Theoretical Foundations on Ineffectiveness and Extra-costs in Development Projects and Mechanisms for Enhancing Quality of Implementment in Iran

Extra-costs of development projects and delays in their termination, as important issues in public finance require a mechanisms for Enhancing Quality of Implementment and reducing their costs. Theorectically, performing development projects can be carried out democratically and non-democratically, imposing extra-costs in all countries. but the main problem is to find mechanism to reduce these costs as much as possible.
In this paper, given the legal context, political and policy-making structures in the approval of development projects, and the experience of some other countries, three solutions are recommended: Public-Private Partnership, Privatization and Prioritization. In this context, it is necessary to classify them into three groups ineconomical terms. Profitable (economically feasible) projects; projects that are not profitable but can be made profitable in the foreseen future; and unprofitable projects.
The first two groups of projects require Public-Private Partnership, and Privatization, and Prioritization is recommended for the third group. In doing so, a new legal context as well as existing laws should be considered.