Concession Practices and the Cost of Road Projects Delivery in Southwest Nigeria

Implementing road concession practices has faced several challenges, resulting in delays, cost overruns, and substandard project outcomes in developing world. Thus, this study examined the relationship between concession practices and road projects delivery in southwest Nigeria. The study employed a survey research design to collect quantitative data from stakeholders involved in road infrastructure projects within the study area. Inferential statistics used involved Partial Least Squares Structural Equation Modeling (PLS-SEM). The results showed that clarity of responsibility (p = 0.01), execution and accountability (P = 0.00), communication protocol (p = 0.00), sustainability and innovation (P = 0.00) alternative financing (P = 0.00), government financing (P = 0.00), and performance monitoring (P = 0.02) have positive and significant effect on cost of road projects delivery in the study area.  However, Private financing (0.00) has negative and significant effect on cost of road project delivery. This is an indication that a one standard deviation increase in Private financing will reduce cost of road project delivery by 0.28 standard deviation. The study concludes that the effect of the indicators of responsibility development, maintenance activities, financing options and concession operation were diverse for cost of road project delivery in the study area. The study recommends that alternative and government finance are critical financing options to cost of road project delivery while multilateral and private finance lessens the cost of road project delivery in the study area.