Assessing the barriers and risks to private sector participation in infrastructure construction projects in developing countries of Middle East

Abstract

In developing countries, governments are often unable to implement urban infrastructure construction projects (UICPs) on their own, mainly due to budget and financial resource limitations. The participation of the private sector, through public–private partnerships (PPPs), has been considered as an alternative effective method for increasing the efficiency and productivity of urban infrastructure development. However, in many developing countries such as those situated in the Middle East, attracting private sector investments for UICPs uncovers profound challenges that have not ever been comprehensively accounted for and prioritized. To fill this knowledge gap, this study seeks to determine and prioritize the major barriers and risks faced by governments and urban managers in attracting private sector investments through the PPP schemes launched by developing countries in the Middle East. Based on a Delphi study conducted in Iran as an example, the opinions of 60 UICPs experts in both the public and private sectors were collected and analyzed. Results show that technical and organizational barriers and risks were perceived as the most important to private sector participation, followed by economic and financial barriers and risks, and then political and legal barriers and risks.