- Funding:
- Capital-intensive nature, requiring huge funds.
- Government internal revenue sources and budget funding are insufficient.
- Pressure of fiscal deficits and increasing public debt burdens.
- Implementation:
- Poorly designed PPP frameworks.
- Existing contracts focus on fiscal benefits over efficient service.
- Neglecting principles of risk allocation.
- Government shifting responsibilities (land acquisition, clearances) to private parties.
- Lack of structure for renegotiation of projects in case of failure.
- Reckless bidding by private parties expecting government rescue.
- Delays in project initiation due to approval processes.
- Lack of identifiable revenue streams in various assets.
- Dispute resolution mechanisms.
- Regulated tariffs in power sector assets.
- Low interest among investors in certain projects.