Effect of Critical Success factors of Pre-Construction and Construction on Critical Success Factors of Operation in PPP highway project: A Structural Equation Modeling Approach
Road network in India provide backbone to the economic growth in the country. Historically the funding of road projects in India were funded through budgetary allocations. However, the pace of increase in road infrastructure could not keep pace with the growth in traffic resulting into constricted movement of goods, higher cost of transportation and higher cost of vehicle ownership. The two main constraints in the development of roads were the lack of financial resources and inefficient execution of the projects. In 1990s, government of India started Public Private Partnership (PPP) scheme for faster and efficient implementation of road projects. Private sector financial resources and efficient execution capabilities were being utilised through PPP scheme for building road infrastructure. Various models namely BOT (Toll), BOT (Annuity) and Hybrid Annuity models have evolved over period of time to facilitate private sector participation. Government of India has taken several measures like policy changes to incentivise private investment, improving the financial infrastructure and capacity building to maximise private sector participation in building road infrastructure in India. However, due to various reasons PPP mode has, off late, not been able to perform satisfactorily and deliver desirable results. This paper focuses on effect of Critical Success factors of Pre-Construction and Construction on Critical Success Factors of Operation in PPP highway project.