Barriers to Attracting Private Sector Investment in Public Road Infrastructure Projects in the Developing Country of Iran

Daniel W. M. Chan, Hadi Sarvari (), Ahmad Abdul Jaleel Abdul Husein, Khalid Mubarak Awadh, Mahboobeh Golestanizadeh and Matteo Cristofaro
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Daniel W. M. Chan: Department of Building and Real Estate, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong, China
Hadi Sarvari: Department of Building and Real Estate, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong, China
Ahmad Abdul Jaleel Abdul Husein: Department of Civil Engineering, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan 81595-39998, Iran
Khalid Mubarak Awadh: Department of Civil Engineering, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan 81595-39998, Iran
Mahboobeh Golestanizadeh: Department of Management, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan 81595-39998, Iran
Matteo Cristofaro: Department of Management and Law, University of Rome ‘Tor Vergata’, 00133 Rome, Italy

Sustainability, 2023, vol. 15, issue 2, 1-26

Abstract: Private sector investment, the mainstream financing method for procuring public road transport development projects, has encountered several profound difficulties and risks during execution, particularly in developing countries. However, there needs to be more extensive investigations on the major barriers facing road transport infrastructure projects in these countries. In this vein, the present study aims to identify and assess the perceived barriers inhibiting private sector investment in delivering public road transport infrastructure projects in the developing country of Iran. The research method adopted is based on a descriptive survey with a three-round Delphi technique with 35 experts from both the private and public sector in Iran. According to the research study results, four main groups of legal and organizational, political, economic, and operational barriers have been found to significantly impact the attraction of private sector investment in such projects. The three most significant obstacles for public road transport infrastructure projects in developing countries include: (i) a lack of financial and investment safety; (ii) a lack of proficient managers and policies of public organizations in order to facilitate the process of privatization; and (iii) corruption in the privatization process. The survey findings can help the government and policymakers to eliminate or alleviate the potential barriers towards private sector participation in future public road infrastructure projects, particularly in those developing countries such as Iran.

Keywords: private sector investment; infrastructure development; road transport; barriers; developing countries; public–private partnership (PPP) (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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