The Diffusion of Risks in Public Private Partnership Contracts

Purpose The UK government argues that the benefits of public private partnership (PPP) in delivering public infrastructure stem from: transferring risks to the private sector within a structure in which financiers put their own capital at risk; and, the performance based payment mechanism, reinforced by the due diligence requirements imposed by the lenders financing the projects (HM Treasury, 2010). Prior studies of risk in PPPs have investigated ‘what’ risks are allocated and to ‘whom’, that is to the public or the private sector. The purpose of this study is to examine ‘how’ and ‘why’ PPP risks are diffused by their financiers. Design/methodology/approach This study focuses on the financial structure of PPPs and on their financiers. Empirical evidence comes from interviews conducted with equity and debt financiers. Findings The findings show that the financial structure of the deals generates risk aversion in both debt and equity financiers and that the need to attract affordable finance leads to risk diffusion through a network of companies using various means that include contractual mitigation through insurance, performance support guarantees, interest rate swaps and inflation hedges. Because of the complexity this process generates, both procurers and suppliers need expensive expert advice. The risk aversion and diffusion and the consequent need for advice add cost to the projects impacting on the government’s economic argument for risk transfer. Limitations and implications The empirical work covers the private finance initiative (PFI) type of PPP arrangements and therefore the risk diffusion mechanisms may not be generalisable to other forms of PPP, especially those that do not involve the use of high leverage or private finance. Moreover, the scope of this research is limited to exploring the diffusion of risk in the private sector. Further research is needed on how risk is diffused in other settings and on the value for money implication of risk diffusion in PPP contracts. Originality/value The expectation inherent in PPP is that the private sector will better manage those risks allocated to it and because private capital is at risk, financiers will perform due diligence with the ultimate outcome that only viable projects will proceed. This paper presents empirical evidence that raises questions about these expectations. Key words: public private partnership, risk management, diffusion, private finance initiative, financiers

The rise of the digital citizen-stakeholder: rebalancing multistakeholder governance

The principle feature in the evolution of the internet has been its ever growing reach to include old and young, rich and poor. The internet’s ever encroaching presence has transported it from our desktop to our pocket and into our glasses. This is illustrated in the Internet Society Questionnaire on Multistakeholder Governance, which found the main factors affecting change in the Internet governance landscape were more users online from more countries and the influence of the internet over daily life. The omnipresence of the internet is self- perpetuating; its usefulness grows with every new user and every new piece of data uploaded. The advent of social media and the creation of a virtual presence for each of us, even when we are not physically present or ‘logged on’, means we are fast approaching the point where we are all connected, to everyone else, all the time. We have moved far beyond the point where governments can claim to represent our views which evolve constantly rather than being measured in electoral cycles.
The shift, which has seen citizens as creators of content rather than consumers of it, has undermined the centralist view of democracy and created an environment of wiki democracy or crowd sourced democracy. This is at the heart of what is generally known as Web 2.0, and widely considered to be a positive, democratising force. However, we argue, there are worrying elements here too. Government does not always deliver on the promise of the networked society as it involves citizens and others in the process of government. Also a number of key internet companies have emerged as powerful intermediaries harnessing the efforts of the many, and re- using and re-selling the products and data of content providers in the Web 2.0 environment. A discourse about openness and transparency has been offered as a democratising rationale but much of this masks an uneven relationship where the value of online activity flows not to the creators of content but to those who own the channels of communication and the metadata that they produce.
In this context the state is just one stakeholder in the mix of influencers and opinion formers impacting on our behaviours, and indeed our ideas of what is public. The question of what it means to create or own something, and how all these new relationships to be ordered and governed are subject to fundamental change. While government can often appear slow, unwieldy and even irrelevant in much of this context, there remains a need for some sort of political control to deal with the challenges that technology creates but cannot by itself control. In order for the internet to continue to evolve successfully both technically and socially it is critical that the multistakeholder nature of internet governance be understood and acknowledged, and perhaps to an extent, re- balanced. Stakeholders can no longer be classified in the broad headings of government, private sector and civil society, and their roles seen as some sort of benign and open co-production. Each user of the internet has a stake in its efficacy and each by their presence and participation is contributing to the experience, positive or negative of other users as well as to the commercial success or otherwise of various online service providers. However stakeholders have neither an equal role nor an equal share. The unequal relationship between the providers of content and those who simple package up and transmit that content - while harvesting the valuable data thus produced - needs to be addressed. Arguably this suggests a role for government that involves it moving beyond simply celebrating and facilitating the on- going technological revolution. This paper reviews the shifting landscape of stakeholders and their contribution to the efficacy of the internet. It will look to critically evaluate the primacy of the individual as the key stakeholder and their supposed developing empowerment within the ever growing sea of data. It also looks at the role of individuals in wider governance roles. Governments in a number of jurisdictions have sought to engage, consult or empower citizens through technology but in general these attempts have had little appeal. Citizens have been too busy engaging, consulting and empowering each other to pay much attention to what their governments are up to. George Orwell’s view of the future has not come to pass; in fact the internet has insured the opposite scenario has come to pass. There is no big brother but we are all looking over each other’s shoulder all the time, while at the same time a number of big corporations are capturing and selling all this collective endeavour back to us.

Constraining type Ia supernova models:SN 2011fe as A test case

The nearby supernova SN 2011fe can be observed in unprecedented detail. Therefore, it is an important test case for Type Ia supernova (SN Ia) models, which may bring us closer to understanding the physical nature of these objects. Here, we explore how available and expected future observations of SN 2011fe can be used to constrain SN Ia explosion scenarios. We base our discussion on three-dimensional simulations of a delayed detonation in a Chandrasekhar-mass white dwarf and of a violent merger of two white dwarfs (WDs) - realizations of explosion models appropriate for two of the most widely discussed progenitor channels that may give rise to SNe Ia. Although both models have their shortcomings in reproducing details of the early and near-maximum spectra of SN 2011fe obtained by the Nearby Supernova Factory (SNfactory), the overall match with the observations is reasonable. The level of agreement is slightly better for the merger, in particular around maximum, but a clear preference for one model over the other is still not justified. Observations at late epochs, however, hold promise for discriminating the explosion scenarios in a straightforward way, as a nucleosynthesis effect leads to differences in the Co production. SN 2011fe is close enough to be followed sufficiently long to study this effect. © © 2012 The American Astronomical Society. All rights reserved.

Pulse-response TAP studies of the reverse water-gas shift reaction over a Pt/CeO2 catalyst

The temporal analysis of products (TAP) technique was successfully applied for the first time to investigate the reverse water-gas shift (RWGS) reaction over a 2% Pt/CeO2 catalyst. The adsorption/desorption rate constants for CO2 and H-2 were determined in separate TAP pulse-response experiments, and the number of H-containing exchangeable species was determined using D-2 multipulse TAP experiments. This number is similar to the amount of active sites observed in previous SSITKA experiments. The CO production in the RWGS reaction was studied in a TAP experiment using separate (sequential) and simultaneous pulsing Of CO2 and H-2. A small yield of CO was observed when CO2 was pulsed alone over the reduced catalyst, whereas a much higher CO yield was observed when CO2 and H-2 were pulsed consecutively. The maximum CO yield was observed when the CO2 pulse was followed by a H-2 pulse with only a short (1 s) delay. Based on these findings, we conclude that an associative reaction mechanism dominates the RWGS reaction under these experimental conditions. The rate constants for several elementary steps can be determined from the TAP data. In addition, using a difference in the time scale of the separate reaction steps identified in the TAP experiments, it is possible to distinguish a number of possible reaction pathways. (c) 2005 Elsevier Inc. All rights reserved.

From Beijing with love: The global dimension of Bertolucci’s The Last Emperor

Famous for being the first foreign feature film that obtained permission to shoot in the Forbidden City, The Last Emperor (1987) is also one of the most ambitious and expensive independent productions of its time, awarded four Golden Globes and nine Academy Awards, including Best Picture. In addition, The Last Emperor can be considered as one of the first attempts of cinematic collaboration between West and East, in a period of cultural and economic transformations witnessed by China. This article aims to offer an overview of the production history of The Last Emperor, focusing on the co-production collaborations and the outcomes of a western auteur’s gaze on Chinese history. Questions of Orientalism, travel narrative and critical reception are taken into account in order to engage with the transnational implications of Bertolucci’s film and the western fascination with China.

Community policing in Northern Ireland: a resistance narrative

Policing in stable democratic societies is predominantly concerned with the implementation and practice of the globally accepted philosophy of community policing. However, the subtle complexities of Northern Ireland's transitional landscape present acute problems for the community policing concept, both as a vehicle for police reform and as a tool for increasing the co-production of security through improved community interaction with the police. This article will examine the current position of the Police Service of Northern Ireland (PSNI) and their Policing with the Community policy. Providing an overview of contextual and contemporary developments, it will assess the efficacy with which the PSNI have realised community policing, as espoused in Patten Recommendation 44. It concludes by determining the role and extent of community engagement with policing in Northern Ireland and the resistances and contestations to the implementation of the community policing in a post-conflict society.

Diversifying From Within: Community Policing and the Governance of Security in Northern Ireland

The subtle and complex nature of Northern Ireland's transitional landscape presents acute difficulties for the community policing concept. As the core to the police reforms in the country, its implementation has faltered in the face of institutional inertia within the Police Service of Northern Ireland (PSNI). This has been further exacerbated by a failure of the police to adequately increase the co-production of security through improved engagement and utilization of Northern Ireland's diverse community infrastructures. This paper will assess the delivery of community policing by the PSNI, while exploring their engagement with Northern Ireland's grass-roots community organizations, and specifically those involved with the governance of security at the local level. Thus, through a framework of adaptation, engagement and delivery of community policing by the PSNI within the unique context of Northern Ireland's security ‘otherness’, the paper will explore the key issues to police–community interaction associated with the broader vision of the Independent Commission on Policing (ICP) on community policing.

North/South Infrastructure Development via Cross-border PPP Mechanism

Both Northern Ireland and Republic of Ireland governments recognise the current infrastructural deficits in their respective jurisdictions which, if not addressed, will undermine the future economic prosperity of both regions. This paper considers the adoption of a collaborative approach on the island to addressing the deficit, using public private partnerships (PPP) as the delivery vehicle. It presents a critical perspective of the challenges and opportunities posed by adopting such a cross-border approach. Whilst PPPs have the potential to bring about North-South co-operation, bridge gaps in infrastructure capacity and facilitate the advancement of sectoral knowledge, their adoption on a cross border basis will require significant reorganisation and change at administrative and sectoral levels. This review concludes that governments and construction sector representatives in Northern Ireland and the Republic of Ireland have still some work to do in order to enhance the capability and readiness of public and private partners to evolve an all-island PPP infrastructure development approach.

Workplace social capital and co-occurrence of lifestyle risk factors: the Finnish Public Sector Study

Objective: The aim of this prospective study was to examine the link between individual and ecological workplace social capital and the co-occurrence of adverse lifestyle risk factors such as smoking, heavy drinking, physical inactivity and overweight.