Urban Development Policy Making

Urban Development Policy Making

Analyzing the Implementation Barriers to Attracting Investment In Urban Management Projects (Case Study Of Tehran Municipality)

Document Type : Case Study

Authors
Navid Khasehbaf 1
Ali Ansari 2
Amir Golabzaei 3
1 PhD Student of Industrial Management Department, Islamic Azad University, North of Tehran Branch
2 Master of Economic Management, Investment and Public Participation Organization Of Tehran Municipality
3 PhD in Industrial Engineering, Affiliated Faculty, Azad University, North of Tehran Branch
10.22034/judpm.2026.549006.1065
Abstract
Attracting investment in urban management projects is a fundamental pillar of sustainable development and improving the quality of life in megacities. Focusing on the experience of Tehran Municipality and applying the Public–Private Partnership (PPP) approach, this study identifies and analyzes the key implementation barriers to investment attraction. Data were collected through the review of official documents, bylaws, internal reports, and previous studies, and were categorized using thematic analysis into four main dimensions. The findings indicate that the most critical barriers include the absence of a comprehensive legal framework for PPP, institutional fragmentation and the lack of a central coordinating body, limited use of innovative financing instruments and overreliance on traditional methods, as well as weak public trust and negative attitudes toward private sector participation. A comparison with the World Bank’s PPP Reference Guide shows that the majority of challenges stem from institutional and legal gaps relative to international standards. Accordingly, policy recommendations include legal and institutional reforms, the establishment of an independent PPP authority, the development of innovative financial instruments such as Islamic finance, and the enhancement of transparency and public trust to strengthen the system of investment attraction. By combining local experiences from Tehran Municipality with international theoretical frameworks, this article proposes practical and policy-oriented pathways for improving the investment process in urban management in Iran.
Keywords
Urban management, Investment attraction, Tehran Municipality, Public-Private Partnership, Implementation barriers

Subjects

1.  Almarri K, Boussabaine H. Critical success factors for public–private partnerships in smart city infrastructure projects. Construction Innovation. 2025;25(2):224-47.
2.  France-Mensah J, Kothari C, O’Brien WJ, Jiao J. Integrating social equity in highway maintenance and rehabilitation programming: A quantitative approach. Sustainable cities and society. 2019;48:101526.
3.  Sclar E. The political economics of investment Utopia: public–private partnerships for urban infrastructure finance. Journal of Economic Policy Reform. 2015;18(1):1-15.
4.  Ghafari E, Daneshfard K, Memarzadeh Tehran G. Designing a Public-Private Partnership Model in Urban Development Infrastructure Projects: A study on Tehran Municipality. Iranian journal of management sciences. 2020;15(60):27-50. [In Persian]
5.  Tilaki MJM, Abdullah A, Bahauddin A, Marzbali MH. An evaluation to identify the barriers to the feasibility of urban development plans: Five decades of experience in urban planning in Iran. Journal of Urban and Environmental Engineering. 2014;8(1):38-47.
6.  Sarvari H, Nassereddine H, Chan DW, Amirkhani M, Md Noor N. Determining and assessing the significant barriers of transferring unfinished construction projects from the public sector to the private sector in Iran. Construction Innovation. 2021;21(4): 592-607.
7.  Bank W. Public-private partnerships: Reference guide version 3. World Bank Washington, DC; 2017.
8.  Hodge GA, Greve C, Boardman AE. International handbook on public-private partnership: Edward Elgar Publishing; 2010.
9.  Stadtler L, Probst G. How broker organizations can facilitate public–private partnerships for development. European Management Journal. 2012;30(1):32-46.
10.       Yescombe ER. Public-private partnerships: principles of policy and finance: Elsevier; 2011.
11.       Abdel Aziz AM. Successful delivery of public-private partnerships for infrastructure development. Journal of construction engineering and management. 2007;133(12):918-31.
12.       Yakubova S, Yunusova S, Shaislamova N, Murodov S, Avazov N, Shovkatov N, editors. The role of public-private partnerships in financing infrastructure projects. E3S Web of Conferences; 2021: EDP Sciences.
13.       Vale de Paula P, Marques R, Gonçalves JM. Critical Success Factors for Public-Private Partnerships in Urban Regeneration Projects. Rui and Gonçalves, Jorge Manuel, Critical Success Factors for Public-Private Partnerships in Urban Regeneration Projects. 2024.
14.       Nasiri Sagharloo S. Municipal Construction Project Failure Factors in Tehran, Iran. 2023.
15.       Pourahmad A, Lotfi S, Omranzadeh B, Mahdi A. The failure of the integrated urban management in Iran: an analysis from the perspective of interactive and legal problems between the state and municipality. International Journal of Management Science. 2015;2(1):1-12.
16.       Alizadeh H, Meshkini A. On the road to urban sustainability: identifying major barriers to urban sustainability in Iran. Review of Regional Research. 2025:1-26.
17.       Shokri M, Elmimoghaddam M. Examining the Barriers to Private Sector Participation in Khorramabad Municipal Projects. Urban Economics and Planning. 2025;5(4):140-51.
18.       Rasouli S, Mehboob Lotfkar A. Evaluating the Failure of Municipalities in Attracting Private Sector Investors. Public Organizations Management. 2024;12(Series 48):167-86.
19.       GOVERNORS BO. Asian Development Bank—ADB. Organization. 2020.
20.       Chan DW, Sarvari H, Husein AAJA, Awadh KM, Golestanizadeh M, Cristofaro M. Barriers to attracting private sector investment in public road infrastructure projects in the developing country of Iran. Sustainability. 2023;15(2):1452.
21.       Creswell JW, Clark VLP. Designing and conducting mixed methods research: Sage publications; 2017.
22.       Flick U. The SAGE handbook of qualitative research quality: SAGE Publications Limited; 2024.
23. Farah Binti Ibrahim & Amer Hamzah Bin Jantan. Challenges, Barriers and Solutions in Public-Private Partnerships (PPP): A Comprehensive Review. International Journal of Professional Business Review,2025, 9(10).
24. M. Jiang et al.. Local Government’s Intention to Use Public-Private Partnerships
MDPI Sustainability. 2025.
Urban Development Policy Making
Volume 3, Issue 1
Spring 2026
Pages 173-186

  • Receive Date 29 July 2025
  • Revise Date 02 September 2025
  • Accept Date 17 November 2025
  • Publish Date 31 March 2026