Performance Assessment Framework for Private Finance Initiative Projects in Malaysia

¹ Centre of Postgraduate Studies, Universiti Teknologi MARA, Seri Iskandar Campus, Seri Iskandar, 32610, Perak, Malaysia
² Faculty of Architecture Planning and Surveying, Universiti Teknologi MARA, Seri Iskandar Campus, Seri Iskandar, 32610, Perak, Malaysia

^a Corresponding author: suzila8478@gmail.com

Abstract

Private Finance Initiative (PFI) is viewed as restructuring the previous privatisation concept in delivering value for money for the Malaysian public infrastructure. Among the restructuring efforts in the privatisation is specifying the standard assessment of private concessionaires’ performance through the execution of key performance indicators (KPIs) where the private concessionaires’ performance is benchmarked against the government’s standard. KPIs have served as useful tools in assessing performance of PFI projects. However, there is still lacking on determination methods performed to define and measure this KPIs and the absence of guidelines or a framework is also an issue in the implementation of the PFI procurement in Malaysia. Therefore, the objectives of this paper is to investigate the notion of performance assessment model approaches globally (i.e. UK, China, Australia, Serbia and Malaysia) and to identify direction for PFI performance assessment tools (KPIs) to be practiced in Malaysia. Based on the consideration of these models, this research paper propose an initial framework of performance assessment for PFI projects in Malaysia. The framework is deliberate to cover the performance of PFI at the operation and maintenance phase. The outcomes of this paper can serve as a theoretical base for the development of comprehensive and effective performance assessment for PFI projects in Malaysia.