Strategic implementation of PPP for small-scale infrastructure in Sri Lanka: a comparative analysis of alternative PPP models

Abstract

This study aims to provide a thorough comparison of Private Finance Initiative (PFI), Build-Operate-Transfer (BOT), and Joint Venture (JV) models for Small-Scale Infrastructure Development (SSID) in Sri Lanka and devise innovative, tailored recommendations to maximise efficiency, effectiveness, and compatibility. Employing a mixed-methods approach, the research systematically examines the key features, benefits, and limitations of PFI, BOT, and JV models in the context of SSID. A compatibility assessment is conducted, focusing on financing approaches, stakeholder engagement, and other critical success factors. The findings reveal that the BOT and JV models are superior to the PFI model due to their balanced stakeholder engagement, risk sharing, and alignment with critical success factors. Based on these insights, the study formulates novel, customised recommendations for optimising the selected model's efficiency, effectiveness, and compatibility with SSID in Sri Lanka, with the aim of informing policy and practice. Furthermore, the study highlights the need for future research exploring alternative financing models and emerging technologies in SSID, opening new avenues for innovative approaches to infrastructure development in Sri Lanka. In conclusion, this comprehensive comparison offers valuable guidance for academics, industry professionals, and policymakers seeking to enhance small-scale infrastructure development in Sri Lanka, emphasising the importance of selecting the most suitable financing model.