Barriers of Public Private Partnership (PPP) Infrastructure Projects in Pakistan

Abstract

Infrastructure project are essential for economic growth of a country. Over the years, public private partnership (PPP) projects has emerged as an alternative way for providing public infrastructure. Despite their widespread adoption and advantages, PPPs have faced many challenges especially in developing countries. This study focuses on identifying major PPP barriers in Pakistan and provides various mitigation measures to overcome them. Forty-one PPP barriers were identified through an extensive literature review. Using a questionnaire survey, a total of 112 responses with response rate of 30% were collected. “Land acquisition problems’’, “Political instability” and “Inadequate consultation of stakeholder” were found to be the top three barriers hindering successful PPP implementation. Twenty semi structured interviews were conducted involving industry experts for finding mitigation measure for these barriers. The interviewees suggested that client or public sector authority should arrange the land before start of project. Achieving political maturity and commitment through cooperation among public sector entities and building legal, technical and financial capabilities. Transparency, fairness and effective communication can greatly reduce stakeholder opposition.