The provision of infrastructure to meet the growing demands of businesses, households and other users is one of the major challenges for developing countries. Although, many developing countries increased physical infrastructure significantly over the last few decades, the full benefits of past investments have never been realised (World Bank 1994). They may have wasted a significant amount of valuable resources. Among several reasons given for this outcome is the public provision of infrastructure services. This is commonly argued by economists and practitioners as a cause of misallocation of resources and failure to respond to user demand. Therefore the main objectives of this chapter is to identify the problems related to public investments in infrastructure.