Critical Success Factors for Public Private Partnership in the Afghanistan Construction Industry

Abstract

In many countries, the application of public private partnerships (PPP) has become a progressively more essential method of procuring large infrastructure projects. The current government of Afghanistan have limited financial resources to fund infrastructure projects thus, alternative options to public sector capital funding is required. Public private partnership is perhaps the best option to meet these requirements. The decision to use an innovative procurement system, such as PPP depends on the evaluation a set of Critical Success Factors, essential for the successful delivery of PPP projects. A structured questionnaire survey was carried out to determine selected respondents’ ratings of pre-determined factors which have a significant contribution to the success of PPP projects. The results are then ranked in importance. The major contributing factors to successful PPP projects were determined as: an appropriate legal framework, political support, transparency in the procurement process, good governance, availability of financial market and lastly appropriate risk allocation and risk sharing.