International Construction: Joint Venture between an International Developer and Government Agency

Running head: INTERNATIONAL CONSTRUCTION
International construction
Joint Venture between an International Developer and Government Agency
Name of the Student
Name of the University
Author note

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INTERNATIONAL CONSTRUCTION
Executive Summary
A joint venture engages multiple business pooling the resources as well as expertise in order to
achieve the goal. However, risks as well as rewards of the organizations are shared. The causes
behind the process of development of a joint venture consists of business expansion, developing
new products and movement to new markets especially overseas. The business may process
strong potential for development as well as innovative ideas as well as products. There are more
number of resources and greater capacity are also included in the project. There are several types
of joint ventures occurred. However, in every case, an option needs to be agreed on co-operating
with another business in a limited as well as particular way. For an example, a small business
with exciting new product might require selling through distribution network of larger company.
On the other hand, setting up a separate joint venture for a new organization for managing a
specific contract can be occurred. Instead of having several advantages, there are a number of
issues generate in joint venture project such as communication issue, conflicts, resource and
reward sharing. Present study deals with the project proposal of 1) Delhi Metro Rail Project
(Phase-III), New Delhi by JMC-CHEC (JV) Ltd, 2) Eastlink Freeway Project, Melbourne by
Department of Transport & Connect-East (JV), 3) The Metro Tunnel Project, Melbourne by
Melbourne Metro Rail Authority (MMRA) & Cross Yarra Partnership consortium (JV) and 4)
Delhi Gurgaon Expressway Project, India, by National Highways Authority of India & DS
Constructions (JV).

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INTERNATIONAL CONSTRUCTION
Table of Contents
Introduction......................................................................................................................................4
Overview of Joint Venture between an International Developer and Government Agency...........4
Reasons for developing International Project Venture....................................................................6
Advantages of joint project venture.................................................................................................7
The factors affecting International Joint Venture............................................................................7
The Metro Tunnel Project, Melbourne by Melbourne-Metro Rail Authority (MMRA) & Cross
Yarra Partnership consortium (JV)..................................................................................................9
Delhi Metro Rail Project (Phase-III), New Delhi by JMC-CHEC (JV) Ltd.................................10
Eastlink Freeway Project, Melbourne by Department of Transport & Connect-East (JV)...........11
Delhi Gurgaon Expressway Project, India, by National Highways Authority of India & DS
Constructions (JV).........................................................................................................................12
Analysis of the case studies...........................................................................................................13
Conclusion.....................................................................................................................................16
References......................................................................................................................................18

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INTERNATIONAL CONSTRUCTION
Introduction
An international joint venture generally occurs during developing a partnership in several
countries from a particular partnership. An organization likes to explore international trade
without taking the responsibilities that includes cross-border transactions. In addition, the option
of developing a joint venture with the foreign partners is important for the organization.
International investors enter into the joint venture and minimize risks that deal with business
acquisition. On the other hand, in international business development, performance of due
diligence on a foreign country as well as partners have limitations as the risks involved with the
business transactions. On the other hand, a joint venture between public as well as private sectors
in public-private partnership arises when a contracting authority may need an equity stake in
operator of the project. The approach includes several benefits and limitations.
Overview of Joint Venture between an International Developer and Government Agency
International joint venture aids organizations to develop strategic alliances. It allows
obtaining competitive benefits through the access to the resources of partners. It consists of
markets, technologies, people as well as capital. International joint projects are practical vehicle
in order to transfer knowledge like transferring technology from the multinational expertise to
the local organizations (Singaravelloo 2017). The knowledge transfer has ability to contribute for
performance enhancement of local organizations. An international joint venture includes the
following elements.