Negative factors in implementing public–private partnership in Indian road projects

Abstract

For the Government projects, Public–Private Partnership (PPP) is an important parameter based on which the project is procured through a private-sector. The objective of this paper was to identify and evaluate the perception of respondents for negative factors affecting Indian road projects undertaken by PPP. Thirteen negative factors were identified through a literature survey and validated with experienced professionals from the public-sector, private-sector and researcher. A questionnaire survey was conducted among major PPP project participants and researchers of Indian PPP road projects to investigate the most important negative factors. Identified factors were grouped into four categories: lack of experience, high cost, project's effectiveness and high risk using factor analysis. The four most important negative factors of Indian PPP Road Projects were identified using the Importance Index Method, which is: excessive restriction on participation, lengthy delays in negotiation, confusion over government objectives and evolution criteria, and fewer employment opportunities. The perception was analyzed with various statistical tools. This paper gives recognition of very important negative factors in the PPP road sector in the Indian context which will help consider road projects under PPP during the development phase itself.