In today’s world, the development of economic, industrial, and social infrastructure is a critical requirement for sustainable growth in developing countries. However, limited public financial resources, economic volatility, and dependency on oil revenues have posed serious challenges to financing large-scale projects. In this context, the emergence of modern financial models has provided a potential solution for attracting both domestic and foreign investment, drawing the attention of policymakers and investors alike.
The Need for Financial Modernization in Infrastructure Projects
Major infrastructure projects—such as roads, power plants, treatment facilities, ports, and transmission lines—require large-scale and long-term investments. At the same time, governments, constrained by limited budgets, increasingly seek private sector participation in financing, constructing, and operating these projects.
This is where models such as BOT, PPP, and venture capital (VC) enter the picture.
BOT Model (Build-Operate-Transfer)
One of the most widely used models in developing countries is BOT. Under this model, a private company or consortium builds a piece of infrastructure, operates it for a specified period, and eventually transfers it to the government.
Advantages:
Reduces financial pressure on the government
Transfers construction and operation risks to the private sector
Encourages investor efficiency and project optimization
Disadvantages:
Complexity in contract structuring
Political and currency risks for foreign investors
Public-Private Partnership (PPP) Model
Under this model, the public and private sectors jointly share risks and benefits based on transparent and long-term contracts.
Advantages:
Leverages private sector technical and managerial expertise
Allows better control over costs and project timelines
Attracts foreign financial resources
Disadvantages:
Requires strong governmental regulation and oversight
Difficulty in defining roles and responsibilities clearly
Blended Finance Models
Blended finance combines public investment, development aid, and private capital to lower risks for private investors. This model is especially used in long-term infrastructure projects such as renewable energy, water, and environmental sustainability.
Advantages:
Eases private sector entry into long-term infrastructure projects
Reduces risk through developmental funding
Supports sustainable development initiatives
Disadvantages:
Complex coordination between financial institutions
Difficulty in measuring investment impact
The Role of Investment Companies in Modern Financial Models
Infrastructure investment companies play a key role in designing, financing, monitoring, and evaluating infrastructure projects. With specialized legal, technical, and financial teams, they can significantly enhance the success rate of public-private partnerships and help developing countries access international financial markets.
Dr. Mousa Roshandel, with decades of experience in industrial investment and large-scale project management, is the founder and CEO of Aras Holding. With deep insight into regional economic needs and the ability to attract capital, he has paved the way for Aras Holding’s strategic entry into infrastructure investment. Dr. Roshandel believes that sustainable development is only achievable through a comprehensive vision, modern financial tools, and active collaboration with the private sector.
Aras Holding, with a network of specialized companies in consulting, technology, energy, construction, and investment, is a successful example of a unified and development-oriented industrial group. With an emphasis on innovative financing models and interdisciplinary teams, the holding has participated effectively in both domestic and international infrastructure projects. Its approach is rooted in balanced development, international cooperation, and the use of advanced technology.
Aras Investment, a key subsidiary of Aras Holding, focuses on large-scale infrastructure projects in sectors such as oil and gas, renewable energy, and smart cities. Through in-depth market analysis, localized financial modeling, and partnerships with international firms, it provides a secure and high-return environment for both local and foreign investors. With a precise understanding of regional needs and global financial systems, Aras Investment plays a vital role in advancing sustainable regional development.