Practical Applications
Idealtypical project arrangements
This building solution innovative contracting reasons from the perspective of BwN and the preferred involvement of actors in the project phases. For practical application keep the following idealtypical project arrangements into consideration to asses your position and determine appropriate next steps.
Conventional arrangement
The conventional arrangement is structured by state-led, top-down planning. A public actor initiates and finances the project. This actor sets the Terms of Reference based on local and national debates.
These decisions are often inspired on developments in the global maritime network. Hereafter, the initiator appoints a project owner, in general a governmental department or a local (port) authority. The project owner is responsible for further development and finally the overall completion of the project. At this stage, one or more consultants assist the project owner in studying the practicalities of the project. National legislation and institutional setting form the basis for the rules of the game. The most prominent discourse in these project arrangements builds upon economic growth and (inter)national competitiveness.
Integrated Market Arrangement
In the integrated market arrangement, a national government in cooperation with a private company or a private/privatized (port) authority takes the initiative. The project owner works together with a constructor in formulating the design.
This means that the constructor takes up part of the knowledge provision. A trend underlying this arrangement is the continuous process of port privatization, whereby port authorities become more independent of their government (World Bank, 2007). This allows for more freedom in decision-making, including deliberation on environmental permits. Financing in this project arrangement is often structured by the so-called ‘business case’, as the initiating government is not providing (all) the necessary finances to the project. Therefore, external financiers or loans are attracted to the project, which have the possibility to add additional conditions. Another trend is the increasing role of private companies, such as constructors in the design stage of the project. They become involved in deliberations on the design, or even share responsibilities with the project owner under a partnering agreement.
External financier-initiated arrangement
In this arrangement an external (global) financier initiates the project, often together with a government. These actors can be international financing institutions, foreign governments or private companies.
The money provided is conditional, making the financier influence the Terms of References and the design. Therefore, a general consequence is that these projects are often subject to, and designed using international standards (EPA, European, Australian, or standards set by international organizations, such as UNEP). As a result, these Institutions are (partly) detached from their local socio-economic settings.
The private arrangement
The central actor in this arrangement is a private principal, who as in the conventional arrangement, takes the initiative, controls finances, and manages the project.
Examples of these private companies are mining companies, steel producers and infrastructure investors. The first phases in this arrangement show resemblances with the conventional arrangement, although in the later phases, associations with the integrated market arrangement are more apparent. Consultants have a large influence in setting the terms of reference and the design, and part of this consultancy work is taken up by the constructor.