A relationship between infrastructure development and economic development of a country has long been recognised. There are multiple and complex linkages within the economy. Infrastructure development may effect production and consumption directly and create many positive and negative externalities.1 Moreover, it involves large flows of expenditure which have a direct impact on the budget and the balance of payments. Therefore, it is essential to look at the relationship between infrastructure and the economic development process before analysing the efficiency and productivity of public investment in this sector.