Factors Affecting the Readiness of User-Pay Public–Private Partnership Procurement for Infrastructure Projects: A Comparison between Developed and Emerging Economies

Abstract

The successful implementation of infrastructure projects through public–private partnerships (PPPs) significantly relies on a well-designed procurement scheme; however, there is currently no established systematic decision-making model to identify the most optimal one. This paper explores the factors affecting the selection of public–private partnership schemes in infrastructure projects, with a particular focus on the differences between developed and emerging economies. The study opted for a comprehensive literature review and open-ended interviews to validate 25 critical factors affecting the optimum selection of PPP procurement for infrastructure projects. Then, a questionnaire survey was adopted to evaluate the selected factors and empirically examine the differences and commonalities between developed and emerging economies. The results highlighted the “financial attraction of projects to investors” and “financial viability based on the net present value and risk-adjusted present value” as the two most important factors. While the importance of most selection factors was agreed upon, nine selection factors were ranked unanimously higher for developed economies than for emerging economies. The findings of this study will aid in comprehending the factors that impact the choice of PPP schemes and provide insights for policymakers and project managers in both developed and emerging economies. These factors serve as inputs in developing a decision-making framework that aids both public and private stakeholders in selecting the most appropriate PPP procurement schemes for infrastructure projects.