Identification of barriers to Public Private Partnerships implementation in developing countries

Babatunde, Solomon, Perera, Srinath, Udeaja, Chika and Zhou, Lei (2014) Identification of barriers to Public Private Partnerships implementation in developing countries. In: International Conference on Construction in Changing World, 4-7 May 2014, Heritance Kandalama, Sri Lanka.

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Abstract

Public Private Partnerships (PPPs) have become an increasingly important method of delivering infrastructure projects in the last decade and are now used in over 40 countries. The adoption and implementation of PPPs in less mature economies can pose different challenges to that of mature economies. Thus, successful PPPs are designed with careful attention to the context or the enabling environment within which the partnerships will be implemented. The growth of PPPs has in many countries increased the availability of resources, the efficiency, and sustainability of public services especially in the fields of transport, energy, water, telecommunications, and health. In developing countries a number of barriers influencing the implementation of PPPs caused diminishing interests of both local and foreign private investors. The purpose of this paper is to identify the barriers in implementing PPPs in developing countries. The paper adopted past research studies and documentary reports as a means of identifying the barriers to PPPs implementation. Thus, the identified barriers are subjected to a pilot survey. The barriers are categorized by using SLEEPT approach, that includes; social, legal, economic, environmental, political, and technological factors. The paper identified technological barriers, economic barriers, and social barriers as the most influential barriers to PPPs project implementation in developing countries. Therefore, recognition of the barriers and its elimination by the stakeholders in PPPs will allow the partnerships to function effectively and ensuring successful implementation of present and future PPPs.

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