Conference proceeding
The End of Megaproject Certainty: Post COVID-19 National Infrastructure Management
14th WCEAM Proceedings, pp.271-287
Lecture Notes in Mechanical Engineering, 1
World Congress on Engineering Asset Management, 14 (Singapore, 28/07/2019 - 31/07/2019)
2021
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45 Record Views
Abstract
Uncertainty and its profound impact on the management of infrastructure project portfolios is introduced. The advent of COVID-19 is depicted as a defining event in the management of infrastructure. This study applies the Black Scholes option valuation model and real options analysis to determine value for money in front-end engineering for Australian megaprojects. The findings indicate that despite the fact all current Australian infrastructure projects examined had a positive net present value and a benefit to cost ratio greater than one, almost sixty percent of the planned expenditure was for projects for which real options analysis indicated the engineering as being poor value for money. The paper concludes with recommendations to manage the national portfolio of infrastructure projects as a pipeline of carefully chosen pre-engineered options, some of which are constructible projects and others being non-asset, demand management solutions.
Details
- Title
- The End of Megaproject Certainty: Post COVID-19 National Infrastructure Management
- Creators
- S. G Pudney (Author) - Southern Cross UniversityD. E Mills (Author) - Southern Cross UniversityS Mudunuri (Author) - Southern Cross University
- Publication Details
- 14th WCEAM Proceedings, pp.271-287
- Conference
- World Congress on Engineering Asset Management, 14 (Singapore, 28/07/2019 - 31/07/2019)
- Series
- Lecture Notes in Mechanical Engineering
- Publisher
- Springer International Publishing; Cham
- Edition
- 1
- Identifiers
- 991012922198102368
- Academic Unit
- Faculty of Science and Engineering; School of Environment, Science and Engineering; Engineering
- Language
- English
- Resource Type
- Conference proceeding