Despite various measures taken to facilitate financing in the road sector, private investment remains limited due to several challenges. One important obstacle is the perception of high risk associated with road projects. These projects tend to have longer gestation periods and higher initial investments, making them unattractive for private investors seeking quick returns coupled with regulatory and bureaucratic hurdles can delay project approval and implementation, further restricting private participation.

Government initiatives such as public-private partnerships (PPPs) and feasibility gap financing (VGF) have been initiated to mitigate these issues. However, this strategy is not effective due to inconsistent implementation and unrealistic planning. Furthermore, investor confidence can be affected by economic and political factors.

Some in points such as:

1. High-Risk-Thinking:

– Long gestation period and adequate initial investment.

– Investors are looking for quick returns.

2. Legal and professional restrictions:

– Delays in project approval and execution.

– Improved implementation.

3. Insufficient Economic Growth:

– Lack of real revenue generated through taxation.

– Financial uncertainty.

4. Lack of robust regulatory framework:

– Difficulty in resolving disputes.

– Difficulties in implementing agreements.

5. Ineffective government strategies:

– Applications other than PPP and VGF.

– Policy deficiencies affecting investor confidence.

6. Economic and Political Environment:

– Effects of the financial crisis.

– Changes in government policies affecting the status of the business.

7. A comprehensive solution is needed:

– Removal of barriers to increased private sector participation is essential.