Identification and Analysis of the Barriers to Private Investment in Urban Development Projects (Case Study: District 10 of Tehran Municipality)

Introduction Management of municipalities is based on the income and expenditure. The main sources of income are from the collection of duties and the cost of municipal services. Dependence of municipal and city revenues highly influenced by the periods of boom and recession has led municipalities to targeting, planning and implementation measures in different fields. Decision-making power is strongly influenced by the market and its agents act work;  in some circumstances, not even able to pay its current expenses so that staff salaries are paid with a long delay. Economic problems arising from the lack of income in recent years as the recession in the price of land and reduced construction in urban areas as well as reduced liquidity is one of the hard periods for  municipalities of Iran. Methodology District 10 of Tehran is a center not attractive for private sector investment. This is due to some reasons such as shortage of land, capital return, lack of extra performance and density. In this study, we tried to rely on a field survey to identify potentials of the area using some of the most important indices. The most important financing instruments are also provided. This study with the current state of private investment in the Municipality of Tehran is trying to determine the strengths and weaknesses to attract investment in the region through which it can be improved. The questions of this study are that: 1. Which obstacles are the most important in the way of private sector investment in region 10? 2. What are the effective strategies to eliminate these obstacles? The study was a qualitative approach based on questionnaires and in-depth interviews of the investors and officials associated with the investment in selected areas of Tehran. The problems investors are faced with in the private sector were investigated from the perspective of public participation organization experts. Questionnaires and interviews were completed by three groups of the organization, financial, administrative, and technical and project management assistances in the municipalities. The questionnaire has open questions to gain the unknown problems and obstacles the investment is faced with from both inside and outside the organization. The 4 interviews of the vice-investment, technical assistance and project control and management is carried out. Several methods are used to fund and some of which are as follows. It should be noted that these methods is considered more than other forms of investment in municipal projects.  foreign direct investment (FDI)  foreign indirect investment (FPI)  Build, Operate, Transfer (BOT) (Build Operate Transfer)  Construction, operation, ownership, transfer (BOOT)  Build, operate, ownership (BOO)  Buy, build, operate (BBO)  build, lease, transfer (B.L.T)  Buyback (Buyback)  Civil partnership  combined methods and other methods of participation. The questions in the interview with deputy public partnerships sample municipalities are as follows: 1. What are the assistance measures in the investment? 2. What are the causes of success / failure in attracting investment in the region? 3. What do you think about the most important obstacles in the way of private sector participation in Tehran? 4. What are the suggestions for providing ground proposed private sector participation? 5. What is the role of public participation organization in  preparing the environment for private sector participationinvestment? 6. How you guess the future for investment in the region? As well as the questions on the interviews with the following investors are: 1. To what extent you are satisfied from municipal as a law partner in this investment? 2. What is your most important concern in the process of signing a contract until the end? 3. Tell us the problems the investors were faced with, so far? 4. Tell us the problems you forecast in work process? 5. What suggestions do you have for improving the process works from beginning to end? 6. How do you see the role of partnership in providing the conditions of this contract? Results and Discussion In general, the problems the investment is faced with in the Tehran municipality are divided into two groups inside and outside the organization. Price stability and type of contracts is among the most important problems of the investors. The problems related to the organizational structure are divided into two categories; first the municipal issues related to the definition of packages and the lack of follow-up property rights problems. The second category of problems is related to the type of contracts, a long process of investment, and lack of transport before the construction as the most important problems related to the organization. The most important proposals from investors to improve the investment conditions require more and more constructive engagement between the parties to reduce the amount of investment. This could be brought complications absorbed by the ground, the easing of regulations, ensuring back profits, investment committee and the proposed closure of the investment. Conclusion In accordance with the priorities, the most important financial instruments are given. Some of the important barriers to investment of private sector in district 10 of Tehran municipality are including the tendency to sell rather than participate, change of positions and their problems, movement and carefulness, time-consuming contract formation, contract terms, project expertise problems, ownership problems after termination of project, transfer of ownership, technical expertise and vision to the venture capital, further enhancing the role of public participation organization, investment packages, management in operation of the projects, no floating of contracts, no guarantee, and inconsistency of conditions with the terms of the contract are most.