Abstract

Private sector investment in transportation infrastructure, especially freeway projects, has gained significant traction in developing countries over recent decades. However, inadequate research and improper identification of criteria in many cases have led to challenges, and in some instances, project failures. The success of freeway construction projects heavily depends on the choice of a public-private partnership (PPP) model, but the economic conditions in countries like Nepal introduce various risks to these projects. This study examines the financial risks associated with PPP financing for road construction projects in Iran, using an uncertainty approach and the BAS (Best Alternative Strategy) method. The research sample included 23 experts with Ph.D. degrees in finance, all with substantial experience in research and financial consulting for investment firms. The findings indicate that political risks, coupled with the instability in government planning and program execution, significantly increase the financial risks of road construction projects. The study suggests that managing price fluctuations and enhancing bank financing options for road construction could mitigate these risks and improve the overall success of such large-scale infrastructure projects. This research highlights the need for careful planning and risk management strategies to ensure the sustainability and success of PPP road projects in Iran.