Managing socio-economic infrastructure projects in developing countries: improving decision-making through risk assessment

Abstract

The management of socio-economic infrastructure projects in developing countries, including roads, bridges, tunnels, railways, ports, airports, dams and others, presents multifaceted challenges, particularly in environments marked by complexity and uncertainty. Despite the efforts of governments in these countries, these types of projects still face numerous risks, including political, technological, regulatory, financial, and market risks. The objective of the study was to examine the practices related to the problem of the decision-making process and risk assessment in the management of socio-economic infrastructure projects in developing countries, focusing on the example of the Algerian experience. This research used a qualitative analysis of the decision-making process through 15 semi-structured interviews conducted with representatives of various institutions and administrations responsible for supervising the East-West highway project in Algeria and several focus groups conducted or observations noted at the meetings where the author participated as a principal engineer at the Ministry of Public Works (project owner) during the different phases of the implementation of this mega-project. This made it possible to carry out a global assessment of current practices and to identify the major risks that can impact the decision-making process to improve the management of socio-economic infrastructure projects in Algeria and also in developing countries. The results of the study reveal the risks related to the complexity of the external and internal environment of the projects, in which among the 13 major risks identified, 61.54% have a high criticality, 30.77% have a medium criticality, and 7.69% have a low criticality. The results show that several important aspects need to be improved, including: 1) strengthening financial stability; 2) political risk mitigation; 3) implementing economic stability measures; 4) clarifying contractual aspects; 5) promoting cultural sensitivity and communication; 6) improving cost and quality control measures. This study provides valuable guidance to governments, businesses, managers, and other individuals or groups interested in promoting the management of socio-economic infrastructure projects in developing countries.