic congestion, urban blight or electricity shortages Techniques like trend analysis and scenario building will be required to test the likely impact of alternative forms of new infrastructure Uncertainty attached to forecasts depending on the timescale and dynamics of social change • Probability analysis to take of the uncertainty
06/09/16
Infrastructure Planning
39
Rational Planning Steps – Contd. § Design of alternatives ►
►
Create plan alternatives (scenarios) to satisfy the forecast requirements and the goals Design of plan alternatives heavily dependent on team experience • Planning team has to search for indicators of likely solutions that would satisfy the requirements
►
►
06/09/16
Design solutions constrained by simple technical issues like soil type, minimization of route length, design of alternatives is close to formal engineering design Issues like multi-modal, socio-political pressures make design of alternatives more ambiguous Infrastructure Planning
40
Rational Planning Steps – Contd. § Plan testing ►
►
►
Evaluate the degree to which each plan alternative fulfils the goals and to select a preferred option or options At completion of design, the alternatives should be revisited to test for coherence and conformity to the goals, objectives and constraints Objectives must be stated in such a manner to enable comparisons to be made between plans • Techniques – Checklist or formal weighted methods
06/09/16
Infrastructure Planning
41
Rational Planning Steps – Contd. § Plan testing – Contd. ►
Planning team need to determine whether any constraints need to be applied • Constraints on cost may not have been stated in the goal articulation phase but may serve to eliminate some options at the plan testing phase
►
Constraints could also be less tangible but not the less powerful • Whose constituency the infrastructure appear in? • Perhaps local tribal custom is violated by one alternative but not by another • Is the scheme feasible given the difficult legislative changes required?
06/09/16
Infrastructure Planning
42
Rational Planning Steps – Contd. § Evaluation and choice ► ►
Economic & financial evaluation Environmental evaluation
§ Economic evaluation ►
Assess the economic efficiency of the proposed plan, usually in of cost-benefit analysis
§ Financial evaluation ►
Assess the capacity of the proposed plan, or parts of the proposed plan, to generate profits to a private investor
§ Environmental evaluation ►
06/09/16
Assess and mitigate the potential environmental and social impacts of the proposed plan Infrastructure Planning
43
Rational Planning Steps – Contd. § Wide range of approaches to evaluation are available, but only a few are commonly used § Some form of cost-benefits analysis (CBA) is used to evaluate economic efficiency together with simple environmental impact assessment (EIA) § Methods that attempt to trade off technical, social and monetary attributes are rarely used ►
06/09/16
3 possible reasons
Infrastructure Planning
44
Rational Planning Steps – Contd. § 3 possible reasons - Contd. ►
►
►
06/09/16
Ignorance on part of planning team: Very few planners would be familiar with the use of multicriteria methods despite their great power to disaggregate complex planning issues Planners are reluctant to utilize method that is not immediately transparent to the client and other stakeholders It is often a government requirement to submit all infrastructure proposals to economic and environmental evaluation using standardized forms of CBA and EIA Infrastructure Planning
45
Rational Planning Steps – Contd. § CBA – First used in 1930s and fully developed as an evaluation tool by 1950s § It is based on welfare economics § It calculates the ratio between the present value of benefits and the present value of costs expressed in monetary § End result of the analysis is benefit-to-cost ratio that should exceed some predetermined figure greater than 1.0
06/09/16
Infrastructure Planning
46
Rational Planning Steps – Contd. § EIA not precise as CBA and not required to meet predetermined criteria § EIA is a systematic attempt to describe the possible environmental and social impacts of the plan and how those impacts could be mitigated by plan changes
06/09/16
Infrastructure Planning
47
Rational Planning Steps – Contd. § Often wise to perform financial evaluation when it is clear that plan may best be implemented using private capital § Often use similar data that was gathered for the economic evaluation but with different objectives § EA – To reveal net social benefit § FA – To demonstrate that private profit can be made
06/09/16
Infrastructure Planning
48
Rational Planning Steps – Contd. § Implementation ►
►
►
►
06/09/16
Prepare a final report and put in place recommendations for the next stages of development Final report may be submitted for comment by stakeholders prior to freezing the plan Necessary to conduct a formal environmental impact assessment which may repeat some of the steps of the planning process, but directed towards the more limited requirements of the relevant environmental legislation Political authorization may be required, enabling legislation may need to be drafted Infrastructure Planning
49
Rational Planning Steps – Contd. § Implementation – Contd. ►
Projects could be funded through • Public funds – Project will enter a pipeline for funding where other factors may be used to assess its merit in relation to other infrastructure proposals • External loan or grant providers for consideration • Open to private sector for BOT offers
06/09/16
Infrastructure Planning
50
Major Infrastructure Projects Planning Steps § Preliminary (or reconnaissance) report – First stage § Feasibility report – Second stage § Final design and preparation of contract documents – Third stage § Construction – Fourth stage § Operation – Fifth stage
06/09/16
Infrastructure Planning
51
Introduction § Comprehensive series of studies and approvals before authorisation and implementation ► ►
Major engineering projects - Very large Project in developing countries that can’t be implemented with internal resources, technical and financial assistance sought from internal aid agency
§ Feasibility report - Important product of these studies ► ►
06/09/16
Technical and other studies – Descriptions Investment and annual costs - Estimates
Infrastructure Planning
52
Preliminary Report § Consists of office studies, field studies and preparation of report § Office studies ►
►
►
06/09/16
Maps and photographs – Topographic maps, land surveys, aerial photographs Information on environmental conditions, population and socio-economic data To initially determine the general arrangements of the project components, capacity of the project or the services, and the cost
Infrastructure Planning
53
Preliminary Report – Contd. § Field reconnaissance and surveys ► ► ►
►
Supplement and confirm office studies Suggest changes in the layouts and estimates Topographical surveys, geological and soil investigations, and other field measurements Principal personnel involved in the study • • • •
06/09/16
Engineers and geologists Architects Environmentalists Specialists for the specific types of relevant infrastructure facilities
Infrastructure Planning
54
Preliminary Report – Contd. § Answer the following questions: ► ►
►
06/09/16
Is it a feasible project? What are the approximate estimates of capacity and cost? What additional studies are needed to confirm feasibility?
Infrastructure Planning
55
Feasibility Report § Feasibility report provides the basis for an examination by decision-makers in a government agency to determine whether a project should be implemented and/or financed ►
Should contain enough information to permit a decision on whether or not to implement the project
§ Level of engineering detail is higher than for a preliminary report but lower than needed for detailed design
06/09/16
Infrastructure Planning
56
Feasibility Report – Contd. § Comprehensive feasibility report – Contents ► ►
►
Description and analyses of the data Confirmation of construction feasibility based on field and laboratory investigations Analysis of construction methods • Sources of construction material; access to the project site; management of traffic patterns; diversion of water during construction etc.
►
►
06/09/16
Analyses to determine the principal quantities of construction, a reliable cost estimate, and discussions of the design criteria Construction schedule showing the timing and costs of project features Infrastructure Planning
57
Feasibility Report – Contd. § Contents – Contd. ►
►
►
► ►
06/09/16
Financial analyses projecting the year-by-year costs, revenues, and subsidies Economic analyses of the project, if appropriate – If sponsor is a government agency Plans for financing construction, and for managing the construction and operation Institutional and legal requirements Assessments of the environmental and social impacts of construction and operation, and other impact studies if required. Infrastructure Planning
58
Final Design and Contract Documents Preparation § Contract documents ►
Plans and specifications • To obtain tenders from qualified contractors
► ►
► ►
06/09/16
Responsibilities of the project sponsor and contractor Forms to provide information on the contractor’s legal status and financial capabilities Quantities and prices for construction Construction methods
Infrastructure Planning
59
Construction § Project delivery methods ► ►
06/09/16
Traditional project delivery methods Alternative project delivery methods
Infrastructure Planning
60
Operation § External engineers and other consultants employed ► ► ► ►
06/09/16
Assist in operation for a limited period Train operators Prepare manual for operation and maintenance Monitor the performance of the various facilities
Infrastructure Planning
61
Project Appraisal Process § Process by which the reviewing authority determines whether the project meets appropriate criteria for funding § Project appraisal focuses on the results of planning, not the planning process § Design of planning process ►
06/09/16
Planners need to have sufficient knowledge of the appraisal process of the funding agencies
Infrastructure Planning
62
Infrastructure Planning Steps – Contd. § Programming and budgeting – Infrastructure planning sequence § Programming – Process of prioritizing proposed projects and developing a single-year or a multiyear program of projects, usually within a constrained monetary amount ►
06/09/16
E.g. Five-year capital program (what capital improvements will be designed and constructed over the time period)
Infrastructure Planning
63
Infrastructure Planning Steps – Contd. § Budgeting – Procedure that produce the funding and authority to incur costs and allocate funds ►
06/09/16
Annual legislative authorization for expenditures and may follow multiyear authorization guidelines established by the same legislative bodies
Infrastructure Planning
64
Public Agencies Planning Steps § Programming and budgeting process of public agencies § Setting program goals and objectives ►
Establish clear and measurable statements of what the agency wants to accomplish to meet its policy goals
§ Establishing program performance measures ►
06/09/16
Set criteria to enable the agency to measure the progress of program implementation & evaluate results of its program
Infrastructure Planning
65
Public Agencies Planning Steps – Contd. § Assessing needs and identifying projects ►
► ►
Identify and measure deficiencies, problems and needs Identify alternative solutions to address these needs Develop candidate projects
§ Project evaluation ►
06/09/16
Evaluate proposed projects according to consistent criteria
Infrastructure Planning
66
Public Agencies Planning Steps – Contd. § Priority setting and program development ►
►
►
►
06/09/16
Organize agency’s work into program areas reflecting distinct objectives and/or types of work Identify priorities for each program area consistent with the agency’s goals and objectives Set priorities for projects within (or across) each program area using criteria that reflect agency goals and objectives Develop fiscally constrained candidate programs reflecting realistic project budgets and schedules
Infrastructure Planning
67
Public Agencies Planning Steps – Contd. § Program trade-offs ► ►
Evaluate what the proposed program will achieve Evaluate trade-offs for shifting resources among program areas or project types • E.g. Rehabilitation vs. capacity expansion
►
Determine levels of resource allocation across program areas based on agency priorities, including the results of needs analyses
§ Budgeting ►
06/09/16
Develop an expenditure plan based on available resources and project and program costs Infrastructure Planning
68
Public Agencies Planning Steps – Contd. § Program implementation and monitoring ► ► ► ►
06/09/16
Implement the program Monitor progress in program delivery Track system conditions and performance over time Evaluate results in of established performance measures
Infrastructure Planning
69
References § Goodman, A.S., and Hastak, M. (2006). Infrastructure planning handbook – Planning, engineering, and economics. McGraw Hill, New York. – Chapter Nos 2 and 3. § Parkin, J., and Sharma, D. (1999). Infrastructure planning. Thomas Telford, London. – Chapter No. 3.
06/09/16
Infrastructure Planning
70
06/09/16
Infrastructure Planning
71
Related Documents 3h463d
Ce 403 - Topic 2 - Typical Infrastructure Planning Steps 1o69y
October 2019 33
It Infrastructure Qualification Planning 38l4s
December 2019 35
Macro Planning Year 2 Topic 7 Hobbies 1zp11
February 2021 0
Seven Domains Of A Typical It Infrastructure 4z6us
October 2019 37
Steps In Planning Function 4z7023
November 2019 44
Steps In Manpower Planning 2i361r
November 2019 34More Documents from "Pakar" 5g1d52
Ce 403 - Topic 2 - Typical Infrastructure Planning Steps 1o69y
October 2019 33
4p345f
October 2020 0
Lecture 7 - Engineering Curves- Ellipse 4j6w5b
November 2019 74