Empowering Added Value in Highway Project: A Strategy to Improve the Feasibility

Abstract

Most mega-project infrastructure such as highway construction requires an enormous amount of cost. This situation might be a problem to developing countries that have limited national budget plan. On the other hand, the capability to transfer the funding of infrastructure depends on the project attractiveness to the private sector. The evaluation to involve in the project should be supported by a significant value for money from the business perspective. Optimum feasibility plays a vital role in bridging the partnership between the government and private interests. The study uses a case study of highway project development of Trans-Sumatera highway road (TSHR) that spans about 2700 km to elaborate on how project feasibility can be improved through creative method. Value engineering (VE) approach as a systematic way to generate innovative ideas by combining multidiscipline backgrounds perspective is used. The study shows that additional functions for the project include integration with motorbike toll road, dry port, and railway line; others also include tourism, fiber optic, and service area development. The innovative ideas have contributed to the significant increase in the internal rate of return (IRR) to the project from 7.79 to 12.76%. The study also formulates institutional scheme through build operate sharing transfer (BOST) which administers government's role in the project development.

Modeling cluster development using programming methods: case of Russian Arctic regions

“…In particular, we use three coefficients which show the localization properties of each cluster: localization, focus, and size. This methodology was presented in detail by both developers (Ketels & Protsiv, 2014), their followers (Kopczewska, 2018;Kopczewska et al, 2017) and the authors of this research study (Berawi, 2017;Berawi et. al., 2018;Schepinin et.…”

Optimizing Land Use Allocation of Transit-Oriented Development (TOD) to Generate Maximum Ridership

“…The primary component in value engineering is the function, and it is both the basis and the catalyst of an innovative solution. The function is categorized into the primary and secondary function, in which the basic primary function is a reason for the creation of a system and the basis for the existence of a product, while the secondary function is the support for the basic functions [52]. The compilation of functions confirms the analysis of the objective functions that may or may not be needed and expands idea creation [53].…”