Adoptability of PPP Models to Overcome Procurement Issues in Affordable Housing Projects

Abstract Urbanization has caused severe housing issues related to affordability in urban areas. In Colombo, Sri Lanka, middle-income earners are more vulnerable to housing issues due to housing unaffordability and demand supply imbalances, and structural and distributional issues. However, public–private partnership (PPP) models have been successfully initiated in addressing urban housing affordability issues worldwide. Hence, this research aimed to investigate the adaptability of PPP models to overcome procurement issues in state-sector middle-income housing projects in Sri Lanka. The aim was accomplished via a three rounds of the Delphi approach by collecting data through semistructured interviews from experts. Collected data were analyzed through manual content analysis via three-phase coding. Findings revealed that PPP models, joint venture, concession, design–build–finance–operate–maintain (DBFOM), build–own–operate–transfer (BOOT), lease–develop–operate, design–build–finance–operate (DBFO), mixed PPP, and build-lease-transfer (BLT) offer viable alternatives for addressing challenges in delivery of affordable housing in Sri Lanka through conventional public-sector procurement methods. Key PPP features identified as critical to overcoming existing procurement issues include partnership and collaboration, shared risks and responsibilities, private funding, innovation and efficiency, value for money, and digital transformation. However, weak regulatory frameworks, lack of sector-specific PPP policies, bureaucratic inefficiencies, and absence of a central authority were highlighted as barriers to implementation of PPPs. The findings offer a foundation for countries that share similar socioeconomic backgrounds, particularly for developing countries, to consider PPP models in delivery of affordable housing.