Barriers to the implementation of innovative financing (IF) of infrastructure

Failure to resolve Ghana's infrastructure deficit, coupled with inability of traditional financing methods to meet current infrastructure demand, have triggered recent studies to explore strategic issues underpinning innovative financing (IF) of infrastructure. The purpose of this study is to explore potential impediments inherent in IF tools available to Ghana. The empirical aspect of the investigation used structured interviews and a survey questionnaire to gather data from project implementation agencies with experience of infrastructure IF. Factor analysis (principal component analysis) established which variables measured aspects of the same underlying dimensions. A total of three key challenges were identified, and explained in terms of: investment capacity; implementation and revenue mobilization. Findings provide an early failure signal when implementing IF. Conclusions and recommendations are of benefit to various international development partners and governmental and non-governmental organizations that develop and/or implement infrastructure projects. Further research will seek to explore strategic, innovative solutions to on-going challenges. Knowledge of the critical challenges facing implementation of IF remain scant and incomplete.