Articles:

Private Ordering in PPP Infrastructure

Articles

Aug 29, 2017 — Neil Boyle

The Institutional Analysis of PPP Infrastructure Private Ordering In PPP Infrastructure 08/29/2017Updated August 2017 Note: It is assumed that the posted document titled “Probing the World of PPP Infrastructure Incentives” has been read prior to reading this article. 1. This is about private ordering in the context of public private partnership in infrastructure (PPP) and ...

READ MORE | Comment

Lecture Notes on PPP Organization

Articles

Dec 8, 2016 — Neil Boyle

“The exchange between a buyer and a supplier is not merely about the exchange of commodities or of individual behaviors, but is instead the alienation and acquisition between individuals, of the rights of property and liberty created by society, which must therefore be negotiated between the parties concerned before labor ...

READ MORE | Comment

Probing the World of PPP Incentives

Articles

Dec 8, 2016 — Neil Boyle

Introduction This essay is about the incentives of PPP infrastructure projects. It is based on the analytical framework called Transaction Cost Economics or TCE. TCE represents the empirical work of a number of preeminent economists worldwide (e.g., four Nobel Laureates in 20 years), but it was brilliantly researched and brought together ...

READ MORE | Comment

Performance and Renegotiation in Public Procurement and PPP-Writing Complex Contracts for PPP: The Economic Organization of PPP Water and Sanitation (WSS) Projects

Presentation Material

Jul 25, 2015 — Neil Boyle

PERFORMANCE AND RENEGOTIATON IN PUBLIC PROCUREMENT AND PPP - THE ECONOMIC ORGANIZATION OF PPP WSS PHILIPPINES XXX duedate 6192015 prnt 6212015

READ MORE | Comment

PROJECT FINANCE: Incentives and Governance

Articles

Jan 13, 2014 — Neil Boyle

The traditional financial engineering risk-return approach to PPP infrastructure finance goes far but not far enough.  PPPs are often financed with high or even aggressive debt/equity ratios ranging from 80:20 and occasionally reaching the mid 90s.  TCE/NIE tells us that the principals of infrastructure projects are typically bilaterally dependent due to ...

READ MORE | Comment

Economic Governance Made Intelligible

Jan 10, 2014 — Neil Boyle

Economic governance was made intelligible when Williamson postulated (1975) that markets and firms are distinct governance structures of transactions where governance costs vary with the asset specificity of the exchange asset. The asset specificity of transaction-specific assets carries critical information concerning the incentives of the asset owners. It gives rise ...

READ MORE | Comment

Updated – Tougher yet Flexible Implementation and the 32 Year Old Coal Supply Contract- PART – II

Aug 27, 2010 — Neil Boyle

1.     Tougher implementation also means tougher and more open negotiations. Tougher negotiations mean smarter trade-offs are made between the negotiations triple of price (higher or lower), technology (from generic to specialized), and contractual safeguards (less rigid and not reformative to more rigid and reformative). Smart trade-offs induce credible commitment between two parties. For ...

READ MORE | Comment

UPDATED – TCE PRECEPTS FOR ANALYZING INSTITUTIONS

Jul 19, 2010 — Neil Boyle

UPDATED - TCE PRECEPTS FOR ANALYZING INSTITUTIONS 07-19-2010 ver 3C Please click on the above link to see the updated version of what I consider one of my important posts.  It is important because it concentrates in one file the beginning of what I have learned over the past 10 years of studying ...

READ MORE | Comment

Vertical Integration as Paradigm: A graphical representation of TCE

Technical Notes

May 25, 2010 — Neil Boyle

VERTICAL INTEGRATION AS PARADIGM - A graphical representation of TCE 5-25-2010 One of many amazing accomplishments of Professor Williamson and to which we benefit from today was his extraction in reduced mathematical form (1996. pp. 106-111) of the basic structure of economic exchange.  Notwithstanding reduced form mathematics, we can generate new ...

READ MORE | Comment

Contract Mapping

May 1, 2010 — Neil Boyle

Contract mapping illustrates and explains the relationships between the contract triple of: the price of the transaction, the technology as measured by the asset specificity of the transaction, and the safeguards that protect the transaction assets and its agreements from contract hazards. Contract mapping introduces the concept of vertical integration. ...

READ MORE | Comment

Common Hazards Encountered in PPP Projects

Dec 24, 2009 — Neil Boyle

Hazards are embedded in all agreements and contracts. Even after negotiating away all so-called risks, contract hazards comprise a bevy of hidden risks.  These hidden risks are more appropriately referred to as hazardous incentives or transaction costs, which enable the human factors of limited cognitive capacity and guileful self-interest. Please download the following ...

READ MORE | Comment