The main purpose of this research project is to bridge the existing knowledgegap in the empirical identification and understanding of the most frequentcorrupt actions and the causes behind during procurement of infrastructureprojects in Pakistan, in addition to exploring the ways to enhance institutionalbasedtrust between the participants of the procurement process. Consequentlythe study aims to provide a conceptual framework to control corruption ininfrastructure procurement while proposing the institutional trust-buildingmechanisms. Both qualitative and quantitative approaches are utilised in thisstudy to achieve this research aim. Quantitative research data is collected usinga questionnaire survey. A total of 450 questionnaires were sent to variouspeople engaged in procurement of infrastructure projects in Pakistan. Theresponse rate was 36.7% (n=165). The questionnaire comprises of two mainquestions; one is about the most frequent corrupt actions in traditional andPublic Private Partnership (PPP) infrastructure procurement processes whileother question asks about the perceived institutional trust-building mechanismsin context of infrastructure procurement market in Pakistan. Various appropriatestatistical methods, including Mean Ranking and ANOVA were utilised toanalyse the collected data. The questionnaire survey was followed by 15 indepth semi-structured interviews with a variety of stakeholders. Theseinterviews provided information on various causes of corruption and reasons asto why people do not for example report a known incident of corruption. A traditional content analysis approach was used to analyse the data collectedusing interviews. From the analysis a cyclical framework of corruption controlemerged, and this is outlined within the thesis. The goal of this framework is tofacilitate procurement stakeholders (individuals, groups, or organisations), toimprove their anti-corruption plans from project to project. This research studyhas filled the knowledge gap through identifying the top twenty potentialcorrupt practices in traditional and PPP infrastructure procurement processes inPakistan and explored the causes behind their occurrence. The study alsorecommends the solutions to mitigate this problem throughout the life cycle ofprocurement process. In addition, the study proposes the institutional trustbuildingmechanisms in the context of infrastructure procurement market inPakistan to cater for the likely loss in trust due to perceived level of corruptionin this sector. The study has also introduced a conceptual framework to controlcorruption in infrastructure procurement process in general and particularly inPakistan. The framework does not intend to introduce new alternatives butinstead builds on existing practices so that users can more easily adapt to theimprovement. The findings of this research are believed to be useful for allpractitioners who are either considering or currently involved in infrastructureprocurement process in Pakistan and trying to avoid or minimise the influenceof corruption.

Due to the increasing amount of private-public partnership procurements, the pros and cons of this subject area is of great concern for economists and stakeholders. Previous studies regarding the rationale of this type of procurement argued on the externalities of private-public partnership. Most arguments were upon the negative externalities, which can reduce the private-public partnership’s value. In this thesis, externalities in private-public partnership for infrastructure projects are explained by using operation and maintenance, and user’s quality in more detail and compared in different situations. This study carries that with having positively correlated qualities, the private sector will have maximum profit and by having uncorrelated qualities, and the private sector will have more profit compared to negatively correlated qualities. Furthermore the ways to design optimal contract for public sector, which gives the incentive to the private sector to enhance quality and reduce life-cycle costs, is analyzed.

Public Private Partnership (PPP) is a well established methodology for procuring public works projects. By incorporating the private sector’s expertise, efficiency, innovation, business sense, risk sharing, financing etc. into public works projects, the quality of public services and facilities can be uplifted. Like many jurisdictions, Hong Kong is also keen to take aboard this methodology which is so familiar but yet so distant. Although they have been one of the first jurisdictions to utilise the private sector in public works projects, their comfortable financial reserves has meant that there has been no urge to push the movement until recently. PPP has become increasingly popular amongst governments. The Hong Kong Special Administrative Region (HKSAR) government is no exception. Some of the more active works departments have commissioned studies to investigate the best ways to deliver these projects, others have even trialed the method themselves. The efficiency Unit of the HKSAR government has also become an active arm in conducting research in this area. Although so, the information that is currently available is still very broad. Building from their works there is a need to develop a best practice framework for implementing PPP projects in Hong Kong by incorporating international experiences. To develop a best practice framework will require thorough investigation into the benefits, difficulties and critical success factor of PPP. PPP should also be compared with other procurement methods. In order to do so it is important to clearly understand the local situation by an analysis of projects conducted to date. Lessons learnt can further be derived from other countries and incorporated to those derived locally. Finally the best conditions in terms of project nature, complexity, types, and scales for adopting PPP should be derived. The aim and objectives of this study were achieved via a comprehensive literature review, in-depth case analyses, interview survey with experts from both Hong Kong and overseas, and finally a large scale data collection was conducted via a questionnaire survey with PPP practitioners. These findings were further triangulated before they were used as the basis to form the best practice framework presented in this thesis. The framework was then further validated by PPP experts to ensure it is comprehensive, objective, reliable and practical. This study has presented a methodology that can be adopted for future studies. It has also updated our knowledge on the development trends of PPP as well as opened up the experiences of other jurisdictions. The findings have shown that the local industry is familiar with “what” should be done in PPP projects but they are unsure of “how” these goals can be achieved. This framework has allowed this further knowledge to be delivered to PPP practitioners. As a result, the development of this framework can help to resolve the current economic crisis by encouraging more developments and business opportunities for the private sector. In addition, the correct projects can be delivered by PPP, the advantages of PPP can be maximised, and the general public can benefit from the private sector’s participation.