An investigation of privately promoted infrastructure (ppi) strategy in developing countries: Public-private partnership (ppp) approach

The overall aim of research is to investigate the application of PPI strategy in developing countries to provide needed infrastructure and report the PPI opportunities in the selected country, Iran. The main objective of the research is to give a perspective on the issues surrounding the PPI strategy with respect to the Public-Private Partnership (PPP) approach and to develop a methodology for managing the PPI projects pitfalls and risks. Different approaches and models developed in this thesis are considered as the tools for enhancing the level of PPP and the confidence of public and private partners leading to a successful PPI. The research reviews the nature of infrastructure facilities and developing countries and highlights the associated institutional problems. The underlying theory and background of PPI strategy and how it was developed are then investigated. The PPI contract, structure and its financial aspects are fully investigated and a number of approaches are developed to overcome the potential conflicting roles and organisational pitfalls. The financial security system at different stages of PPI projects is proposed in order to increase the chance of project financing. A competitive tendering and negotiation model is developed investigating how the government and promoter's strategies and the long-term partnership could be integrated into the PPI projects procurement considering the Soft Partnership and Hard Partnership approaches. An economic assessment method is also developed to form a basis for governments to measure the PPI projects' validity. A risk management and allocation system is proposed order to identify and classify the critical risks in PPI projects and to model the governments and promoter's undertakings and guarantees in in project security system. A prospective of PPI opportunities in Iran is provided looking at the current transition period implications followed by a real PPI case study in Iran.