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Public-Private Partnerships (PPPs) in Construction Projects: A Study on the Utilization, Effectiveness, and Challenges in Pakistan

Author

Listed:
  • Nijah Akram

    (Department of Architectural Engineering Technology, Punjab Tianjin University of Technology Lahore, Pakistan)

  • Dr. Syed Sohaib Zubair

    (Assistant Professor, Institute of Administrative Sciences, University of Punjab, Lahore, Pakistan)

  • Fahad Asghar

    (Department of Management Sciences, Qurtuba University of Science and Technology, Dera Ismail Khan, Pakistan)

  • Zuhaib Nishtar

    (Department of Electrical Engineering and New Energy, China Three Gorges University, Yichang, China)

  • Kashif Lodhi

    (Department of Management, Economics and Quantitative Methods, Università degli Studi di Bergamo via dei Caniana 2, 24127 Bergamo (BG), Italy)

Abstract

Public-Private Partnerships (PPPs) have emerged as a vital strategy for addressing infrastructure development challenges worldwide including in Pakistan. This study explores the challenges and effectiveness of PPP models in the construction sector in Pakistan focusing on critical aspects of regulatory complexity changing jurisdiction coordination issues financial constraints and the absence of standardized resources. To gauge the effectiveness of different PPP models the study examines the Build-Operate-Transfer (BOT), Design-Build-Operate-Maintain (DBOM), and Concession Agreement models. The BOT model has proven effective for large-scale infrastructure projects but remains vulnerable to political instability. The DBOM model faces financial and regulatory challenges while concession agreements may encounter public accountability and stakeholder conflict issues. The study highlights that the choice of an appropriate PPP model in Pakistan should align with project-specific requirements and challenges. It underscores the significance of addressing political risks regulatory issues and ensuring transparent communication with stakeholders. In conclusion the study offers insights into the challenges and effectiveness of PPP models in Pakistan's construction sector. It recommends the need for a coordinated approach among government entities robust project screening and evaluation transparent and competitive tendering processes and thorough project monitoring. Additionally it calls for the development of comprehensive guidelines and model documents. Future research should consider the contextual variations in different settings to enhance generalizability and employ a combination of data sources to mitigate interview bias. This study contributes to the ongoing discourse on improving PPP implementation in Pakistan with the potential for broader applicability in similar contexts.

Suggested Citation

  • Nijah Akram & Dr. Syed Sohaib Zubair & Fahad Asghar & Zuhaib Nishtar & Kashif Lodhi, 2023. "Public-Private Partnerships (PPPs) in Construction Projects: A Study on the Utilization, Effectiveness, and Challenges in Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(3), pages 402-409.
    • Handle: RePEc:rfh:bbejor:v:12:y:2023:i:3:p:402-409
    DOI: https://doi.org/10.61506/01.00047
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    References listed on IDEAS

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    1. Ahmadabadi, Ali Akbari & Heravi, Gholamreza, 2019. "The effect of critical success factors on project success in Public-Private Partnership projects: A case study of highway projects in Iran," Transport Policy, Elsevier, vol. 73(C), pages 152-161.
    2. Muhammad Ali Noor & Malik Khalfan, 2017. "Public private partnership in transport sector projects in Pakistan," International Journal of Critical Infrastructures, Inderscience Enterprises Ltd, vol. 13(1), pages 70-92.
    3. Zhe Cheng & Zhenshan Yang & Huina Gao & Hui Tao & Ming Xu, 2018. "Does PPP Matter to Sustainable Tourism Development? An Analysis of the Spatial Effect of the Tourism PPP Policy in China," Sustainability, MDPI, vol. 10(11), pages 1-15, November.
    4. Huanming Wang & Wei Xiong & Guangdong Wu & Dajian Zhu, 2018. "Public–private partnership in Public Administration discipline: a literature review," Public Management Review, Taylor & Francis Journals, vol. 20(2), pages 293-316, February.
    5. Usman Ahmad & Hamid Waqas & Kashif Akram, 2021. "Relationship between project success and the success factors in public–private partnership projects: A structural equation model," Cogent Business & Management, Taylor & Francis Journals, vol. 8(1), pages 1927468-192, January.
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    Cited by:

    1. Asuamah Yeboah, Samuel, 2024. "Navigating the Nexus: Overcoming Challenges in Public-Private Partnerships for Sustainable Building Initiatives in Developing Countries," MPRA Paper 122667, University Library of Munich, Germany, revised 05 Nov 2024.
    2. Dr. Farah Yasser & Dr. Ghulam Murtaza Lahbar & Dua Ali & Ali Raza Zaidi, 2024. "Assessing the Connection between Intellectual Capital and Financial Success in Islamic Banking: Empirical Analysis," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 13(3), pages 197-202.

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