Public authority for land acquisition is most important for site-specific infrastructure

Whether it is new infrastructure or the expansion of existing infrastructure, the project may require significant land assembly. The powers for compulsory land assembly (with corresponding compensation) usually rest with the public sector. These powers are particularly important for site-specific infrastructure. For example, some infrastructure, such as power plants, may not need to be located on a precise site. As a result, private developers who already own land that could be developed or existing landowners have less ability to obstruct the process. But if the infrastructure project is site-specific or requires compensation for many landowners, such as a new road or railway, then it is difficult for the private sector to take on the risk of assembling all of the parcels of land at a purely commercial rate. The greatest risk in this case is that of "ransom" strips of land that are critical to the project, but that the landowner will not sell or will sell only at a greatly inflated price.