Evaluation of the Impact of Private Sector Investment on the Efficiency of Urban Construction Project Management (Case Study: Chabahar City)

Document Type : Research Article

Authors

1 - M.Sc. Student, Department of Civil Engineering, Ki.C., Islamic Azad University, Kish, Iran

2 Assistant Professor, Department of Civil Engineering, CT.C., Islamic Azad University, Tehran, Iran

Abstract
private sector investment is recognized as one of the key mechanisms for sustainable financing, reducing the financial burden on governments, and enhancing the efficiency of civil projects in less developed regions. This investment not only provides financial resources but also introduces advanced technologies, technical knowledge, efficient management models, and greater transparency, thereby addressing common challenges in urban construction project management such as delays, excess costs, and low quality. In Chabahar, as a strategic free trade zone with high potential for port and infrastructure development, examining the impact of this type of investment on construction management efficiency appears essential. In this applied and descriptive-survey research, the effect of private sector investment on the efficiency of urban construction project management in Chabahar was evaluated. The statistical population consisted of 120 managers and experts involved in urban projects, from which 92 individuals were selected through purposive random sampling. Data were collected using a standard 70-item questionnaire (five-point Likert scale) and analyzed with SPSS and SmartPLS software (partial least squares method). The validity and reliability of the instrument were fully confirmed. The results indicated that private sector investment has a strong positive and significant impact on construction management efficiency. The greatest effects were observed from the components of improving executive standards and accelerating execution time, while other components (project financing, reducing government financial burden, technology and technical knowledge transfer, increasing resource productivity, and enhancing financial transparency) also showed positive and significant effects. The findings emphasize the priority of executive quality and scheduling in Chabahar's urban policy-making and recommend that the development of public-private partnership models (PPP/BOT) and transparency systems be prioritized.

Keywords

Subjects

 

   
      Akhtar, M., Mufti, N. A., Mubin, S., Saleem, M. Q., Zahoor, S., & Ullah, S. (2023). Identification of various execution modes and their respective risks for public-private partnership (PPP) infrastructure projects. Buildings, 13(8), Article 1889. https://doi.org/10.3390/buildings13081889
Azizi, R. (2021). The role of the private sector in the development of urban infrastructure [In Persian]. Mashhad: Urban Management Research Institute.
  Aljaber, K., et al. (2024). Critical Success Factors of Water and Power Public–Private Partnerships in Developing Countries: A Systematic Review. Buildings, 14(6), 1603. https://doi.org/10.3390/buildings14061603
  Alqahtani, F. K. (2024). Appraising critical success factors in sustainable housing projects: A comparative study of PPP modalities in Saudi Arabia. Heliyon, 10(9), e32854. https://doi.org/10.1016/j.heliyon.2024.e32854
 Chan, D. W. M., et al. (2023). Barriers to Attracting Private Sector Investment in Public Road Infrastructure Projects in the Developing Country of Iran. Sustainability, 15(2), 1452. https://doi.org/10.3390/su15021452
Guo, J., Del Barrio Álvarez, D., Yuan, J., & Kato, H. (2023). Determinants of the formation process in public-private partnership projects in developing countries: Evidence from China. Journal of Construction Management, 29(3), 134–146.
Hosseini, L. (2024). Spatial justice and private sector participation in urban development [In Persian]. Tehran: Road, Housing and Urban Development Research Center.
Jayasena, N. S., Chan, D. W. M., Kumaraswamy, M. M., Seidu, S., Ekanayake, E. M. A. C., & Siu, F. M. F. (2024). Adoption of public-private partnership (PPP) in smart infrastructure development projects in developing nations: An explorative structural equation modelling analysis. Journal of Infrastructure Development, 29(3), 201–221.
Karimi, M. (2024). Project management and private sector investment in deprived cities [In Persian]. Bandar Abbas: South Development Publications.
Maqbool, R., & Sridhar, H. (2024). Governing public–private partnerships of sustainable construction projects in an opportunistic setting. Journal of Sustainable Infrastructure, 15(2), 98–112.
Moradi, M. (2022). Analysis of the role of the private sector in improving the quality of urban civil projects in deprived areas (Case study: Zabol city) [In Persian]. Human Geography Research Quarterly, 14(4), 101–120.
Niksirat, J., & Rezaei, P. (2022). Challenges of urban planning in free zones: A case study of Chabahar [In Persian]. Chabahar: Makran Coasts Regional Development Center.
OECD. (2023). Financing cities of tomorrow. OECD Journal on Urban Development, 10(2), 105–119.
OECD. (2024). Massive investment is needed in sustainable infrastructure to build climate change resilience. OECD Economic Outlook, 115(3), 45–67.
Peña-Miguela, N., & Cuadrado-Ballesteros, B. (2023). Effect of public–private partnership projects on inequality in developing countries. International Journal of Development Economics, 31(4), 233–245.
Sharifi, A., & Yousefi, F. (2024). Analysis of legal deficiencies in participatory civil contracts [In Persian]. Tehran: Iranian Jurists Society Publications.
Subudhi, S., Moscatelli, G., Trajkovski, M., Distler, J., & Poddar, P. (2024). Bridging the gap: Leveraging the transformative power of private sector partnerships to build the infrastructure of tomorrow. International Journal of Urban Development, 36(2), 156–172.
Talebi, F. (2023). Construction management in participatory projects: Challenges and solutions [In Persian]. Qom: Construction Management Publications.
    World Bank. (2024). Private sector pumps $86B into infrastructure in low- to middle-income nations. World Bank Report on Infrastructure Investment. https://www.worldbank.org/en/news/press-release/2024/private-sector-infrastructure-investment
    World Bank. (2023). Benchmarking infrastructure development 2023. The World Bank. https://www.worldbank.org/en/topic/infrastructure/publication/benchmarking-infrastructure-development-2023
    Yang, J., Thuc, L. D., & Kim, S. Y. (2024). Critical success factors of public–private partnership infrastructure projects from a middle-income country: A comparison with countries in Asia. Journal of Infrastructure Development, 31(2), 55–73.
 
  • Receive Date 28 March 2026
  • Revise Date 25 April 2026
  • Accept Date 27 April 2026
  • First Publish Date 27 April 2026
  • Publish Date 22 June 2026