Toward Effective Management of Public-Private Partnership for Infrastructure in the Sultanate of Oman

The increased demand for infrastructure projects in the energy, water, transportation, and social services sectors is vital for economic growth in Oman. There is a need for a massive investment to meet these demands, which treats PPP models as a financing strategy for infrastructure projects. PPP may also facilitate increased efficiency and effectiveness in delivering infrastructure projects and improving the quality of services. However, PPP is a complex model that several authors have reviewed in several contexts, facing challenges to deliver successful infrastructure projects. The research into the PPP framework revealed that the phenomena of the PPP model have not been adequately examined in Oman, particularly concerning management processes, given the limited number of awarded PPP projects. The review of existing frameworks for PPP management did not consider the integrative dimensions necessary for effective management of PPP, including effective governance, financing structure, value for money, and efficient risk management. Consequently, PPP formation and implementation are risky for the public and private sectors. This research has set out to identify the challenges of PPP adoption in Oman and subsequently put forward a comprehensive framework for effective PPP management. The management of PPPs becomes an essential element in encouraging the involvement of the private sector in building infrastructure and reducing the failure of implementing PPP strategies. The research question is framed to discuss the existing gap in theories of effective PPP management and develop a computational framework which guides the study in identifying the challenges of PPP and developing a new framework to build PPP capacity and deliver successful PPPs in Oman. The theoretical framework, which includes the principal-agent, transaction cost, new public management, institutional, and stakeholder theories, is reviewed. These theories outline the management dimensions regarding PPP for successfully delivering infrastructure projects. The relevant dimensions underlie governance (Principal Agent Theory and Transaction Cost Theory), finance and structure (Transaction Cost Theory), risk transfer (institutional and stakeholder theories), and value for money (Transaction Cost Theory). Thus, the conceptual framework explains the elements of five effective management dimensions derived from the literature review to guide the study and underpin the new framework. This study adopted an inductive approach to be consistent with the assumptions of the research philosophies. Therefore, the study used a qualitative approach consisting of four multiple case studies of PPP projects in Oman and semi-structured interviews with ten professionals and decision-makers from the public and private sectors. The researcher developed a qualitative design to ensure an open and responsive approach to studying the PPP phenomenon in Omani infrastructure projects using multiple case studies. Primary qualitative data were selected based on purposive sampling using the developed interview schedule. The participants represented professionals and regulators working on PPP infrastructure over five years to ensure the validity and reliability of data on current PPP delivery in Oman. The findings outlined significant challenges such as fragmented governance structures, immature PPP markets, inadequate institutional capacity, and a lack of knowledge of PPP models. The attributes contributing to the five effective management dimensions (EMDs) are identified based on the primary data. The analysis of the current landscape of PPP in Oman and emergent attributes for the key elements of the PPP framework is explored in the study. Towards this end, a three-level framework has been developed to approach the challenges of PPPs by emphasising the regulatory, enabling, and value-delivery aspects. The framework is tailored to Oman’s infrastructure requirements and integrates global best practices to enhance PPP processes and systems. The findings highlighted the necessity of a robust PPP framework to draw investment, improve PPP effectiveness, and fulfil national development goals.