Host country requirements for infrastructure project

Abstract

The significance of host country requirements in funding projects in terms of emphasising the country needs in foreign investments, have a notable insufficiency during project appraisal stage. In this research, the importance and benefits of host country requirements for funded infrastructure projects is discussed in the context of present situation of most developing countries. This research develops a model, called the Host Country Index (HCI) to incorporate host country requirements effectively in to the infrastructure project. HCr model cross checks the macro planning requirements of host country, against different sectors towards integrated infrastructure development. Based on the feasibility studies of major highway projects in Sri Lanka, a HCr model was developed by this research for analysis of host country requirements in future highway projects. HCr model for highway projects is based on probabilistic framework and develops a project ranking system with different project classifications. These defined project classification and relevant limits for results of application of this model can be used as a tool for measuring the intensity of satisfaction of host country requirements in prospective funding projects. It would give clear advice to the project appraiser in comparing and ranking infrastructure projects. The developed HCI model for highway projects was validated by applying data from two major highway projects in Sri Lanka. The results give clear insights and quick advice from the HeI model on project appraisal by comparing each project with other competing proposals or comparing individual project with standard benchmarks.