Strengthening the framework for the adoption of private finance initiative in local government infrastructure procurement in Malaysia

Improving local authority’s (LAs) responsibility in infrastructure provision is significant if local authorities wish to provide efficiency of public infrastructure and services to communities. The use of a appropriate procurement methods can effect project efficiency and success. Different procure...

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Bibliographic Details
Main Authors: Salleh, Dani, Hasan, Maryadi, Junaidi, Noni Harianti, Rameli, Norizan
Format: Conference or Workshop Item
Language:English
Published: 2020
Subjects:
Online Access:https://repo.uum.edu.my/id/eprint/28024/1/INSORPAD%202020%20264%20276.pdf
Description
Summary:Improving local authority’s (LAs) responsibility in infrastructure provision is significant if local authorities wish to provide efficiency of public infrastructure and services to communities. The use of a appropriate procurement methods can effect project efficiency and success. Different procurement method will have different effect therefore it is very crucial to consider all factors in the selection of the most appropriate procurement strategy. This situation has forced local authorities to be more creative and innovative in their procurement strategy, and one of the method is to involve the private sector in infrastructure provision. Furthermore, local authorities in many countries have turned to PFI procurement strategies in delivering public infrastructure. However, this methods is still less considered in local authorities in Malaysia, even though the model was introduced in Malaysia since 2006 through Ninth Malaysia Planning. Therefore, the aim of this paper is to discuss the discussions the relevant of PFI adoption model as a procurement strategy in local government, in which to see how PFI implemented in the context of local government, particularly on the critical success factors study experienced of other countries. This paper also looks at the issues and challenges faced by local authorities in Malaysia in implementing PFI.