How do project companies support mega-project development?
How do project companies support mega-project development?
Please click the hyperlinks below and read the following six articles. Note: PDF copies of these articles are also available on BlackBoard under the “Final Exam” tab.
1. “Skanska quits US P3 market, replaces civil division chief”
2. “Skanska Books $100M Write-Off On P3s As US Civil Chief Exits That Role”
3. “Moody’s: Florida I-4 P3 filed $100M claim for extra costs, wants 245 extra schedule days”
4. “NY–NJ Port Authority green lights $4B Delta LaGuardia terminal”
5. “LaGuardia Airport – Central Terminal B Redevelopment”
6. “I-4 Ultimate”
Question 2, Part A (5 points):
These articles describe Skanska’s decision to withdraw from U.S. mega-projects due to underperformance. As noted in the “I-4 Ultimate” reading (reading #6), Skanska formed a project company named “I-4 Mobility Partners” to support this project. LaGuardia Gateway Partners (LGP), as noted in “LaGuardia Airport-Central Terminal B Redevelopment” (reading #5) is the project company formed for to support the airport project. Define and describe a project company, and outline why a company like Skanska might form one to develop a mega-project. How do project companies support mega-project development (hint: you will need the Esty reading for these two questions)? The best answers will be 2-3 single spaced paragraphs per question in Times New Roman, 12-point font.
Question 2, Part B (5 points):
The two projects noted in this question did not perform well. Based on what you know about project companies from the readings, how did the project company structure impact Skanska when these projects underperformed? What risks did Skanska assume for these projects and were they consistent with best practice? Lastly, do the readings suggest reasons, perhaps ones outlined by Flyvbjerg, Yescombe, or another author, regarding why these projects failed to deliver a profitable return? The best answers will be 2-3 single spaced paragraphs per question in Times New Roman, 12-point font.
