scholarly journals Assessing the Barriers and Risks to Private Sector Participation in Infrastructure Construction Projects in Developing Countries of Middle East

2020 ◽  
Vol 13 (1) ◽  
pp. 153
Author(s):  
Jolanta Tamošaitienė ◽  
Hadi Sarvari ◽  
Daniel W. M. Chan ◽  
Matteo Cristofaro

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.

2021 ◽  
Vol 56 (3) ◽  
pp. 473-484
Author(s):  
Zulkifli Lubis

The biggest threat that results in the project not being successful is failure to build a stakeholder project. Based on research on construction projects in developing countries, the lack of communication among workers due to cultural uniformity and the uniqueness of their respective regions can become work constraints that can affect implementation performance and productivity, namely, there is a 69.61% decrease in time performance. The main objective of this research is to analyze the role of communication management in improving the performance of construction project managers in developing countries, particularly the role of construction managers in implementing a construction project. This research uses a qualitative approach and a case study method. Sampling using purposive sampling. Forum Group Discussion to see how the opinions of construction project managers in Indonesia view the importance of communication management in the success of construction projects. The study results explain that the need for Public Relations Infrastructure management plays a role in ensuring various policies and communication to the public. This is a reflection of the effective function of public relations in the implementation of infrastructure development. In carrying out the construction, the construction project manager must pay attention to communication dynamics to support the success of infrastructure development projects. Contractors and other parties involved in infrastructure development must raise awareness of the essence of effective communication in fostering trust in the public concerned with infrastructure development.


2012 ◽  
Vol 4 (1) ◽  
pp. 11-20
Author(s):  
Marcus Jefferies ◽  
Swee Eng Chen

Private sector input into the procurement of public works and services is continuing to increase. This has partly arisen out of a requirement for infrastructure development to be undertaken at a rate that maintains and allows growth. This has become a major challange for the construction industry that cannot be met by government alone. The emergence of Build-Own-Operate-Transfer (BOOT) schemes as a response to this challange provides a means for developing the infrastructure of a country without directly impacting on the governments budgetary constraints. The concepts of BOOT are without doubt extremely complex arrangements, which bring to the construction sector risks not experienced previously. Many of the infrastructure partnerships between public and private sector in the pastare yet to provide evidence of successful completion, since few of the concession periods have expired. This paper provides an identified list of risk factors to a case study of Stadium Australia. The most significant risk associated with Stadium Australia include the bidding process, the high level of public scrutiny, post-Olympic Games facility revenue and the complicated nature of the consortium structure.  


2019 ◽  
Vol 8 (4) ◽  
pp. 12094-12097

Infrastructure development requires relatively large funds. The limited funding owned by the government encourages the government to cooperate with the private sector. The collaboration scheme is known as the collaboration of business entities (PPPs) or built operate transfer (BOT) schemes both concerning public and private law. Existing regulations encourage renegotiation as an effort to find points of interest for the parties.


Author(s):  
Syamsir Syamsir

Public Service Motivation (PSM) is still a new concept in public administration theory. As a nascent theory, it needs to be proved with any contexts and cases of many countries around the world, especially developing countries that might have different contexts related to cultures, beliefs, views on the importance of financial rewards, etc. So far, most PSM research focuses more on comparisons between public and private employees in the Western and developed countries. There is almost no study about the PSM in developing countries. In addition, most of PSM theories tended to generalize the assumptions of the PSM among employees and often ignore cultural dimensions in their analysis. There is an impression that PSM theories are cross-culturally viable. This study examined the application of the PSM theories in Indonesia as a developing country, especially in Padang West Sumatera. Rational choice theories and the other PSM theories had been used in analyzing the finding of this study. Using t-test on responses by 417 respondents of public and 201 of private sector employees, this study tested the difference of PSM levels between the two sector employees. The findings of this study indicated that there is a significant difference in the level of PSM between public and private sector employees in Padang West Sumatera. The level of PSM of public employees tends to be lower than that of private sector. The results of this study imply that PSM theory is not cross-culturally viable.


Subject Encouraging more private sector participation in infrastructure development. Significance In April 2017 World Bank President Jim Yong Kim announced that the institution would increasingly focus on catalysing commercial capital for infrastructure development. This should provide impetus for public funds to be redeployed to leverage private investments, including in the poorest, riskiest countries. Aiming to be a ‘facilitator of capital’ as well as its historic function as a ‘provider of capital’, the World Bank will deploy new facilities and instruments for private sector participation, and increase its support for institutional, policy and regulatory reforms in developing countries. Impacts Scaled-up MDB operations in frontier economies will catalyse more private investment, particularly in fragile and conflict-affected states. New World Bank facilities and instruments will channel more capital from institutional investors towards emerging markets infrastructure. If World Bank repositioning is emulated by regional development banks, the entire landscape of development finance will be transformed.


2019 ◽  
Vol 18 (3) ◽  
pp. 531-556
Author(s):  
Djoen San Santoso ◽  
Polwatta Gallage Madusha Piumal Gallage

Purpose This paper aims to analyse the factors affecting the performance of large construction projects in Sri Lanka. The causes, impacts and mitigations in association with the critical factors are explored and discussed. Design/methodology/approach The research focuses on the evaluation and perspectives of clients and contractors of large projects in Sri Lanka. Combined quantitative and qualitative methods were applied in this research. Initially, a questionnaire survey was conducted with clients and contractors involved in large projects to evaluate the factors affecting the performance of projects and to identify the ten most critical factors. Interviews with the clients and contractors of three large projects were conducted to examine the causes and impacts of the critical factors and the approaches used to mitigate them. Findings Significant differences in the factors were observed for more than 40 per cent of the total factors under study, the contractors assigning more weight to most of the factors than the clients. The study identified nine internal factors and one external factor as the critical factors. Of these, seven were related to the contractors, which suggested that the contractors have greater roles in defining performance. Lack of management and technical skills of the parties involved, human capacity, lack of understanding and knowledge of the local context, changes in government policies and political interference were identified as significant causes of the critical factors. Originality/value The study analysed the factors affecting the performance of large projects in Sri Lanka, which, at the time of research, had just ended a 26-year-long civil war and was pushing the construction of large projects to be competitive. The challenges faced in this effort were explored as lessons learnt that might improve the efficiency and effectiveness of infrastructure development in Sri Lanka. The combined quantitative and qualitative methods applied in this study are expected to provide new insights in the project performance research, especially the interviews of the critical factors to gain an understanding on how the factors occurred and manifested themselves in real projects. The findings are, however, expected to be applicable to other developing countries that are currently aggressively developing their large infrastructure.


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